SimplyBiz reports £5.5m loss | Money Marketing

SimplyBiz has swung to a 5.5m loss for 2014, following a profit of 3.4m in the previous year. The group says performance was hit by the write down of loans to Sandringham Financial Partners, and a partial impairment of its investment in Staffcare. SimplyBiz owns a 20 per cent stake in Sandringham, while it acquired Staffcare in 2013.

In its results announcement, the firm says it made a provision of 3.9m against loans owed by joint ventures and associate undertakings, but adds that these were not expected to be recoverable in the near future. The firm also made a provision of 2.4m against goodwill generated by the acquisition of Staffcare. However, SimplyBiz says the losses are unlikely to recur.

It says: These write downs and impairments are one off, exceptional items and do not impact on the overall trading of the group, therefore the group remains in a strong financial position with an Ebitda of 4.2m for the year in review. So while the firm made a pre-tax loss of 5.5m, profits from continuing operations were 2.3m, down from 3.4m. Turnover climbed from 17.6m to 26.8m, but administrative expenses also rose from 14.4m to 23.5m.

Total staff costs increased from 7.4m to 12.5m as the average monthly headcount surged from 165 to 252.