REG - Fintel PLC - Trading Update and Notice of Half Year Results

FintelAnnouncement

30/07/2024 07:00

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RNS Number : 2656Y  Fintel PLC  30 July 2024

30 July 2024

 

Fintel plc

("Fintel", the "Company" or the "Business")

 

Trading Update and Notice of Half Year Results

 

Continued growth and strategic expansion

 

Fintel (AIM: FNTL), the award-winning provider of fintech and support
services to the UK Retail Financial Services sector today issues a trading
update for the six months ended 30 June 2024.

 

Financial highlights - positive trading momentum, in line with Board
expectations

·      Core(1) revenue increased to £31.2m (HY23: £27.6m), up 13.3%

·      Core adjusted EBITDA(2) increased to £9.3m (HY23: £8.8m), up
c.5.2%

·      Core SaaS & Subscription revenue of £20.0m (HY23: £18.8m),
up c.6%

·      Statutory revenue of £35.7m (HY23: £31.7m), up c.12.5%

·      Adjusted EBITDA(3) increased to £9.6m (HY23: £9.0m), up c.6.6%

·      Strong liquidity with gross cash of £7.4m (FY23: £12.7m; HY23:
£13.3m), after £6.2m deployed into strategic investments and acquisitions,
and continued organic investment into product development of c.£2.5m in the
period

·      £64.0m of headroom in the £80.0m Revolving Credit Facility,
providing flexibility for further investment

·      Net debt position of £8.6m (HY23: net cash of £13.3m), with a
net debt to EBITDA ratio of 0.4x

·      Successful settlement in May 2024 of the 2021 'value builder'
long term incentive scheme for 19 members of key management through £5m cash
award, avoiding shareholder dilution

 

Operational highlights - further progress with organic initiatives

·      Phase one development of Matrix 360 complete, offering an
enhanced version of market and competitor intelligence software Defaqto
Matrix. This provides the most comprehensive view of insurance products
available in the market and enables providers to benchmark and optimise
insurance product performance

·      Launch of Fintel IQ, industry first connected technology and
workflow platform, enabling a seamless advice process for larger intermediary
firms

 

Strategic highlights - continued strategic expansion with five acquisitions
announced

·      Continued strategic expansion with five acquisitions announced
year-to-date, totalling nine in the past 12 months, in line with Fintel's
strategy to expand IP, capabilities and quality data sets within its core
markets

·      Conditional acquisition of Rayner Spencer Mills Research, one of
the most recognised fund ratings and research agencies in the UK

o  Extends Defaqto's fund research and ratings capabilities for financial
services and investment professionals

·      Acquisition of Threesixty Services, a provider of compliance and
business support services

o  Extends Fintel's range of quality services available to professional
intermediaries, complementing its current offerings

·      Acquisition of 70% of ifaDASH, a reg-tech solution that assists
intermediaries with running an efficient, compliant business, by Fintel IQ

o  Enhances Fintel's CRM capabilities, enabling digitisation of compliance
between back-office systems

·      New distribution agreement with Mortgage Brain, one of the
leading providers of technology to the mortgage industry, alongside a minority
investment by Fintel

o  New agreement signed in March 2024, made Mortgage Brain's CRM, sourcing
and submission software available to Fintel's wide network of advisers,
helping them to efficiently source and place the best mortgage products for
their clients

·      Acquisition of Owen James, leading provider of strategic
engagement events, via Fintel IQ

o  Extends Fintel's flagship industry events programme and data and insights
strategy through Owen James' unique market position

·      Completion of acquisition of Synaptic Software, an independent
provider of financial adviser planning and research software, by Fintel IQ

o  Extends Fintel's current technology and research capabilities, delivering
further growth and value opportunities

 

Outlook

Fintel continues to benefit from regulatory and structural changes in the UK
financial services market, with expansion of our products and services
supporting our customers through this evolving landscape.

With a diverse customer base and proposition and further expansion of our
technology and services platform through a series of successful acquisitions
and organic investment into product development, Fintel is well positioned to
benefit from operational efficiencies and growth opportunities.

The Board remains confident of meeting its expectations for the full year.

 

Notice of Half Year Results

Fintel intends to publish its half year results for the six months ended 30
June 2024 on 17 September 2024.

 

Matt Timmins, Joint CEO of Fintel plc, said:

"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.

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."

 

Notes

(1)Core business excludes revenues from Panel Management and Surveying.

