In the firm’s trading update for the six months ended 30 June, Simply Biz said a full revenue contribution from ratings firm Defaqto had helped to offset a signification reduction in the income earned from its valuation business due to lockdown restrictions.
In the update, the firm said: “The group’s mortgage valuation business has been significantly impacted by the lockdown restrictions in the second quarter, with volumes moderately increasing in June. Management believes that there will be a suppressed housing market for rest of the year.”
The group said its management team had quickly implemented a programme of initiatives which would deliver sustained efficiency and ongoing benefit for the business.
The EBITA profit margin has reduced from 27.2 per cent to 25.5 per cent.
The board does not intend to recommend an interim dividend for the current financial year.
Matt Timmins, joint chief executive of The SimplyBiz Group, said: “We are pleased to report strong trading for H1 2020, demonstrating the robust nature of our revenues and an improvement in the quality of our underlying earnings, offsetting a significant reduction of valuation income in the period. We reacted quickly to the Covid-19 lockdown and positioned the group to fully support the ongoing requirements of our customers and colleagues.
“Furthermore, this lockdown period has allowed us to accelerate our clear digital strategy which will further improve our quality of earnings, margin and cash generation going forward.”
The group intends to publish its interim results statement on 15 September.