Smoove Share Discussion Threads

[masurenguy] 04/5/2023 14:10

Shareprice up by over 50% over the past 2 weeks since rumours started about a possible predator, which was subsequently confirmed on 24 April. Suggests some investors believe that a deal is a likely outcome but that also this might be rerated even if an offer is not forthcoming or is turned down.

[masurenguy] 02/5/2023 06:13

Trading Update

Smoove is pleased to announce an unaudited trading update for the 12 months to 31 March 2023.

Financial and Operational Highlights

-- The Company continued to trade in line with the Board's expectations during the Period, whilst investing in its product suite and routes to market

-- c.7% increase in revenues to c.GBP21m (2022: GBP19m)

-- Conveyancing completions in the Period grew 44% to 53,224 (2022: 36,965). This is composed of transactional completions of 18,382 (2022: 21,837) and remortgage completions of 34,842 (2022: 15,128)

-- Conveyancing instructions in the Period grew 5% to 69,976 (2022: 66,394). This is composed of transactional instructions of 26,877 (2022: 35,917) and remortgage instructions of 43,099 (2022: 30,447)

-- Year-end cash balance of c.GBP10m (2022: GBP20m) reflects ongoing planned investment and the return of GBP3.65m to shareholders in January 2023

-- New eConveyancer relationships with Mojo, Legal & General, Chimnie, Adviser Services Holdings, and Unbiased

-- Release of new eConveyancer user interface generated positive feedback. Release of new APIs is expected to deepen integration with introducers

-- 12 Consultant Conveyancing Lawyers ("CCLs") now signed up to Smoove Complete, in line with management expectations

Both transactional and remortgage instructions fell sharply in Q3 following the government's minibudget on 23 September 2022, but recovered significantly throughout Q4 FY23. Furthermore, the growth in remortgage volumes throughout the period was enhanced by the expansion of the Lloyds Banking Group relationship late in the previous financial year to include remortgage products.

Growing Product Range and Routes to Market

Strong progress for Smoove Complete, the Company's platform for self-employed CCLs, which launched in late October 2022, is reflected by the fact that there are now 12 CCLs contracting with the platform. This is in line with management expectations - reinforcing the Board's belief in the strong demand amongst conveyancers for the proposition and the large addressable market.

The Company released the new eConveyancer user interface late in the Period to selected users, who have responded with very positive feedback. The new interface provides a significantly improved user experience and is intended to reduce conversion friction and also increase usage and instructions from mortgage brokers, lenders and other Introducers. At the same time, the Company has released new APIs that will allow for easier and deeper integration with partners' systems to access a greater pool of instructions.

Smoove Start, which targets estate agents has been refocused to emphasise the fee earning potential for estate agents through referral of cases to eConveyancer. This change of emphasis is in response to uncertainty in the housing market following the Government's minibudget and will involve lower support costs for Smoove Start as the software offering for ID, AML checks and upfront information is paused.

Outlook

As noted above, the Company saw significant volume improvements during Q4 FY23, which have continued into the current year. The outlook for FY24 profit is in line with the Board's expectations but with a different composition than previously expected. In particular, the Company's cost base has been reduced further in response to the changed macroeconomic environment, whilst expansion in the cost base to support new businesses, such as Smoove Complete, will be calibrated to the revenue growth of those businesses. The Board expects the Company's cash burn to significantly reduce in the current financial year.

The Company remains focused on executing a strategy that will broaden routes to market and provide greater diversity and resilience to revenue. The development of the eConveyancer user interface and APIs aims to expand the revenue potential of the Company's already strong relationships with mortgage brokers and lenders, as well as enable new Introducer channels. Smoove Complete opens up a new revenue stream of conveyancing fee income and capitalises on strong demand for a self-employed consultant model. This approach will enable the Company to generate positive returns across a variety of market conditions whilst delivering a better experience to consumers and industry stakeholders.

Jesper With-Fogstrup, Chief Executive of Smoove plc, commented: "While last year was not without its challenges, we repositioned where necessary while the successful launch of new products added to our flexibility and resilience. The upswing during Q4 FY23 was testament to the strength of our model as we successfully grew the number of instructions and completions. We remain extremely excited by the growth opportunity and confirm that our outlook for FY24 is in line with the Board's expectations."

[red ninja] 30/4/2023 10:31

I take your point, but your header says 5 April 2023 and the company's website says 26th April 2023.

Note, either I misread that date or you have updated it.

[masurenguy] 30/4/2023 10:29

The thread Header was already updated with this information several days ago!

[red ninja] 30/4/2023 10:19

The main shareholder information was updated on 26th of April on company website :-

[earwacks] 26/4/2023 14:34

Lol .e be hundreds more RNS with all the major holders coming out of the woodwork. I dont remember this many institutions being in it. Think it shows how many people saw and see much value here even if the market doesnt.

[paulsavannah] 26/4/2023 12:09

Apologies didn't realise there was another RNS.5PM 22 of May

[paulsavannah] 26/4/2023 12:06

What date is the deadline?

