Ken Davy, founder and chairman of adviser support company SimplyBiz, is to step down to become deputy chairman next year in a senior executive reshuffle.

Mr Davy is one of the best known entrepreneurs in the financial advice sector and has built up a number of businesses including SimplyBiz and DBS, an IFA network he later sold.

He is also chairman of rugby league club Huddersfield Giants and former chairman of football club Huddersfield Town.

Mr Davy will be replaced as chairman by senior non-executive director Gary Hughes who will be appointed deputy chairman today and become chairman at the 2021 AGM as part of the group’s succession planning.

At the 2021 AGM current chairman Mr Davy will become deputy chairman.

The news was announced in an “operational and Covid-19” update to the Stock Market today.

The company says it remains confident about the future but to ensure resilience managers are taking a number of “short-term cost saving initiatives.” These include freezing pay increases and bonuses for staff and reducing executive directors' pay. Some staff on the mortgage side have also been furloughed.

The company will also scrap any plans for an interim dividend but says it will go ahead with its final dividend payment of 2.85 pence per share on 4 May.

To cope with the Coronavirus outbreak, training seminars are being hosted digitally and most staff are working remotely.

SimplyBiz is helping intermediary customers with remote working support and cashflow support with fees.

Recruitment of new firms continues to take place however, said the firm which also acquired data provider Defaqto last year.

With the economic outlook uncertain the board has temporarily withdrawn financial forecasts for the current financial year.

Despite the challenges the company says it “remains confident” about the future as the business is generating cash and “trading comfortably” within bank covenants.

It sees no reason at present to seek additional external capital.

SimplyBiz Group supports 3,700 intermediary firms with regulatory and business support in addition to the 1,900 customer firms using its fintech platform. It also provides product distribution support to 400 financial institutions.

• Director Tim Trotter will also retire from the board today, as previously announced.