Conveyancing platform provider ULS Technology said it expected to post an 11% fall in annual profit for the financial year just gone buy, citing Brexit uncertainty and the early stages of the Covid-19 crisis. Pre-tax profit for the year through March 2020 was seen falling to around £4.8m, down from £5.4m on-year. Sales were seen slipping to about £28.3m, down from £30m. 'This performance reflects the uncertainty caused by Brexit and the general election during 2019, and then the initial impact of Covid-19 during the last four-to-six weeks of the period,' the company said. Cash balances at 31 March were over £2m and net debt was around £3.4m, given the company had fully drawn its banking facilities. 'As flagged in our trading update dated 2 April, due to the outbreak of Covid-19, there is considerable uncertainty regarding revenue and profitability in the immediate future,' ULS Technology said. 'It is difficult to predict when and how quickly the housing market will recover at this point.' 'However, the company has sufficient cash reserves to allow it to continue to invest in its sales channels and product development so that it is well positioned for when conditions improve.' 'Investment into DigitalMove also continues with active marketing to conveyancers and ongoing development to further refine the product offering and integration capability, ready for when the housing market picks up.'
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