ULS Technology (ULS) is clearly doing something right. In a housing market where transaction volumes fell by 13 per cent, ULS grew volumes by 4 per cent; testimony to its ability to increase market share.
ULS operates an online business-to-business platform used by the likes of Lloyds Banking Group (LLOY) and TSB to help potential housebuyers through the process. Solicitors sign up to the platform and pay a commission to ULS for any work they pick up. Further conveyancing contracts were secured with two mortgage lenders in the period.
As well as organic growth in its core conveyancing service, ULS has also been making acquisitions, taking a 35 per cent stake in HomeOwners Alliance (HOA) and more recently buying Conveyancing Alliance Holdings. Both these offer ULS a route to customers in the estate agency conveyancing sector. It has also embedded one technology platform into HOA that compares the performance of traditional and online estate agents.
Analysts at Numis Securities are forecasting adjusted pre-tax profits for the year to March 2018 of £5.2m and adjusted EPS of 6.1p (from £4.3m and 5.5p in 2017).
ULS TECHNOLOGY (ULS) | ||||
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ORD PRICE: | 122.25p | MARKET VALUE: | £79m | |
TOUCH: | 122.25-125p | 12-MONTH HIGH: | 130p | LOW: 62p |
DIVIDEND YIELD: | 1.8% | PE RATIO: | 28 | |
NET ASSET VALUE: | 14p* | NET DEBT: | 38% |
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 | 1.3 |
2016 | 20.7 | 3.1 | 3.7 | 2.1 |
2017 | 22.3 | 3.5 | 4.4 | 2.2 |
% change | +8 | +12 | +19 | +5 |
Ex-div: 6 Jul Payment: 4 Aug *Includes intangible assets of £18m, or 28p a share |