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12/06/2007 - SimplyBiz Giving Shares to Members

In a groundbreaking move SimplyBiz is giving away the majority of its shares in two new companies to its member firms. Launching the initiatives in a series of nationwide meetings SimplyBiz Chairman Ken Davy announced that 70% of the shares in both Capital Reward Ltd and Capital Reward Plus Ltd would be allocated to the Principals of Simply Biz and Compliance First firms.

Every firm will be eligible for a minimum of 60,000 shares in each company plus an extra share for each £1 of turnover up to £300,000 and thereafter on a sliding scale.

For example a firm with a turnover of £300,000 will receive two lots of 300,000 shares whilst the impact of the sliding scale means for the practice with a turnover of £600,000 will be given two stakes of 525,000 shares.

Commenting on the move Ken Davy said; “Our objective is the use both these companies to generate real capital growth for the many firms we represent. At my old company, DBS I introduced a share option scheme that turned a number of members into millionaires whilst many more enjoyed six figure profits and hundreds made over five figures so I have a solid track record of delivery and success. Clearly we cannot forecast what any growth might be however personally I think this scheme could be outstandingly successful. All current members and any firm joining SimplyBiz prior to the allocation of the shares will be eligible to benefit”.

In just four and a half years SimplyBiz has grown into the UK’s second largest IFA service and business support company serving over 4,500 advisers. Capital Reward will use this scale to share in the efficiencies and cost savings it can deliver to providers. Ken Davy adds “We expect to deliver added value in virtually every area from Wraps to General Insurance and Mortgages whilst insuring that the benefits that clients and IFAs enjoy continue as normal. Very importantly we are also ensuring that member firms will benefit equally from Capital Reward regardless of the specific arrangements Simply Biz negotiates so as to avoid either product or company bias. In any individual transaction the amounts are of course tiny however taken as a whole over thousands of transactions they have the potential to create substantial extra value for the many firms we serve”.

The prime purpose of the second company, Capital Reward Plus is in the launch of a new TCF initiative for clients of current and/or retiring firms. Outlining the new service Simply Biz Managing Director Ian Thorneycroft said “We already assist firms who wish to retire, sell or merge their practices through our Stepping Out programme however very often the new firm may not want to take over all the historic clients of a practice. Capital Reward Plus will provide a service for these clients which will ensure that they continue to receive support which is appropriate to their needs. We believe this will be a winning formula for all concerned and one which will also build significant value for our member firms”.

Editors Note:

Simply Biz PLC and its sister company, Compliance First, provide compliance and other business support services to around 2000 IFA firms and well over 4500 individual advisers nationwide. Launched four years ago, SimplyBiz is the UK’s fastest growing IFA support company.

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12/06/2007 - SimplyBiz Giving Shares to Members