Trading Update and Notice of Results

RNS Number : 2311S

ULS Technology PLC

05 November 2019

 

ULS Technology plc

(The "Group" or the "Company")

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, is pleased to provide a trading update ahead of its Half Year Results for the six months to 30 September 2019.

Financial Highlights

During the first half of the financial year the Group continued to trade robustly in a difficult housing market and profit before tax during the period was in line with the Board's expectations. The Company has concentrated on higher margin segments of the market and has continued to invest in its key products, which will allow growth to accelerate over time.

As a result, underlying profit before tax for the period was similar to last year at £2.8m with revenue, as expected, approximately 9% down. The Group continues to generate strong cash flow which enables the payment of a progressive dividend for this half year period.

Outlook

The Group has a strong distribution network, is highly operationally geared and remains well placed to generate significant returns as the market improves.

The focus remains on developing high margin routes to market with the continued roll out of the Company's new flagship product, DigitalMove. To date, DigitalMove has received strong positive feedback and is proven to have significantly reduced transaction times and it is being rolled out across our customer base. DigitalMove is expected to start contributing directly to revenues during the next financial year. The roll out of DigitalMove will enable the Company to optimise commercial opportunities within its existing client base in addition to enabling it to target non-ULS cases - providing a potentially significant new revenue stream.

Notice of Results

The Company will announce its Half Year Results on 03 December 2019 and will hold an analyst briefing at 9.30am at Walbrook PR's offices on that day. Analysts wishing to attend the briefing should telephone Walbrook on 020 7933 8780 or email [e-mail]

Steve Goodall, Chief Executive of ULS Technology plc, commented:   

"In a difficult operating environment, the Group remains highly cash generative and continues to maintain good profit margins. At the same time, we continue to invest in developing DigitalMove, which we believe will revolutionise the conveyancing experience for all parties involved in the process while further enhancing margins and growth opportunities. Early feedback has been extremely positive, and we will continue to accelerate the development to ensure that we establish ourselves as market leaders in this new area. We believe we are well placed to transform the industry on the back of our continued investment into DigitalMove, and given our proven capabilities, are primed to scale up quickly within our existing customer base and beyond as and when conditions improve."

   Enquiries:

ULS Technology plc		Tel: [phone]
Steve Goodall, CEO
John Williams, Finance Director
Numis Securities Limited (Nomad & Broker)		Tel: [phone]
Stuart Skinner / Paul Gillam
Walbrook PR Limited	[e-mail] or Tel: [phone]
Nick Rome/Tom Cooper

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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