ULS Technology profits edge higher as margins rise
ULS Technology on Tuesday recorded slight interim profit growth on the back of margin improvement, though it warned that future results will take a hit from investment in product development.
The conveyancing platform provider's profit before tax came in at £2.4m for the six months ended 30 September, up 3% compared to the same period last year, though revenue dropped by 8% to £14.5m.
The AIM traded company added an interim dividend of 1.25p per share, 4% higher than 12 months prior.
The improvement in profit came as ULS said its customer base continued to evolve towards higher margin introducers, with this translating into the company's gross margin rising from 41.8% to 43.9%.
Meanwhile, the company said it planned to utilise existing cash resources to accelerate the development its DigitalMove technology, which it expects will impact profitability by around £1m in the next financial year before it begins to generate significant revenues.
Chief executive Steve Goodall said: "Looking further ahead, we expect to generate significant growth opportunities via DigitalMove and are delighted by the early progress and potentially transformational nature of this product. It has been designed to benefit existing and new customers and to open up new high margin revenue streams for the company."
ULS Technology shares were down 4.24% at 43.09p at 1133 GMT.