[sidam] 26/4/2023 09:26

At least we will know quite soon with the deadline.

[earwacks] 26/4/2023 09:03

Yes deep pockets Simon.also they are in the same line of business, digital property transaction and remortgages. Smv must have something very valuable to them, so hopefully they will value their software for what it is really worth. Many multiples of 12 million I would think.

[simon gordon] 26/4/2023 06:33

Pexa's market cap is AUSD 2.38bn.

[yump] 25/4/2023 09:09

What we don’t need is some sort of PE deal where major shareholders somehow get stakes in the acquiring business, or some sort of options and benefit in a few years. That would technically be against various market rules afaik, but these smaller companies are never pursued by authorities.

A straightforward cash offer is ok at the right level, but it guarantees that another promising business disappears from UK and any growth potential is taken away from earlier investors.

[earwacks] 25/4/2023 08:55

I don’t believe they do want to sell. Just opportunities hoping to take advantage of depressed market. Most predators buy cash cows not start ups. TU due end of month. The share price crash to 20’s was thanks to Truss’s brief reign of stupidity, like many mortgage companies. Remortgaging was supposed to offset decline in house sales.anything that can disrupt our archaic house buying system should be a winner. This is not purple bricks, this an all round house buying facility made simpler and cheaper. Unfortunate timing but if they survive the downturn reasonable intact they have a great blueprint and no debt with cash in the bank amounting to half market cap. A software business like this must be worth many multiples of 12 million especially when you think what our government tossed away on track and trace software that didn’t even work!

[masurenguy] 25/4/2023 07:26

Hmmm......why would they want to sell the business at this stage when development is still ongoing with Smooth Start and Smoove Complete just launched, the recent buy back of 12.5m shares for £5m and £12m in cash at the bank. I could only imagine that it either has to be based upon an offer 'that's too good to refuse' or else I have completely missed some significant problem or difficulty in their current progress as an independent entity?

[red ninja] 24/4/2023 18:27

I seem to remember Kestrel buying North of 80p

[red ninja] 24/4/2023 18:25

Viper
Was at work today.

I hope the funds stand their ground and don't bail for a substandard deal.
We'll see these things can often fizzle out.

[sidam] 24/4/2023 13:03

In theory anyone can bid whatever price they want to, but with Kestrel owning over 25% I would suggest the would want a recommendation from the board. Any bidder could of course do a side deal with Kestrel, but they would need to be very careful. Kestrel last paid 49p in January and I would suggest that would not like to take a loss on that so quickly. If the board want to recommend acceptance, they must take advice from their NOMAD. Given that the recent stock option plan had a low target of 55p, I would think that the NOMAD would find it hard to recommend a bid lower than that. Here’s hoping.

[earwacks] 24/4/2023 12:30

I cant imagine they need cash right now. I Cant imagine Ruppee Bear wants to take a loss. So either the Aussie is going to have to make substantially improved off er on current valuation or maybe some other deal is a possibility. The board are obliged to act in the best interest of shareholders. The question is which ones. The ground work has been pretty much established. Shame about the timing. They said this year would be flat but they must have hade some sales and a considerable amount of remortgaging and valuations. How about an update? This is a business with fabulous potential. Impossible to say at this stage where the housing market is heading. Prices dont seem to have dropped that much. Sales have obviously dropped off considerably. There simply are nowhere near enough housing stock now or future new builds. I cant see anyone paying much of a premium for a business which is obviously in limbo. I cant see them being able to accept an offer that is not in the best interest of shareholders. I would
‘Nt think they need a partner as they dont or shouldnt need cash. Maybe a lot of chancers out there chasing a bargain deal. I would hope they get a sensible offer that acknowledges the potential here or otherewise pi ss o ff

[value viper] 24/4/2023 12:11

50p possibly 60p as a guess IF a deal can be agreed - NRI and clearly there are no guarantees

[value viper] 24/4/2023 11:00

Red - where r u mate ?

[simon gordon] 24/4/2023 10:37

TRB to go next?

[ridingthewaves1] 24/4/2023 10:33

That doesn't deserve a 35% rise

[simon gordon] 24/4/2023 10:08

SKY News - 24/4/23:

Software company Smoove set to join London stock market exodus

A producer of software for estate agents and conveyancers has received a string of takeover approaches which could result in its delisting from the AIM market, Sky News understands.

A conveyancing software maker is in talks to join the growing exodus of companies from the London stock market.

Sky News has learnt that AIM-listed Smoove has received several takeover approaches from unnamed suitors.

City sources said on Monday that the company was engaged in discussions with at least one prospective buyer.

Smoove is a minnow in market capitalisation terms, with a valuation of less than £20m.

It says its mission is to "revolutionise home-moving and ownership", and had sales of just over £10m in the first half of its financial year.

The company made a pre-tax loss of £3m in the six months to 30 September.

Nevertheless, the news that it has received bid approaches adds its name to the queue of London-listed companies in talks about takeovers.

[red ninja] 21/4/2023 10:02

Viper,

I was the first buyer today, bought back some that I sold to the company in their open offer for about 8p cheaper.