Smoove publishes its interim results in its half-yearly report

The customer-focused technology and services business Smoove publishes its interim results in its half-yearly report.

Smoove plc, the customer-focused technology and services business aiming to revolutionise home-moving and ownership, announces its interim results for the six months ended 30 September 2022.

Financial highlights:
    • Revenue increased by 4% to £10.6m (H1 2021: £10.2m)
    • Gross margin of 38.4% (H1 2021: 40.0%) reflecting changes in business mix
    • Underlying Loss before Tax (before exceptional costs and impairments) of £(3.0)m (H1 2021: £(1.5)m) reflecting increased investment in eConveyancer and new product areas
    • EBITDA Loss of £(2.6m) (H1 2021: £(1.0)m)
    • Adjusted basic loss per share1of (4.6)p (H1 2021: (2.4)p)
    • Cash balance of £17.0m as of 30 September 2022 with no debt
Operating Highlights:
    • Success in developing eConveyancer remortgage segment – offsetting much of the market decline in the number of housing transactions
    • Significant progress in improving the eConveyancer user interface, part of a pipeline of measures to increase conversion and instruction volumes including the development of improved APIs
    • Launch of Smoove Start, the Group’s product for estate agents. 30 branches across 18 firms signed up, exceeding management expectations
    • Contracts agreed with nineConsultant Conveyancing Lawyers (“CCLs”) after the Period end enabling the launch of Smoove Complete
    • The Group undertook a number of cost reduction initiatives to align cost base with product development and growth strategy
    • Conveyancing instructions for the Period grew by 40% to 39,839 (H1 2021 28,497)
    • Conveyancing completions for the Period increased by 42% to 26,354 (H1 2021 18,600)
    • Volume growth was concentrated in lower yielding remortgage cases (+167% year-on-year)
    • Re-contracting with Lloyds Banking Group for the provision of conveyancing services for a further two years
    • Full integration of DigitalMove into our conveyancing offering, with DigitalMove now having successfully enabled over 100,000 transactions
    • Proposed tender offer to return up to £5m to shareholders to be launched as soon as practicable
Jesper With-Fogstrup, CEO of Smoove plc, commented:

“We have made significant progress in delivering key aspects of our strategy in the last six months.

“Our market leading conveyancing offer, eConveyancer, has performed well despite the volatility in the property sector in recent months as we have capitalised on increased remortgage activity. 

“We have at the same time invested in the development of the user interface which will create a more immersive and responsive experience for our partners with a view to increasing conversion and instructions.

“The roll out of Smoove Start, our digital solution for estate agents, has been particularly pleasing given the initial results and the important position they play in influencing decisions in the home ownership process. 

“With Smoove Complete we have an exciting opportunity to disrupt the conveyancing industry using our technical and conveyancing expertise to create a new model that benefits everyone.

“The economic climate has made trading conditions difficult, but we have been able to mitigate some of the impacts with our strong position in the remortgage sector. 

“Confidence in our products and services was reinforced as we secured the re-contracting with Lloyds Banking Group for the provision of conveyancing services for a further two years.

“The progress we have made both in eConveyancer and the new businesses of Smoove Start and Smoove Complete shows that we are creating touchpoints across all aspects of homeownership while diversifying our revenue streams.

“I am confident that we have the right strategy and plan in place to build on the successes of the first six months of this financial year.”

Capital Markets Day, Tuesday 22 November

The Company confirms that it will be hosting a Capital Markets Day on the afternoon of Tuesday 22 November 2022 at 2.30pm.

The event will be an opportunity to learn more about Smoove and its product portfolio. The team will also provide commentary on market trends and the broader opportunity.

Analysts and institutional investors are welcome to attend the event in the City of London and should contact [email protected] in order to register their interest.

Retail Investor Presentation

Management will be providing the same presentation and hosting a remote investor Q&A session for retail investors in due course. Investors can sign up for free and register to meet Smoove via this link. 

Investors who have already registered on the Investor Meet Company platform to meet the Company will automatically be invited.

 

Kindly shared by Smoove

Main photo courtesy of Pixabay