27th Sep 2022 15:21
(Alliance News) - Smoove PLC on Tuesday said it expects profit during the first five months of its financial year 2023 to be flat, as it transitions away from higher margin purchase and sale cases.
Smoove was formerly known as ULS Technology before it rebranded and changed its name earlier this year. The Thame, Oxfordshire-based company provides online services for conveyancing and financial intermediary markets and is best known for its conveyancer comparison platform eConveyancer.
Its shares were down 35% to 31.30 pence each in London on Tuesday afternoon.
Smoove said that instructions and completions through eConveyancer increased by 29% and 42%, respectively, in the 5 month period to August 31 compared to the same period last year.
"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," it added.
However, the company said that this transition away from higher margin purchase and sale cases means that its average yield per completion will be lower year-on-year. As a result, profit during the period is expected unchanged from last year.
Looking ahead, Smoove expects the recently announced changes to stamp duty thresholds to have a positive impact the company, particularly given its "strength" in the first-time buyer segment of the market.
On Friday, the UK chancellor Kwasi Kwarteng announced a "permanent" cut to stamp duty.
By Sophie Rose; [email protected]
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