According to its latest trading update, Smoove said that remortgage completions rose to 34,842 from 15,128 last year.
The company added that conveyancing instructions had grown by five per cent to 69,976, with around 61 per cent coming from remortgage instructions. The remainder came from transactions instructions.
Smoove partially attributed the growth in remortgage volumes to the expansions of Lloyds Banking Gorup’s relationship at the tail-end of last year to include remortgage products.
The firm added that its revenues increased by around seven per cent year-on-year coming to c.£21m.
Smoove continued that its year-end cash balance was around £10m, which is half of last year’s figure, which it said was due to “ongoing planned investment” and the return of £3.65m to shareholders in January.
‘We remain extremely excited by the growth opportunity’
Smoove said that there had been “significant volume improvements” during Q4, which it said had continued into the current year.
The firm said that the outlook for full-year 2024 profit was “in line” with the board’s expectations but the composition would be different.
The company said, on the one hand, its cost base had fallen due to the “changed macroeconomic environment” while on the other hand the cost base has expanded to support new business such as Smoove Complete.
It added that it expected cash burn to “significantly reduce in the current financial year”.
Smoove said it “remains focused on executing a strategy that will broaden routes to market and provide greater diversity and resilience to revenue”.
It pointed out that the development of the eConveyancer user interface and APIs aims to “expand the revenue potential” of its relationships with brokers and lenders, and to allow new introducer channels.
The company added that Smoove Complete, the company’s platform for self-employed consultant conveyancing lawyers that launched in October, would open up a new revenue stream of conveyancing fee income and “capitalises on strong demand for a self-employed consultant model”.
It continued that around 12 CCLs were contracting with the platform, and added that it believed there was “strong demand” and a “large addressable market”.
“This approach will enable the company to generate positive returns across a variety of market conditions whilst delivering a better experience to consumers and industry stakeholders,” the company said.
Jesper With-Fogstrup (pictured), Chief Executive of Smoove plc, commented: “While last year was not without its challenges, we repositioned where necessary while the successful launch of new products added to our flexibility and resilience.
“The upswing during Q4 FY23 was testament to the strength of our model as we successfully grew the number of instructions and completions. We remain extremely excited by the growth opportunity and confirm that our outlook for FY24 is in line with the board’s expectations.”
