Smoove, (SMV), a property-focused tech and services company, announced its results for the 12 months ending March 2023. Despite market uncertainty, the company achieved operational advancements and met board expectations, while investing in its product suite and routes to market.
The company reported a 7.4% revenue increase to £20.6 million. However, it fell to an underlying EBITDA loss of £4.8 million due to investments in core businesses and new products. The underlying loss before tax was £5.6 million, with a statutory loss before tax of £5.8 million.
Operational highlights included a new eConveyancer user interface and APIs, driving integration with introducers. DigitalMove saw 85% of applicable cases enabled, and remortgage growth was significant, supported by Lloyds Banking Group's new product line.
During the period, conveyancing completions increased 44% to 53,224, with 5% growth in conveyancing instructions to 69,662. Smoove also secured key contracts, such as Mojo, Legal & General, Chimnie, and Unbiased, and shifted its sales approach to a conveyancing-led offering.
Post-period, Smoove partnered with Mortgage Advice Bureau, expanding market reach and providing conveyancing comparison services. Additionally, 18 self-employed Consultant Conveyancing Lawyers were contracted through Smoove Complete.
Jesper With-Fogstrup, Chief Executive, commented: "The financial year ended 31 March 2023 was another volatile period, presenting both opportunities and challenges. The growth in our remortgage volume demonstrates our ability to adapt to market conditions while the development of a new user interface and APIs for eConveyancer provides a strong platform for future growth of that business. Smoove Complete's early results are promising and suggest latent demand among conveyancers for a way of working that is flexible, innovative, and customer focused."
View from Vox
Smoove has shown strong resilience in the period, being able to adapt to changing demands, namely, pivoting from favorable conditions in the first half of the financial year, to a sharp decline in market activityduring Q3 FY 23, which was then contrasted again with some recovery in the final quarter, as consumers began adjusting to the new normal of high-interest rates.
Against this backdrop, its three business segments have seen varying degrees of success, with Smoove Start, an online platform that helps estate agents onboard clients at the early stages of the home-buying and selling process, impacted by market conditions following mini-budget after its launch in August 2022.
Smoove’s most well-known segment - its eConveyancer platform - offers online digital platforms for the conveyancing and financial intermediary markets. Its third major segment, Smoove Complete, is a platform for self-employed Consultant Conveyancing Lawyers , offering a share of the conveyancing fee income along with a suite of services, including onboarding, post-completion support, and technology infrastructure.
In relation to it’s eConveyancer platform, this meets a clear need in the current market, given that first-time buyers made up the largest proportion of property purchasers last year. If this pattern continues, there should be an increased demand for Smoove to help ease the home moving and owning process for unfamiliar first-time buyers.
Looking ahead, future prospects for Smoove look promising, with new business development, increasing yields in its eConveyancer platform as well as the growth potential of new businesses such as Smoove Complete.
Follow Smoove for more News and Updates: