Support service provider SimplyBiz has managed to improve its profits despite lower revenues during Covid-19 after a cost-cutting drive.
Results for the six months ended 30 June 2020 released this morning show SimplyBiz’s revenue dipped slightly from £29.1m to £28.9m, but operating profit came in at £5m, up from £3.2m.
The company says it has executed a plan of “decisive cost control and efficiency improvement”.
These included “the utilisation of certain UK government assistance packages” to the tune of £0.8m.
Despite the cost control, the firm’s profit margin, measured on an EBITDA basis, ticked down to 25.5 per cent from 27.5 per cent.
The firm does have less net debt that a year ago, at £25.8m compared to £30.1m, but the cost of that financing has still crept up from £562,000 to £666,000.
On 21 March 2019, SimplyBiz repaid debts of nearly £25m owed by Defaqto after acquiring the research firm.
It paid £2.6m in professional fees during the acquisition and £400,000 in termination costs.
SimplyBiz is one of many listed companies that will not be paying out a dividend to shareholders in the light of Covid-19, a decision it has confirmed today, but says it will provide an update on next year’s payout in January.
Joint chief executive Matt Timmins says: “The quality of our revenues, the resilience of our customers, and the benefits of a stronger digital delivery platform have enabled strong trading during challenging times. We have responded quickly and decisively to deliver growth in key strategic areas, whilst improving the quality of our underlying earnings.
“We have accelerated our digital strategy. This data led, digital delivery, will further improve our quality of earnings, margins and cash generation going forward, whilst also improving customer service.”
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