Profits have risen 56% at adviser support company SimplyBiz, as an improvement in underlying earnings from the first six full months of trading following the Defaqto acquisition helped offset a significant reduction in valuation income.

SimplyBiz acquired technology and data provider Defaqto in a £74.3m deal last year. 

Revenues for the first half of 2020 dropped 0.69% to 28.9m (H1 2019: 29.1m) whilst operating profit rose 56% to £5m (H1 2019: £3.2m).

The company attributes its strong performance to the half to taking “strong and positive action within the first week of national lockdown” to ensure it could fully support its customers and colleagues. All services to intermediary customers were moved onto a proprietary digital platform and delivered without disruption.

The group said that decisive cost control and efficiency improvements were also made which will deliver sustained margin benefits in the future.

However, the group's mortgage valuation business and events programme were significantly impacted by the lockdown, though volumes moderately increased in June.

Matt Timmins, joint CEO of The SimplyBiz Group, said: "We are delighted to report strong and resilient trading for H1 2020, demonstrating the robust nature of our business. We benefitted from an improving quality of our underlying earnings, under-pinned by six full months trading from Defaqto which helped offset a significant reduction in valuation income during the period. The quality of our revenues, the resilience of our customers, and the benefits of a stronger digital delivery platform have enabled strong trading during challenging times.

“We have responded quickly and decisively to deliver growth in key strategic areas, whilst improving the quality of our underlying earnings.

“We have accelerated our digital strategy. This data led, digital delivery, will further improve our quality of earnings, margins and cash generation going forward, whilst also improving customer service."