SMV.L Regulatory News (SMV)

Smoove plc

(The "Group", "Smoove" or the "Company")

AGM Statement

Smoove plc (AIM: SMV), the customer focused technology and services business aiming to revolutionise home moving and ownership, announces a trading update ahead of holding its Annual General Meeting ("AGM") at 14.00 today. The result of the AGM will be announced on the conclusion of the proceedings.

Current Trading

Instructions and completions through eConveyancer increased by 29% and 42% respectively for the 5 months to 31 August 2022 compared to the previous corresponding period. This strong growth is primarily in the remortgage segment and demonstrates the depth of the Group's relationships with its introducers and its ability to capture market growth in the remortgage segment. This change in business mix away from higher margin purchase and sale cases means that the Group's average yield per completion will be lower year-on-year. The net effect is that the Group's gross profit for the first 5 months of trading is unchanged compared to the prior year.

Following the cost reduction initiatives announced at the presentation of annual results last month, cash burn is moderating.  Net cash as at 31 August 2022 was £16.9m. 

Growth initiatives

The Board continues to focus on broadening its end user base beyond the first-time buyer market. It is also seeking to increase touch points and efficiencies across the home moving and ownership process with a view to becoming a one stop shop for everyone involved.

Specific initiatives are starting to bear fruit as evidenced by the volume of new clients and users utilising the eConveyancer platform, with L&C Mortgages and Just Mortgages among a number of additions during the first quarter. Smoove Start, a digital platform that reduces the administrative burden of the onboarding process is currently being rolled out to estate agents with the number of contracted firms signing up for the service ahead of plan and providing an opportunity to cross sell the Company's conveyancing services.

Outlook

The Board anticipates that the recently announced changes to stamp duty thresholds will help more people get on the property ladder which should in turn positively impact the Group given its strength in the first-time buyer segment of the market.

Additionally, the Group has several growth drivers that underpin the Board's confidence in the future. By diversifying its portfolio of products and services, the Company's revenue profile will become less reliant on eConveyancer whilst also benefitting from increased cross selling capabilities. 

Enquiries:

About Smoove:

Smoove's (hellosmoove.com) mission is to revolutionise the home moving and owning process for everyone involved. The Company's cornerstone cloud-based platforms provide significant leverage for growth with strong, established client bases and routes to market - including mortgage brokers, conveyancers, estate agents and lenders.

eConveyancer ( https://econveyancer.com/) is one of the leading distribution channels for conveyancing in the UK, bringing consumers and legal professionals together via comparison services, which provide solutions for home movers and the re-mortgage market.

The Company's existing platforms have been designed with a view to adding services and reach and the Company is well placed to create exponential returns as functionality increases.