SimplyBiz's subsidiary companies cause £5.5m loss

The loss follows a £3.4m profit the previous year, which the group has attributed to the write down of loans from Sandringham Financial Partners, and the partial impairment of its investment in Staffcare.

However Chairman Ken Davy stressed that the loss was due to "one off write downs and impairments", and stressed that SimplyBiz’s earnings before interest, tax, depreciation and amortisation were £4.2 million in 2014.

Matt Timmins, Joint MD of SimplyBiz, commented:

“During 2014 our group turnover further increased and we continue to make significant investment in new business areas, namely serving the auto enrolment market and an increasing client base in the lending, consumer credit and estate planning sectors. We are also very pleased to report continued growth in membership for the Group with an increase of 5.7% in our FS customer base.

“The published results themselves are impacted significantly by certain one off write downs or impairments which are covered in detail in the accounts. Exceptional item losses totalling £7,224,870 have resulted in an accounting loss for the group however these are not ‘in-year’ from a cash perspective and they relate to several previous years of investment or book-value adjustments which are subject to review in future periods.

“During 2014 we achieved an increase in adjusted EBITDA of 105%, while growth in turnover and EBITDA from existing business areas is up over 10%. Growth from new business areas and acquisitions sees a turnover increase of 42% and an EBITDA increase of 20%”