Smoove : 2023 - Annual Report

Overview

1. Highlights
2. At a glance

1. Our investment case

Strategic Report

1. Our business model

1. Our market

1. Our strategy

1. Chief Executive's statement

1. Financial review

1. Risk management

21 Stakeholder engagement and Section 172 (1) statement

24 Corporate social responsibility

Governance

28 Board of Directors

1. Chairman's introduction to governance

1. Corporate governance statement

1. Remuneration Committee report

1. Directors' report

1. Independent auditor's report

Financial Statements

48 Consolidated Income Statement

1. Consolidated statement of comprehensive income
2. Consolidated Balance Sheet
3. Consolidated statement of changes in equity
4. Consolidated statement of cash flows
5. Notes to the consolidated financial statements

1. Parent Company Balance Sheet
2. Parent Company statement of changes in equity
3. Notes to the Parent Company financial statements

88 Company information

A leading provider of technology solutions to the UK home moving market

Operational highlights for the year ended 31 March 2023

• Conveyancing instructions up 5% on FY22 to 69,662. Conveyancing completions up 44% on FY22 to 53,224
• Significant growth in remortgage segment driven in part by new fees-assisted remortgage product line through Lloyds Banking Group
• Release of new eConveyancer user interface and APIs with the aim of increasing instructions and deepening relationship with introducers
• More than 85% of eConveyancer transactional cases now enabled on DigitalMove, handling more than 110,000 instructions to date
• Significant contractual wins including Mojo, Legal & General, Chimnie and Unbiased
• Smoove Complete, the Group's platform for self-employed Consultant Conveyancing Lawyers ("CCLs") launched in October and had 11 CCLs contracted at year end
• Return of capital of £3.65 million via tender offer for the repurchase of shares. Cash balance of £10.1 million at year end

53,224

Conveyancing completions

A conveyancing completion is when the conveyancing transaction has been marked as completed on the eConveyancer platform by the conveyancer and revenue is recognised.

69,662

Conveyancing instructions

2022£19.2m

£20.6m +7.4%

2022: £19.2m

Revenue

Revenue is generated principally from the completion of conveyancing cases and also the associated sales of searches and ID checks.

£(5.4)m2022

£(5.8)m

2022: £(5.4)m

(Loss) before Tax

IFRS measure of profit which is after exceptional costs.

£(3.7)m2022

£(4.8)m

2022: £(3.7)m

Underlying EBITDA

Non-IFRS measure of profit which excludes depreciation, amortisation, finance charges, and non-recurring items not likely to impact future cash flows (see page 19).

2023 £10.1m

2022£22.0m

£10.1m

2022: £22.0m

Net cash

Cash balances at bank.

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What we do

We provide online digital platforms for everyone involved in the buying, selling and refinancing of property in the UK.

Our distribution channels

We have a multi-channel route to market through intermediaries (introducers) such as mortgage brokers, banks, building societies, estate agents, and direct-to-consumer websites.

Customer

We are a customer-focused technology and service business aiming to revolutionise how home moving and ownership can be a better experience for everyone involved. We understand how the housing market works and the frustration felt by consumers at the painstaking time it takes to complete a transaction which is why we marry technology and human assistance to deliver the very best customer service.

Digital

Smoove is investing in new technology to generate more value from its partner relationships, develop new revenue streams, and build products that improve the experience of consumers.

Experience

We have been delivering technological solutions for the property and legal industry since 2004 and have over

1 million transactions behind us. We continually strive to improve the home ownership experience while unlocking efficiencies and revenue earning opportunities.