ULS Technology PLC Trading Update and Notice of Results (6527X)
May 01 2019 - 1:00AM
UK Regulatory
TIDMULS
RNS Number : 6527X
ULS Technology PLC
01 May 2019
ULS Technology plc (The "Group")
Trading Update and Notice of Results
ULS Technology plc (AIM:ULS), the provider of online B2B
platforms for the UK conveyancing and financial intermediary
markets, provides a trading update for the 12 months to 31(st)
March 2019.
Financial Highlights
The Group expects to announce financial results for the 12-month
period broadly in line with both market expectations and the prior
year. Whilst revenue was slightly behind the prior year, at
GBP29.9million (2018: GBP30.7m), a strong gross margin performance
delivered an adjusted profit before tax* of GBP5.4 million (2017:
GBP5.5 million).
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 continues to generate strong cash flow and the
Directors will, subject to shareholder approval, maintain the
Group's policy of paying a progressive dividend for this financial
year.
*before exceptional items and amortisation of intangibles
arising on consolidation.
Operational Highlights
The Group'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. This has led to improved sales of
higher margin services and the Directors expect this momentum to
continue into the new financial year.
A pilot version of the Group's new flagship product,
DigitalMove, was launched in January 2019 (on schedule) 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.
Outlook
Operationally, the new financial year is expected to be one of
positive transition, as the business continues to penetrate the
mortgage broker community and delivers the roll-out of DigitalMove.
While DigitalMove is not expected to generate significant revenue
in the period, it is expected to be a key differentiator in winning
new business going forwards as well as opening up new revenue
streams. Early feedback has been extremely positive and the Group
has great confidence in the long term success of the product.
Market conditions at the start of the year remain unsettled with
lower transaction volumes reported across the market compared to
the prior year. The Board is conscious of these market headwinds,
however, believes that continued investment in the business will
help to insulate the Group from this and to benefit when the market
recovers.
Notice of Results
The Group will announce its full year results for the year
ending 31 March 2019 on 19 June 2019 and will hold an analyst
briefing at 09.30am at Walbrook PR's offices on that day. Analysts
wishing to attend the briefing should telephone Walbrook on 020
7933 8780 or email ulsgroup@walbrookpr.com.
Steve Goodall, Chief Executive of ULS Technology plc,
commented:
"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. In particular the
investment in DigitalMove underpins the longevity of the business
and gives us a clear advantage over our competitors. It has also
included an expansion of and refocusing of activity within our
sales team. Such investments will ensure that the Group builds a
strong base for long-term profit growth."
Enquiries:
ULS Technology plc Tel: 01844 262392
Geoff Wicks, Non-Executive Chairman
Steve Goodall, CEO
John Williams, Finance Director
Numis Securities Limited (Nomad & Tel: 0207 260 1000
Broker)
Stuart Skinner / Paul Gillam, Corporate
Advisory
Michael Burke, Corporate Broking
Walbrook PR Limited ulsgroup@walbrookpr.com or Tel: 020 7933
8780
Paul Cornelius
Nick Rome
Sam Allen
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
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END
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