ULS.L Share News (ULS)

(Sharecast News) - Conveyancing and financial intermediary business-to-business platform provider ULS Technology updated the market on its trading for the year on Wednesday, reporting that it expected to announce financial results "broadly in line" with both market expectations and the prior year.The AIM-traded firm said that while revenue was slightly behind the prior year at £29.9m in the year ended 31 March, from £30.7m, a "strong" gross margin performance delivered an adjusted profit before tax of £5.4m, slipping slightly from £5.5m.It said the economic backdrop during the year was "highly unsettled", with Brexit widely blamed for the continued nationwide slow-down in the housing market.The group said that it had continued to generate "strong" cash flow, however, with the directors - subject to shareholder approval - set to maintain the group's policy of paying a progressive dividend for the financial year.ULS Technology said that operationally, its 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.That had led to improved sales of higher margin services, with the board expecting such momentum to continue into the new financial year.A pilot version of its new flagship product, 'DigitalMove', was launched on schedule in January, enabling purchase conveyancing cases to be completed in a "secure and paperless" environment.That was the first phase of a multi-phased launch of the product, which would be rolled-out over the next 12 months.Looking ahead, ULS Technology said the new financial year was expected to be one of positive transition, as the business continued to penetrate the mortgage broker community and deliver the roll-out of DigitalMove.While DigitalMove was not expected to generate significant revenue in the period, the board said it expected the product to be a "key differentiator" in winning new business going forward, as well as opening up new revenue streams.Early feedback had been "extremely positive", ULS said, with the group having "great confidence" in the long-term success of the product.Market conditions at the start of the year remained unsettled, however, with lower transaction volumes reported across the market compared to the prior year.The board said it was conscious of such market headwinds, however it believed that continued investment in the business would help to insulate the group from that, and to benefit when the market recovered."Since becoming CEO a year ago 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."In particular the investment in DigitalMove underpins the longevity of the business and gives us a clear advantage over our competitors."Goodall said it had also included an expansion of and refocusing of activity within the company's sales team."Such investments will ensure that the group builds a strong base for long-term profit growth."ULS Technology said it would announce its full-year results for the 12 months ended 31 March on 19 June.