Acquisition and organic growth fuel first half at ULS

The AIM-traded company said it continued to trade well during the first half of the financial year, with revenue and profit before tax said to be ahead of the board's expectations for the period.

Revenue for the period was expected to be approximately 56% ahead of last year at £15.28m, with underlying profit before tax up around 42% to £2.74m.

Those increases were partly due to the acquisition of Conveyancing Alliance Holdings last December, but also due to organic growth in the remainder of the group, the board reported.

It said that growth was achieved against the backdrop of a housing market where overall transaction numbers continued to remain markedly below long-term averages.

Cash generation also continued to be strong, and net debt was reduced.

“There will be an exceptional charge of approximately £1.87m reported for the first half, which primarily relates to an upgrade in the estimated earn-out payable for the acquisition of CAL,” the board did note.

“This reflects the strong performance of CAL since its acquisition by the group.”

Looking ahead, ULS said it was continuing to win new contracts and had a “healthy” pipeline of new business which the board believed would enable the group to continue its strong performance during the second half of the current year, and increase its conveyancing market share.

“I have been very pleased with how the business has performed over this reporting period,” said chief executive Ben Thompson.

“We have continued to execute our strategy of increasing our market share in conveyancing. Although we have had success in pretty much all our market segments over the period, it is especially pleasing that we are gathering good momentum with mortgage lenders, a market segment that we are focused on achieving further success in.”

ULS Technology said it would announce its half year results on 28 November.