In the three months to the end of February, adjusted Ebitda increased to C$258,620 from C$59,453 the year before on revenue that rose to C$25.51mln from C$23.15mln the previous year.
The C$2.4mln increase in revenue was attributable to the benefits processing business that was acquired in April 2017 from Aon.
The Benefits Division's revenue shot up to C$3.3mln from $500,000 the previous year. The Aon transaction and the new products platform sales, plus several cross-selling initiatives, are expected to significantly increase revenues in the coming months.
Since the Aon transaction closed in April, 2017, 18 contracts were renewed, of which six were in Q1/18; 2 net new clients also went live in Q1/18. Contract Backlog remains over $60.0M.
The Technology Division was relatively flat quarter over quarter, Smart Employee Benefits (SEB) revealed.
During the reporting period, on a consolidated basis, the group finalised more than C$150mln of contracts, of which around C$70mln is new business and the remainder renewals of multi-year contracts.
“SEB has progressed significantly year over year. Our Technology Division maintains a solid base of business with multiple years of healthy EBITDA and significant growth expected in fiscal 2018,” said John McKimm, the president, chief executive officer and chief information officer of SEB.
“Our Benefits Processing business has gained solid traction with the Aon transaction in April, 2017. Our 'One Processing Environment' technology environment for health benefits manages over 90% of all processing associated with a benefits transaction and integrates additional automated solution modules including Voluntary Products, Disability Management, Health & Wellness, Employee Discount Programs and Human Resource Solutions.
“Our 'White Label Channel Partners' go to market strategy is also gaining strong traction. We have more than a dozen Joint Venture negotiations in progress.2 he revealed.
“Our Contracts (Backlog, Option Year Renewals) are maintaining a base of over C$500mln. SEB is well positioned for strong organic growth in revenue, EBITDA and earnings over the next three years with annual revenue under contract of over C$100mln per annum,” he concluded.