(2)Core adjusted EBITDA represents earnings before interest, tax,
depreciation, amortisation, share option charges and operating exceptional
costs excluding Panel Management and Surveying.

(3)Adjusted EBITDA represents earnings before interest, tax, depreciation,
amortisation, share option charges and operating exceptional costs.

 

 

For further information please contact:

 

Fintel plc                                     via MHP Group

 Matt Timmins (Joint Chief Executive Officer)

 Neil Stevens (Joint Chief Executive Officer)

 David Thompson (Chief Financial Officer)

 Zeus (Nominated Adviser and Joint Broker)      +44 (0) 20 3829 5000

 Martin Green

 Dan Bate

 Investec Bank (Joint Broker)                   +44 (0) 20 7597 5970

 David Anderson

 Kamalini Hull

 MHP Group (Financial PR)                       +44 (0) 20 3128 8147

 Reg Hoare                                      Fintel@mhpgroup.com (mailto:Fintel@mhpgroup.com)

 Robert Collett-Creedy

Notes to Editors

 Fintel is a UK fintech and support services business, combining the
 award-winning intermediary business support services, and the leading
 research, ratings and fintech businesses.

 Fintel provides technology, compliance and regulatory support to thousands of
 intermediary businesses, data and targeted distribution services to hundreds
 of product providers and empowers millions of consumers to make better
 informed financial decisions. We serve our customers through three core
 divisions:

 The Intermediary Services division provides technology, compliance, and
 regulatory support to thousands of intermediary businesses through a
 comprehensive membership model. Members include directly authorised IFAs,
 Wealth Managers and Mortgage Brokers.

 The Distribution Channels division delivers market Insight and analysis and
 targeted distribution strategies to financial institutions and product
 providers. Clients include major Life and Pension companies, Investment
 Houses, Banks, and Building Societies.

 The Fintech and Research division (Defaqto) provides market leading software,
 financial information and product research to product providers and
 intermediaries. Defaqto also provides product ratings (Star Ratings) on
 thousands of financial products. Financial products are expertly reviewed by
 the Defaqto research team and are compared and rated based on their underlying
 features and benefits. Defaqto ratings help consumers compare and buy
 financial products with confidence.

 For more information about Fintel, please visit the website:
 www.wearefintel.com
 (https://protect.checkpoint.com/v2/___http:/www.wearefintel.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzoxZWNkYzcyYzEyNGQxMTVkZjdlOWM2MGQwOGU0MzYzMTo2OjQyNWI6M2U4NzcxOWU1ZjJiZmVkYWY4MzU2MTQzNGJjNzcyZTc5ZTc3MzU0MGUxNTVjNWMyOWQwZDlkZmEzMjRkYWQ0MDpwOlQ6Tg)

Notes to Editors

Fintel is a UK fintech and support services business, combining the
award-winning intermediary business support services, and the leading
research, ratings and fintech businesses.

 

Fintel provides technology, compliance and regulatory support to thousands of
intermediary businesses, data and targeted distribution services to hundreds
of product providers and empowers millions of consumers to make better
informed financial decisions. We serve our customers through three core
divisions:

 

The Intermediary Services division provides technology, compliance, and
regulatory support to thousands of intermediary businesses through a
comprehensive membership model. Members include directly authorised IFAs,
Wealth Managers and Mortgage Brokers.

 

The Distribution Channels division delivers market Insight and analysis and
targeted distribution strategies to financial institutions and product
providers. Clients include major Life and Pension companies, Investment
Houses, Banks, and Building Societies.

 

The Fintech and Research division (Defaqto) provides market leading software,
financial information and product research to product providers and
intermediaries. Defaqto also provides product ratings (Star Ratings) on
thousands of financial products. Financial products are expertly reviewed by
the Defaqto research team and are compared and rated based on their underlying
features and benefits. Defaqto ratings help consumers compare and buy
financial products with confidence.

 

For more information about Fintel, please visit the website:
www.wearefintel.com
(https://protect.checkpoint.com/v2/___http:/www.wearefintel.com___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzoxZWNkYzcyYzEyNGQxMTVkZjdlOWM2MGQwOGU0MzYzMTo2OjQyNWI6M2U4NzcxOWU1ZjJiZmVkYWY4MzU2MTQzNGJjNzcyZTc5ZTc3MzU0MGUxNTVjNWMyOWQwZDlkZmEzMjRkYWQ0MDpwOlQ6Tg)

 

 

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