Conveyancing fintech expert Smoove made a loss of £3 million in the last six months, it was announced this morning.
The conveyancing firm, formerly known as ULS Technology, is the platform used by thousands of estate agents.
There was an EBITDA loss of £2.6m despite a revenue increase of 4% to £10.6m.
Smoove says investment in new products such as eConveyancer explains the loss, and that its underlying finances are healthy.
Conveyancing instructions for the six months to 30 September grew by 40% to 39,839.
Earlier this year, the company launched an estate agency pilot called Smoove Start, and it says 30 branches across 18 firms have been signed up.
The Smoove brand with a pink logo and hellosmoove.com website were created in April when the firm decided a new look was needed.
Jesper With-Fogstrup, CEO of Smoove (main pic), says: “Our market leading conveyancing offer, eConveyancer, has performed well despite the volatility in the property sector in recent months as we have capitalised on increased remortgage activity.
“The roll out of Smoove Start, our digital solution for estate agents, has been particularly pleasing given the initial results, and the important position they play in influencing decisions in the home ownership process.
“The economic climate has made trading conditions difficult, but we have been able to mitigate some of the impacts with our strong position in the remortgage sector,” he says.
“Confidence in our products and services was reinforced as we secured the re-contracting with Lloyds Banking Group for the provision of conveyancing services for a further two years.”
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Author: David Callaghan