(Alliance News) - SimplyBiz Group PLC on Tuesday reported sharp growth in profit and revenue due to the company's GBP74 million acquisition of fintech platform Defaqto.
In a separate statement, SimplyBiz said Tim Trotter, a non-independent non-executive director, will retire at the forthcoming annual general meeting on April 27.
The company said it will look to appoint a new independent non-executive director in due course.
"Tim Trotter has served the board with distinction over the past six years and as an adviser to the group for a number of years prior to joining the board. In those roles he has made a significant contribution to the growth and development of the group over many years," said Non-Executive Chair Ken Davy.
In 2019, the compliance and business services provider's pretax profit more than doubled year on year to GBP10.8 million from GBP4.2 million.
Revenue was 24% higher in 2019 at GBP62.8 million from GBP50.7 million. The group attributed the stronger performance to the acquisition of fintech platform owner Defaqto in March for GBP74.3 million, which has been fully integrated, and allows SimplyBiz to serve around 5,800 intermediary firms and 350 financial institutions.
Joint Chief Executive Matt Timmins said: "We are delighted to have successfully completed the strategic acquisition and rapid integration of Defaqto and welcome these new colleagues into the SimplyBiz group. This acquisition instantly expands the group's customer base by over 50% and materially extended our software and service platform across all key sectors. The acquisition enhances the group's strong and sustainable profit margins."
SimplyBiz proposed a final dividend of 2.85 pence, giving the firm a total dividend of 4.26p. The company paid a 3.03p dividend in a the nine-month period to December 31, 2018 following its initial public offering.
Looking ahead, Timmins commented: "The board is confident and optimistic about 2020. We are guiding to marginally lower growth in revenues and earnings before interest, tax, depreciation, and amortisation, particularly in employee benefits and valuations, with operational gearing flowing through to earnings. We expect both headline and underlying growth to remain strong."
Shares in SimplyBiz were 8.7% higher in London on Tuesday at 190.00p each.
By Paul McGowan; paulmcgowan@alliancenews.com
Updated by Evelina Grecenko; evelinagrecenko@alliancenews.com
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