Support service provider SimplyBiz has furloughed part of its mortgage team as the firm puts pay rises and bonuses on hold across the business.

In a stock exchange update this morning, the Aim-listed company said that because social distancing had prevented most mortgage valuations going ahead, it had turned to the Government’s Job Protection scheme for those staff.

While executive pay has been reduced, SimplyBiz has confirmed it will still pay out a dividend to shareholders of 2.85 pence per share, to be paid on 4 May 2020.

The dividend for this financial year will be put under review, but the firm says it won’t be recommending an interim dividend in the meantime.

Cash flow support will be given to advice firms using SimplyBiz’s services, the note suggests, but SimplyBiz has withdrawn any future profit guidance due to the current market uncertainty.

The note reads: “The board remains confident about the group’s future as the business is cash generative, is trading comfortably within bank covenants and there is no foreseeable requirement for additional external capital. The increased focus on helping its core intermediary customers to serve their clients remotely is expected to underpin the strong ongoing demand for the group’s services.”

After many decades in the advice market, there is also a hint that the firm is preparing for life after veteran chairman Ken Davy. The firm says the plan is for Davy to move to a deputy chairman role next year, with current non-executive director Gary Hughes set to step into his shoes.