Simon Thompson 

SimplyBiz’s earnings growth underpriced

Simon Thompson

Simon Thompson

In the first quarter this year, SimplyBiz (SBIZ:199p), a provider of compliance, business and technology services to almost 6,000 financial intermediaries, made the earnings-accretive £73.3m acquisition of Defaqto, a financial technology business operating a fintech platform for 8,500 advisers and providing independent ratings of financial products and funds (‘Defaqto acquisition to drive SimplyBiz share price to new highs’, 20 March 2019). The contribution from Defacto helped drive a 30 per cent rise in SimplyBiz’s first-half cash profit to £6.8m, but there was decent organic growth, too.

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