The Simplybiz Share Discussion Threads

[masurenguy] 31/3/2020 13:28

Today's 3.5% fall based upon a volume of just 13,500 shares at 1.25pm. I added a few @140p, which is shown as a Sell.

[masurenguy] 12/3/2020 12:35

Todays 12% fall is on a trading volume of under 40,000 !

[davebowler] 10/3/2020 15:39

Zeus;
Results show quality growth
What’s new: SimplyBiz’s full year results, reveal:

§ 12.5% growth in Intermediary Services revenue (ex discontinued) to £24.2m (Zeus forecast £24.0m) and £5.6m to Group adj EBITDA (i.e. 23% margin);

§ 2.2% fall in Distribution Channels revenue to £26.8m (Zeus forecast: £26.4m) and contributing £6.5m to Group adj EBITDA (i.e. 24% EBITDA margin);

§ Acquisition of Defaqto delivered £11.8m of revenues and contributing £4.9m to Group adj EBITDA (i.e. 41% EBITDA margin);

On 28 January 2020, SimplyBiz’s trading update noted:

§ 24% rise in Group revenues (2019: £62.8m; 2018: £50.7m);

§ 49% rise in adj EBITDA (2019: £17.0m; 2018: £11.2m inc R&D amortisation);

§ Strong adjusted EBITDA margin of 27% (2018: 22%);

§ Group net debt at end 2019 was £27.0m (30 June 2019: £30.1m).

Outlook: Matt Timmins, Joint CEO, said “The Board is confident and optimistic about 2020 …[and is] guiding to marginally lower growth in revenues and EBITDA, particularly in employee benefits and valuations, with operational gearing flowing through to earnings … both headline and underlying growth to remain strong.”

Zeus view: SimplyBiz’s Intermediary Services division and Defaqto (9 months since acquisition), which both enjoy very high levels of recurring revenues, have delivered on our expectations. We maintain our revenue and EBITDA forecasts for these two divisions. 2020 will benefit from a full year contribution from Defaqto.

The Distribution Channels division has experienced good growth in Mortgage Origination but experienced a fall in activity in Valuations and lower than forecast growth in Marketing Services. We have trimmed our revenue and EBITDA forecasts and included share based payments in adj EPS forecasts.

We cut our forecast revenue 3%, adj PBT 8% and adj EPS 12% (see exhibit 1). Our DPS forecasts are based on 3x dividend cover.

Valuation: At 175p SBIZ is trading on 12.7x our new forecast adj EPS in share based payments for 2020 of 13.8p.

We expect SimplyBiz to provide investors with higher than market earnings growth and have defensive qualities.

With prospects of 12% pa earnings growth over the next 2 years, a valuation of 16x Zeus forecasts 2020 adj EPS of 13.8p (i.e. 220p) is, in our opinion, credible.

[nick_dunton] 10/3/2020 12:43

Director buys now.. not sure if exercising some options or buying with own cash tho

[melody9999] 10/3/2020 08:00

With revenue up 24% and EBITDA up 49%....the 2020 guidance of marginally lower growth leaves plenty of room for another good year.

[masurenguy] 10/3/2020 07:19

Excellent results !

SimplyBiz (AIM: SBIZ), announces its audited results for the twelve months ended 31 December 2019.
Strong growth in revenue, adjusted EBITDA and adjusted earnings per share

Financial highlights:

-- Group Revenue up 24% to £62.8m (FY18: £50.7m)
-- Operating profit increased by £5.2m to £12.0m
-- Adjusted EBITDA*(1) up 49% to £17.0m (FY18: £11.4m)
-- Adjusted EBITDA*(1) margin increased to 27.1% from 22.5%
-- Adjusted earnings per share (EPS) *(1) increased by 15% to 13.4p
-- Net debt £27.0m at 31 December 2019, comfortable to adjusted EBITDA ratio of less than 1.6 times.
-- Final dividend proposed of 2.85p per share, resulting in a full year dividend of 4.26p per share.

Operational highlights:

-- Successful strategic acquisition of Defaqto
-- Strong progress on software development and deployment
-- Strong growth in value per intermediary customer
-- Strong increase in mortgage completions
-- Strong cost control maintaining strong operating margin

Matt Timmins, Joint Chief Executive Officer of The SimplyBiz Group, commented: "We are delighted to have successfully completed the strategic acquisition and rapid integration of Defaqto and welcome these new colleagues into the SimplyBiz Group. This acquisition instantly expands the Group's customer base by over 50% and materially extended our software and service platform across all key sectors. The acquisition enhances the Group ' s strong and sustainable profit margins. The Board is confident and optimistic about 2020. We are guiding to marginally lower growth in revenues and EBITDA, particularly in employee benefits and valuations, with operational gearing flowing through to earnings. We expect both headline and underlying growth to remain strong."

[masurenguy] 02/3/2020 16:00

SBIZ has fallen 20% over the last 6 trading sessions on roughly average daily trading volumes. This is not a stock that should be particularly vulnerable to any CV disruption so there could be some potential value available here when the price finally bottoms out.

[masurenguy] 07/2/2020 08:26

Peel Hunt issued a Buy recommendation this morning with a price target of 250p.

[masurenguy] 30/1/2020 08:59

SimplyBiz shareholders should appreciate double-digit earnings growth

[quant_investor] 28/1/2020 09:00

.Broadly inline with expectations. is directorspeak for a mild profit warning. Sold out first thing at yesterday’s close. May re-enter after the results are out of the way.

[gswredland] 28/1/2020 08:10

This reaction happens a lot with sbiz. Good news and big fall..

[scrapheap] 28/1/2020 07:46

I notice "The Group's consistent and recurring income model, and strong forward revenue visibility, continues to provide the Board with confidence and optimism as we enter 2020."

As a member of SimplyBiz, I would caution that their annual fees escalator - 5% or inflation whichever is higher - is unsustainable.

We'll have to leave them at some point because of it, the only question is when.

hxxps://www.simplybiz.co.uk/join-simplybiz/how-to-join-simplybiz/

[insideryou] 14/1/2020 14:04

He sold out

[nw99] 13/1/2020 12:20

The turnaround is on

[nw99] 13/1/2020 11:26

Chart looks good bought in here

[buying] 10/1/2020 12:21

Bought back in as well. Are final results due in March?

[nw99] 10/1/2020 11:31

A good entry point bought back in

[masurenguy] 23/12/2019 08:45

A nice narrow spread is a positive sign !

[gswredland] 23/12/2019 08:26

Shortage of stock?

[masurenguy] 20/12/2019 11:15

Pushing ahead nicely with the Offer up to 242p at 11.00 this morning

[masurenguy] 19/12/2019 16:48

Nice 4% rise on the offer price today which opened at 225.7p and closed at 234.7p on a very modest volume of circa 35K.

[gswredland] 06/12/2019 16:35

He was already in but has bought more!

[masurenguy] 06/12/2019 10:21

Well, since he appears to have a lot of followers, that can only be a positive for the shareprice !

[mobtheplod] 06/12/2019 09:50

Robbie Burns has bought in!

[mastermatto] 06/12/2019 09:36

Not sure why you created a new thread.

Looking forward to a trading update on this. Need that to push us out of this holding pattern.