ULS Technology (ULS) operates a technology platform used by many leading companies such as Lloyds Banking, the Halifax and others involved in the buying and selling of houses. It makes the bulk of its money by charging solicitors a fee for business put their way. The platform comprises a number of services that would interest a customer, and ULS has been expanding the number of sites on its platform, with the ultimate aim of directing more business towards conveyancing.
Recent acquisitions included Legal-Eye, which provides compliance services to law firms, and is indicative of the drive to acquire more routes into conveyancing contracts. It also took a 35 per cent stake in HomeOwners Alliance, a website offering services to prospective homeowners. ULS has now launched its eConveyancer product through the website, with early successes. Other facilities will offer an estate agent comparison site, energy providers and even a will writing comparison site.
Much is being made of the impact of Brexit on the property market. Chief executive Ben Thompson remained relatively sanguine in the wake of the vote, pointing out that the possibility of lower interest rates could boost remortgaging activity, while ULS is well placed to generate earnings by increasing its market share.
Analysts at Numis have upgraded their forecasts for the year to March 2017 to pre-tax profits of £4m (from £2.9m in FY2016), giving EPS of 4.7p.
| ULS TECHNOLOGY (ULS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 63.5p | MARKET VALUE: | £41m | |
| TOUCH: | 63.5-64.75p | 12-MONTH HIGH: | 74p | LOW: 48p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 11p | NET CASH: | £2.9m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 16.3 | 2.3 | na | nil |
| 2015 | 16.1 | 1.5 | 1.8 | 1.34 |
| 2016 | 20.7 | 3.1 | 3.7 | 2.1 |
| % change | +28 | +104 | +105 | +57 |
Ex-div: 7 Jul Payment: 5 Aug *Includes intangible assets of £7.5m, or 12p a share | ||||
