ULS releases trading update
ULS Technology has released its financial results for the past 12 months with the publicly listed conveyancing platform firm expecting an underlying pre-tax profit of c.£4.8m (2019: £5.4m) and sales of c.£28.3m (2019: £30m).
The figures cover the 12 months to 31 March 2020 and reflects the uncertainty caused by Brexit and the General Election during 2019, and then the initial impact of COVID-19 during the past four to six weeks of the period.
Cash balances as at 31 March 2020 were over £2m, with the Company having fully drawn its bank facilities, resulting in a net debt position of c.£3.4m.
The firm continued to invest in DigitalMove following positive feedback from consumers, solicitors and introducers. Over 10,000 instructions from consumers, via introducers using eConveyancer, were processed through the platform during the period.
This week also saw the firm launch its ‘Rapid Remo’ product with the first instructions already received. The product has been in development for a number of months but its release is particularly timely in a remortgage dominated market.
The number of intermediary advisers using the group’s conveyancing comparison platforms increased by 18% to over 3,500.
ULS also continued to add new lender clients, notably the Principality Building Society. More recently, post period end, it was awarded a Conveyancing Service Agreement with a challenger bank and is currently in the process of onboarding another lender as a new client.
The firm said that the outbreak of COVID-19, had caused considerable uncertainty regarding revenue and profitability in the immediate future. However, it said it has sufficient cash reserves to allow it to continue to invest in its sales channels and product development so that it is well-positioned for when conditions improve.
Steve Goodall (pictured), chief executive of ULS Technology plc, said: “With the current effects of COVID-19 enforcing social distancing measures, DigitalMove’s remote applications, which enable conveyancing to be completed in a secure and paperless environment, should become increasingly attractive to conveyancers.
“We are experiencing increased interest in DigitalMove and we expect that interest to continue beyond the current circumstances.
“We believe that our long-term business model – driving sustained profitability, cash generation and continued investment into DigitalMove – means that the company remains well positioned for when market conditions improve.”