Smoove to rollout agency platform to help 'fix homebuying process'

Conveyancing software provider Smoove is set to rollout a new flagship estate agency product following a successful trial phase.

Smoove Start was piloted in April, providing a platform for agents to sign up clients, conduct due diligence checks and for buyers to complete property information.

A final results stock market update for the 12 months to 31 March 2022 from the company yesterday said the offering has received positive feedback and will now be taken to market to become a core focus for the business.

Jesper With-Fogstrup, chief executive of Smoove, said: “Our Smoove Start offering for estate agents will benefit from the group's already strong credentials in the business-to-business market, and as we work with the industry, its development and roll out will be a core focus over the coming months.  

“Smoove Start will benefit the eConveyancer business by broadening its distribution and diversifying the instruction mix away from the traditional focus on first time buyers.

Whilst some progress has been made on improving the way that the conveyancing industry works, With-Fogstrup said there is still huge scope to make it more effective and efficient, adding: “The property conveyancing market remains fundamentally broken and is ripe for new ways of working that benefits all stakeholders.  

“As well as utilising technology smartly to ensure a consistent and transparent process we are in an ideal position to collaborate and influence the sector to remove the complexity in the market.”

The update also revealed that Smoove is at the early stages of piloting Smoove Complete, a conveyancing platform for consultant conveyancing lawyers, which is designed to meet the changing technological and lifestyle trends in the sector.

Smoove’s annual results showed a 13% yearly increase in revenues to £19.2m, gross profit of £7.8m but an underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of £3.8m.

This was attributed to investment in the core eConveyancer business and in new product areas.

The group also announced a proposed return of capital to shareholders via a tender offer of up to £5m. 

Smoove’s board said this was the best way to achieve a balance between an immediate return of capital to shareholders whilst retaining funds to support value creating new products and business improvements.

 A resolution authorising the tender offer will be put to shareholders at the annual general meeting which is expected to take place in late September.  The buyback is expected to be completed during October.

With-Fogstrup added: "In the past year we have set out ambitious plans to make the home moving and ownership experience better for everyone.

"We have made significant progress in the key areas that will be the bedrock of our future success. Our proposal to return capital to shareholders will allow us to create value for investors while at the same time ensuring we retain funds to continue to invest in the technology and business developments required to deliver our strategy.

"The investment we have made in eConveyancer, including fully integrating the DigitalMove offering, has allowed us to further grow routes to market and consolidated our position as one of the leading conveyancing platforms in the UK. The improvements we continue to make are likely to drive scale and generate increasing returns.

"Overall, we are pleased with the headway we have made with our growing portfolio of products and services including the recent roll out of Smoove Start following a successful pilot with estate agents. In building our diverse range of products, we are well placed for economic uncertainty and the impact that will have on the property sector. 

"The year ahead will be another opportunity to grow, as we look to continue our journey of revolutionising the home ownership market while simplifying processes and reducing the stress and frustration for everyone involved."