AGM Statement
27/09/2022 07:00
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RNS Number : 7108A Smoove PLC 27 September 2022
Smoove plc
(The "Group", "Smoove" or the "Company")
AGM Statement
Smoove plc (AIM: SMV), the customer focused technology and services business
aiming to revolutionise home moving and ownership, announces a trading update
ahead of holding its Annual General Meeting ("AGM") at 14.00 today. The result
of the AGM will be announced on the conclusion of the proceedings.
Current Trading
Instructions and completions through eConveyancer increased by 29% and 42%
respectively for the 5 months to 31 August 2022 compared to the previous
corresponding period. This strong growth is primarily in the remortgage
segment and demonstrates the depth of the Group's relationships with its
introducers and its ability to capture market growth in the remortgage
segment. This change in business mix away from higher margin purchase and sale
cases means that the Group's average yield per completion will be lower
year-on-year. The net effect is that the Group's gross profit for the first
5 months of trading is unchanged compared to the prior year.
Following the cost reduction initiatives announced at the presentation of
annual results last month, cash burn is moderating. Net cash as at 31 August
2022 was £16.9m.
Growth initiatives
The Board continues to focus on broadening its end user base beyond the
first-time buyer market. It is also seeking to increase touch points and
efficiencies across the home moving and ownership process with a view to
becoming a one stop shop for everyone involved.
Specific initiatives are starting to bear fruit as evidenced by the volume of
new clients and users utilising the eConveyancer platform, with L&C
Mortgages and Just Mortgages among a number of additions during the first
quarter. Smoove Start, a digital platform that reduces the administrative
burden of the onboarding process is currently being rolled out to estate
agents with the number of contracted firms signing up for the service ahead of
plan and providing an opportunity to cross sell the Company's conveyancing
services.
Outlook
The Board anticipates that the recently announced changes to stamp duty
thresholds will help more people get on the property ladder which should in
turn positively impact the Group given its strength in the first-time buyer
segment of the market.
Additionally, the Group has several growth drivers that underpin the Board's
confidence in the future. By diversifying its portfolio of products and
services, the Company's revenue profile will become less reliant on
eConveyancer whilst also benefitting from increased cross selling
capabilities.
Enquiries:
Smoove plc Via Walbrook PR
Jesper With-Fogstrup, CEO
Michael Cress, CFO
Panmure Gordon (UK) Limited (NOMAD and Broker) +44 (0)20 7886 2500
Dominic Morley
Erik Anderson
Walbrook PR Limited smoove@walbrookpr.com or Tel: 020 7933 8780
Tom Cooper/ Nick Rome
About Smoove:
Smoove's (hellosmoove.com) mission is to revolutionise the home moving and
owning process for everyone involved. The Company's cornerstone cloud-based
platforms provide significant leverage for growth with strong, established
client bases and routes to market - including mortgage brokers, conveyancers,
estate agents and lenders.
eConveyancer ( https://econveyancer.com/ (https://econveyancer.com/) ) is one
of the leading distribution channels for conveyancing in the UK, bringing
consumers and legal professionals together via comparison services, which
provide solutions for home movers and the re-mortgage market.
The Company's existing platforms have been designed with a view to adding
services and reach and the Company is well placed to create exponential
returns as functionality increases.
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