ULS Technology swing to FY loss despite trading ahead of expectations in H2

IT services group ULS Technology said on Tuesday that it had traded ahead of management expectations in the twelve months ended 31 March.

ULS expects financial results for the year to exceed expectations, with the second half being particularly strong as the housing market "materially improved" following the easing of lockdown restrictions and a "significant recovery" in volumes from the group's broker channel also helped drive outperformance.

Revenues in the second half came to approximately £10.6m, a marked improvement on the £6.3m recorded in the first six months of the 2021 trading year, resulting in total revenues of £16.9m for the year.

However, this figure was down from £20.7m a year prior and, as a result of both the lower revenues and "a significant investment" in DigitalMove, the AIM-listed group now expects to swing to an underlying pre-tax loss of £800,000 from underlying pre-tax profit of £2.4m.

Chief executive Jesper With-Fogstrup said: "Since joining the company I have been hugely excited by the significant opportunity that exists both in our existing eConveyancer business and with DigitalMove to make the home moving and owning experience better for all those involved, in particular, the consumer.

"We have significant cash funds and we intend to invest them efficiently in rapidly building solutions for the housing market and legal conveyancing community, improving the home moving experience, unlocking efficiencies and revenue earning opportunities across the process."

As of 0915 BST, ULS shares were up 2.05% at 97.96p.