ULS Technology appoints digital CEO and confirms rebound from housing market CV-19 dip


Event: Positive trading update as housing market ‘bursts’ back into life and appointment of experienced digital CEO

ULS has issued a positive trading update confirming a strong recovery from the CV-19 induced housing market lockdown in April / May alongside a positive outlook. The Company has also announced that Jesper With-Fogstrup will join as CEO in early 2021 to drive the next phase of growth and expand the Company’s digital reach.

Kestrel Insight

ULS provides online B2B platforms for the UK conveyancing and financial intermediary markets and was unsurprisingly one of the companies most affected by CV-19 as the UK housing market went into lock down in Spring 2020. The trading update confirms that housing transactions came to a halt in April / May at the height of the lock down but have since ‘burst’ back into life. This pattern is supported by data from HMRC on housing transactions and general market commentary.

The business has proven itself to be resilient and of particularly note is the reduction in net debt from £3.4m to £2.0m, notwithstanding the inevitable negative trading impact of CV-19 in the affected half year period.

DigitalMove, the Company’s recently launched digital platform for the conveyancing process, is said to be gaining traction and we think should benefit from the now forced trend of working and collaborating remotely. Based on this early success and the company’s leading position in the UK conveyancing market, ULS has outlined a bold objective to build the pre-eminent digital house moving and owning experience platform in the market. Its vision is that consumers will use this platform to arrange the finance necessary to complete their house purchase, obtain the legal support needed to complete the transaction and select the insurance, utilities and other providers of services they need to run their home.

The appointment of Jesper as CEO designate, with his strong digital background (he joins from HSBC where he was Global Head of Digital as a Channel and prior to that was COO of ComparetheMarket.com) clearly underlines the Company’s intention to deliver on this vision.

 

Kestrel’s portfolio updates should not be construed as investment research nor the provision of investment advice. It should be viewed as short term commentary only based on the latest economic statistics, company results or information on upcoming releases or events. It is only a brief unsubstantiated summary of Kestrel’s current opinion on such information.

 


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