London-listed SimplyBiz (AIM:SBIZ) has seen revenues rise on the back of its completed acquisition of financial technology business, Defaqto.
The service provider reported a 24% increase in revenues and 50% EBITDA growth for 2019 after closing the £74.3m deal in March last year.
The integration of Defaqto has been successfully completed, the company informed investors, with the scale of the group now surging over 5,800 intermediary firms and over 350 financial institutions, altogether.
The group’s net debt position is £27.0m at 31 December 2019, which the company describes as ‘broadly in line’ with management’s expectations and representative of a comfortable net debt to EBITDA leverage ratio.
Shares in SimplyBiz Group were trading 1.30% lower at 230.95p on Tuesday morning.
“The acquisition significantly expands our customer base and breadth of proposition, whilst enhancing the Group's strong and sustainable profit margins,” said Matt Timmins, Joint CEO of The SimplyBiz Group.
Timmins highlighted that during the post-acquisition period, SimplyBiz was able to repay £7m of debt, “further deleveraging” the company.
This morning’s pre-close trading statement also pointed to organic company growth across 2019 compared to its previous year whilst excluding the overall impact through the acquisition.
"The Group's consistent and recurring income model, and strong forward revenue visibility, continues to provide the Board with confidence and optimism as we enter 2020,” added Timmins.
SimplyBiz is to publish its full year results on 10 March 2020.
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