31st Oct 2018 11:07
LONDON (Alliance News) - ULS Technology PLC shares dropped on Wednesday as the online platforms provider for the UK conveyancing and financial intermediary markets warned about the impact of a slowdown in the UK housing market on its second half results.
ULS shares were trading down 22% at 85.00 pence each.
ULS said that market data showed that the UK housing market has slowed further, with UK Finance reporting a 10% drop in high street bank mortgage approvals for house purchases in September, compared to the prior year.
"This slowdown may well be short lived but it is likely to have some impact on the group's second half results," said ULS, which blamed Brexit uncertainty among other factors for the market volatility.
Meanwhile, for the six months ended September 30, ULS said it expects revenue to have increased 3% year-on-year to GBP15.8 million from GBP15.3 million. Adjusted pretax profit is expected to grow 7.4% to GBP2.9 million from GBP2.7 million.
The growth was achieved despite a 4% fall in the number of housing transactions across the UK market for the period, the company said.
Chief Executive Officer Steve Goodall said: "I am pleased with the continued growth in revenue and profitability of the business in the first half of the year especially given the difficult market conditions.
"The short-term macroeconomic outlook is not helpful but we will continue to look to grow market share while also investing for future growth."
ULS will publish its full results for the first half of the year on December 3.
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