ULS Technology profits benefit from Legal Eye acquisition

A more stable housing market and a first real contribution from its Legal Eye acquisition has led to profits growing by a third at ULS Technology in the first half of the year.

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The online conveyancing technology firm saw revenue rise by 18.5% to £9.8m, with a substantial improvement in gross margin to 44.5% in the six months to 30 September.

ULS’s underlying operating profit stood at £1.9m - an increase of 32% - with an adjusted underlying earnings per share at 2.28p.

“This increase in revenue reflects both organic growth, realised through securing new conveyancing agreements, as well as the first six months' contribution from Legal Eye, which was acquired towards the end of the last financial year,” said chief executive Ben Thompson.

“Looking into the second half of the year, market conditions appear stable, as affordability constraints and increasing regulation are offset by increasing housing construction levels and increasing re-mortgage activity levels. We also have a growing pipeline of new business relationships”, he added.

ULS Technology announced an interim dividend of 1.05p per share, an increase of 5% on the previous six months.