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SimplyBiz moves from net debt to net cash after IPO

Support service provider SimplyBiz has moved from a net debt position to holding a cash surplus after its stock market listing last year.

In its first full-year results since its IPO on Aim last April, SimplyBiz says its net debt has reduced from £1.6m at the date of listing, to a position where it held net cash of £6.4m at 31 December last year.

At 31 December 2017, SimplyBiz had a net debt position of £23m.

The firm spent around £3.6m in fees in relation to the IPO process, the results reveal, but revenue is also up 15 per cent to £50.7m on the back of the IPO, the acquisition of surveying firm Landmark Surveyors Limited, and the launch of investment advice hub Centra.

The hub can be used to access the fund range of SimplyBiz-owned Verbatim Asset Management, but the main group’s results do not detail the flows into Verbatim or the profits derived from that arm of the business.

SimplyBiz added to its panel of partner firms advisers can work with on defined benefit pension transfers through 2018, after its initial partner, Selectapension, suspended its service the year before.

A fifth firm was added in June. The results do not indicate the revenue streams coming from the DB transfer work or the commercial arrangements between SimplyBiz and its partners.

The results do show that revenue from marketing services, where product provider brand and product communications are delivered to its members, increased 11.6 per cent to £6.9m.

SimplyBiz chairman Ken Davy says: “I’m delighted to report a strong performance for 2018, in a transformational year which saw the group’s successful admission to Aim and continued momentum in its organic and inorganic growth strategy.

“With our impressive revenue growth, well-supported by a number of structural drivers, the strength of the group’s regulation and capital light operating model is clearly demonstrated by a significant increase in EBITDA margin.

“The continued growth in membership numbers is testament to the value of our proposition as individuals and businesses continue to adapt to an increasingly complex and highly regulated intermediary market. Having successfully deleveraged the business, our balance sheet strength ensures we have a strong platform from which we can take advantage of the significant market opportunities we see.”

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