LONDON (Alliance News) - ULS Technology PLC on Wednesday said it expects its annual results to be in line with both market expectations and the prior year.
The online business-to-business platforms provider said revenue in the year to the end of March was slightly behind the prior year, at GBP29.9 million and GBP30.7 million, respectively.
Meanwhile, a strong gross margin performance delivered an adjusted pretax profit of GBP5.4 million, again down slightly from GBP5.5 million a year earlier.
ULS Tech's gross margin improved as a result of refocusing the sales team's attention on increasing the number of mortgage brokers using the company's platforms, which led to improved sales of higher margin services.
"I am pleased to report that the business has continued to grow operationally and, being in a strong financial position, we have made a number of investments to drive the long-term profitability of the group," said Chief Executive Steve Goodall.
A pilot version of the company's new flagship product, DigitalMove, was launched in January, enabling purchase conveyancing cases to be completed in a secure and paperless environment.
This is phase one of a multi-phased launch of the product which will be rolled-out over the next 12 months, ULS Tech said.
While the company said it does not expect DigitalMove to generate significant revenue in its current financial year, it is expected to be a key differentiator in winning new business going forwards as well as opening up new revenue streams.
Looking ahead, ULS Tech said market conditions at the start of the year remain unsettled with lower transaction volumes reported across the market compared to the prior year.
ULS Tech said it will publish its annual results on June 19.
The stock was trading 9.0% lower on Wednesday at 70.00 pence a share.
