| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Smoove plc (LSE: SMV) is a UK-based technology company specializing in internet-based software applications for legal and property services. Operating in the Internet Content & Information sector under Communication Services, Smoove provides digital solutions that streamline property transactions, mortgage lending, and legal compliance. The company’s white-label software is utilized by mortgage brokers, banks, building societies, and price comparison websites, enhancing efficiency in the UK property market. Formerly known as ULS Technology plc, Smoove rebranded in 2022 to reflect its focus on seamless digital conveyancing and risk management services. With a market cap of approximately £30.5 million, Smoove plays a critical role in digitizing the property transaction process, catering to solicitors, estate agents, and housing associations. Despite recent financial challenges, its niche expertise in legal-tech and property services positions it as a key player in the UK’s evolving proptech landscape.
Smoove plc presents a high-risk, high-reward investment opportunity due to its niche focus on UK property and legal-tech software. The company’s revenue of £20.6 million in FY2023 was overshadowed by a net loss of £5.75 million and negative operating cash flow, reflecting operational challenges. However, its strong cash position (£10.1 million) and minimal debt (£749k) provide some financial flexibility. The stock’s high beta (1.995) indicates significant volatility, likely tied to the cyclical UK property market. Investors should weigh Smoove’s potential in digitizing conveyancing against execution risks and competitive pressures. A turnaround strategy focusing on profitability could unlock value, but until then, the stock is suited only for risk-tolerant investors.
Smoove plc operates in a competitive UK proptech and legal-tech market, where its primary advantage lies in its specialized software for conveyancing and mortgage services. Unlike broader SaaS providers, Smoove’s white-label solutions cater specifically to property transactions, offering integration with lenders and brokers. However, its narrow focus limits scalability compared to diversified competitors. The company’s financial struggles (-£5.75M net income) highlight execution risks, while competitors with deeper pockets may outinvest in R&D. Smoove’s partnerships with banks and brokers provide a sticky customer base, but its reliance on the UK market (exposed to housing cycles) is a vulnerability. Differentiation through compliance tools and comparison services is a strength, but it must improve monetization and expand geographically to sustain growth. The rebranding to Smoove reflects a strategic shift, but tangible results are yet to materialize.