Acquisitions help to boost ULS amid flat housing market

Conveyancing and financial intermediary online platform provider ULS Technology updated the market on its for the 12 months ended 31 March on Thursday, saying it expected to announce financial results ahead of market expectations.

The AIM-traded firm said it was anticipating a revenue increase of 38% to £30.7m, and adjusted profit before tax improving 25% to £5.5m.

It said it again delivered the results in what had continued to be a challenging residential property market, with fewer properties for sale and increased affordability pressures combining to ensure that the overall volume of housing transactions remained at a relatively flat level.

The group said it was continuing to generate strong cash flow from its operating activities, with the board intending - subject to shareholder approval - to maintain its policy of paying a progressive dividend for the financial year.

“Despite the relatively flat market conditions, the group has continued to grow market share through both expanding its relationships with new business partners and deriving more business from existing partners,” the ULS board said in its statement.

“The group has also increased the number of lenders it works with, winning a number of new contracts.”

Conveyancing Alliance Holdings, which was acquired by ULS in December 2016, continued to perform well, ensuring that the group further strengthened its reach within both estate agents and smaller mortgage intermediaries.

The board noted that CAL had traded above its initial expectations over the year, and that planned synergies had been realised.

“Housing transactions in the UK market are expected to remain at current levels over the coming year.

“The group will continue to focus on increasing its market share of new conveyancing across all market segments,” the board explained.

It had begun the year with positive momentum, with new contracts won and increasing numbers of intermediaries using its platforms.

The group also continued to invest heavily in widening its product offering.

That had already enabled it to increase the number of lenders it worked with, and it expected that investment to enable it to win further contracts in the current financial year.

“We are pleased with this excellent performance and with the first full year's contribution from CAL,” said ULS chief executive Steve Goodall.

“It reinforces the validity of our strategy of organic growth together with carefully selected acquisitions.

“That we have achieved this in difficult markets is a tribute to the quality of our people and platforms.”

The company said it would announce its full year results for the year ended 31 March on 27 June.