Fintel AIM:FNTL, the Huddersfield-based provider of fintech and support services, published its trading update for the six months to end-June today (28th July), and reported core revenue growth of 9% to GBP27.1m, up from GBP24.9m for the previous year.
The company, which includes brands SimplyBiz, an intermediary business support service and Defaqto, a research and ratings business, saw total revenue grow by 2% year-on-year to GBP32.2m. Adjusted EBITDA increased by 5% to GBP8.7m and the company reported underlying operating cash flow conversion was expected to exceed 120%.
Fintel provides technology, compliance and regulatory support to thousands of intermediary businesses; data and targeted distribution services to hundreds of product providers and allows millions of consumers to make better informed financial decisions, according to a company statement.
The company was admitted to the AIM market in April 2018 and opened trading this morning at 205p. Fintel’s shares have returned -12.08% year-to-date, and -13.98% over one year. The market capitalisation of the company is GBP209.1m and it has seen its share price range from a high of 255.22p to 184.12 over a 52-week period.
Room to invest
Matt Timmins, joint chief executive of Fintel, said that the company had the headroom to build its business through internal investment and via acquisition, as it had GBP7.6m cash in the bank and a revolver of GBP45m, which to date remains undrawn.
Timmins said Fintel had made continued progress in the conversion of distribution as a service revenue during the first half, and revenue generation was performing at the upper end of expectations for the full year, with distribution as a service and subscription revenue delivering 66% of the firm’s expanded core revenues.
“Growth in our core business has been strong and in-line with the top end of our medium-term objectives with the balance of new revenues continuing to come through DaaS and subscriptions.
“Increasing regulation continues to drive market demand for our unique services and fintech offering. Our strong balance sheet and cash flow conversion provides the financial agility to pursue strategic acquisitions and we remain confident of delivering our strategic goals and growth ambitions,” Timmins said.
In June, Fintel announced that M&G had become the latest partner to commit to a multi-year agreement for its Managed Distribution Service, with the agreement covering M&G’s retail and savings business, primarily Pru UK, and M&G Investments.
Fintel will publish its interim results for the six months ended 30th June 2022 on 20th September 2022.
