SimplyBiz ‘optimistic’ after reporting losses

Compliance provider SimplyBiz is optimistic after posting year-end results with earnings before tax above management expectations.

In its pre-close trading update for 2018, the provider’s balance sheet shows net cash of £6.4m following what it termed a difficult year for markets.

SimplyBiz is now nine months on from its initial public offering on the London Stock Exchange which cost it £6.3m and was followed by losses of £1.2m for the first half of 2018.

On the financial planning side, SimplyBiz lept to defend its services last year following complaints from advisers.

It has seen positive growth in membership numbers since launching end-to-end investment system Centra.

The results show group membership numbers increased 8.5 per cent from 3,433 in December 2017 to 3,726 at the close of 2018.

The group said last week that around 2,300 advisers are currently using Centra.

SimplyBiz joint chief executive Matt Timmins says the provider will look to expand offerings this year.

He says: “These [results] reinforce the strength of our organic growth and offer opportunities to pursue selective acquisitions.”

The group is “full of optimism” for 2019 despite tough markets, he adds.

“These results provide us with a great deal of confidence. Our capital position and a highly-fragmented marketplace offer us ongoing opportunities to build out our service offering.”