London-listed service provider, SimplyBiz Group (AIM:SBIZ) , has more than doubled its annual profit on the back of its completed acquisition of financial technology business, Defaqto.
The UK-based provider of compliance and business services reported a 24% revenue increase to £62.8m from £50.7m for the twelve months ended 31 December 2019.
The rise reflects a first time £11.8m contribution from the acquisition of Defaqto since the date of acquisition on 21 March 2019 alongside £0.3m or 1% of organic growth, the group noted.
In its full year results released this morning, pre-tax profits grew from £4.2m in 2018 to £10.8m last year in what the joint chief executives said was another ‘significant’ 12 months for the company.
The group proposed a final dividend of 2.85p per share bringing the full-year dividend to 4.26p.
Shares in SimplyBiz were trading 10.44% higher at 193p during Tuesday trading.
"We are delighted to have successfully completed the strategic acquisition and rapid integration of Defaqto and welcome these new colleagues into the SimplyBiz Group,” said Matt Timmins, Joint Chief Executive Officer of SimplyBiz.
Timmins said the Defaqto acquisition, which has expanded the group’s customer base by over 50% as well as its software and service platform, had “enhanced the group’s strong and sustainable profit margins."
In a January trading statement, SimplyBiz pointed to organic company growth across 2019 compared to its previous year whilst excluding the overall impact through the acquisition.
The board said it maintains confidence and optimism for 2020 in marginally lower growth in revenues and EBITDA, particularly in employee benefits and valuations.
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