Fintel flags solid first-half revenue, earnings growth

30th Jul 2024 13:17

(Sharecast News) - Fintech and support service provider Fintel flagged a 13.3% increase in first-half core revenue on Tuesday, reaching £31.2m.

The AIM-traded firm said core adjusted EBITDA for the six months ended 30 June rose 5.2% to £9.3m, while statutory revenue increased 12.5% to £35.7m and adjusted EBITDA grew 6.6% to £9.6m.

Fintel maintained a strong liquidity position with gross cash of £7.4m, despite deploying £6.2m into strategic investments and acquisitions, and investing around £2.5m into product development.

The company reported a net debt position of £8.6m, with a net debt-to-EBITDA ratio of 0.4x.

Additionally, Fintel successfully settled its 2021 'value builder' long-term incentive scheme, awarding £5m in cash to 19 key management members, avoiding shareholder dilution.

Operationally, Fintel completed the first phase of development for Matrix 360, an enhanced version of the Defaqto Matrix software.

The upgrade provided a comprehensive view of insurance products available in the market, enabling providers to benchmark and optimise their product performance.

It also launched Fintel IQ, a connected technology and workflow platform designed to streamline the advice process for larger intermediary firms.

Strategically, Fintel continued its expansion with five acquisitions announced in the year to date, totaling nine in the last 12 months.

The acquisitions aligned with Fintel's strategy to expand its intellectual property, capabilities, and quality data sets within its core markets.

Notable acquisitions included Rayner Spencer Mills Research, Threesixty Services, and ifaDASH.

Fintel also signed a new distribution agreement with Mortgage Brain and acquired Owen James and Synaptic Software, extending its technology, research, and event capabilities.

Looking ahead, Fintel said it was well-positioned to benefit from regulatory and structural changes in the UK financial services market.

The company's diverse customer base and continued investment in technology and services platform expansion were expected to drive operational efficiencies and growth opportunities.

Fintel said it was confident in meeting its full-year expectations, supported by the strategic acquisitions and organic investments made during the first half of the year.

"Fintel has made a strong start to 2024, with positive trading momentum and continued strategic expansion, bringing new capabilities to our customers while investing in enhancing our core propositions," said joint chief executive officer Matt Timmins.

"As we extend our service and technology platform, we remain focused on driving efficiencies within the UK retail financial services market and creating better outcomes for all participants.

"Looking ahead, we are confident that our diverse proposition and customer base, underpinned by strong market drivers and recurring revenue streams, position us well to deliver continued strategic progress and growth."

Fintel said it would publish its half-year results for the six months ended 30 June on 17 September.

At 1244 BST, shares in Fintel were down 1.34% at 308.82p.

Reporting by Josh White for Sharecast.com.