ULS Technology plc (the Group), a provider of online technology platforms for the UK conveyancing and financial intermediary markets have announced its Full Year results for the year leading to the 31st March 2020.
Despite global conditions and the drop in the UK property market, the Group’s revenue impressively was only reduced by less than 6% to £28.3m (FY 2019: £30m).
The Group saw an improved gross margin percentage to 44%, an increase of 2% on the previous year. The cash flow from operating activities also grew to £5m from £4.8m the year before.
Overall, the underlying EBITDA of the Group (before exceptional items and amortisation of tangibles arising on consolidation) was £6m, a drop from £6.3m the year previously.
In the year leading up to 31 March 2020, the Group saw a number of operating highlights, including:
- Increased investment in and development of DigitalMove, which aims to transform the experience of buying and selling property for the entire value chain . The are now over 10,000 cases that have used the platform.
- With over 3,500 intermediary advisers using the platform, there has been a ontinued strong introducer demand, showing an 18% increase on the previous year.
- There has been further developed lender proposition, attracting new introducers, including Principality Building Society and a number of challenger banks
- The Group also strengthened its operational team by appointing a new Head of Sales for DigitalMove and a Group Conveyancing Director
The Group also saw Board changes:
- Following the retirement of Geoff Wicks, Martin Rowland joined the Board of ULS as Chairman in November 2018, prior to which he spent 10 years in a variety of investment roles
- Oliver Scott, a partner in the Company’s largest shareholder, Kestrel Partners, joined the Board in January 2020 as a Non-Executive Director
Following the figures released for the Full Year up to 31 March 2020, the Group has also had a number of highlights;
- Successful launch of Rapid Remortgage – the first of ULS’s new customer and introducer driven products on our DigitalMove platform
- The Group has gone live with a new challenger bank with a further one on the point of going live.
- Imminent launch of Solicitor Portal, which will allow solicitors to use DigitalMove for non-ULS introduced business– opening up potentially significant new revenue streams for the Group
- Signed a number of contracts with key mortgage networks
- Quicker than expected rebound in the housing market with June conveyancing instructions run-rate for ULS ahead of June 2019
Steve Goodall, Chief Executive of ULS Technology plc, commented:
“There is no doubting that this year was one of the most challenging to date with the housing market affected by Brexit and then COVID-19, which is still impacting market conditions. We have been focusing on positioning ourselves for when the market turns and we are delighted to see the rapid increase in ULS instructions as the market has burst back in to life in June.
“Our three key targets this year are to continue growing the number of advisers using our conveyancing comparison platforms, deliver market-leading new products and launch DigitalMove into major new categories of business with long term potential across the home-moving value chain.”
