REG - Fintel PLC - Trading Update & Notice of FY Results

FintelAnnouncement

26/01/2023 07:00

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RNS Number : 8982N  Fintel PLC  26 January 2023

 

26 January 2023

 

 

 

Fintel plc

 

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

 

Year End Trading Update

And

Notice of Full Year Results

 

Strong financial performance. Significant strategic progress. Positioned for
growth.

 

Fintel (AIM: FNTL), the leading provider of fintech and support services to
the UK Retail Financial Services sector, today issues a trading update for the
year ended 31 December 2022.

 

Financial Highlights

 

·     Core revenue growth up c.8% to £56.4m (FY21: £52.2m)

·     Core SaaS & Subscription revenue up c.7% to £36.8m (FY21:
£34.3m)

·     Total revenue growth up £2.6m to £66.5m (FY21: £63.9m)

·     Adjusted EBITDA(1) growth of c.6%, in line with Board expectations
(FY21: 6%) while continuing to invest in our core products and services

·     Net cash position(2) of £12.8m (FY21: £2.5m) with Revolving
Credit Facility  ("RCF") fully repaid and undrawn since June 2022 driven by
operating cash conversion expected to be in excess of 100% (FY21: 116%)

·     New and increased four year £80m Revolving Credit Facility
completed in December 2022, on more favourable terms, providing significant,
flexible funding capacity for inorganic and organic growth opportunities
arising in the market

 

Operational Highlights

 

·     Continued growth in Core SaaS and Subscriptions revenue across all
three operating divisions

·     Significant progress in conversion to Distribution as a Service
("DaaS") with c.70% (target 60%) of Distribution Partner revenue converted to
multi-year subscription agreements by 31 December 2022

·     Major upgrade to our proprietary advice software with additional
modules released to enhance the intermediary software service offering

·     Selective M&A pipeline expected to enhance earnings and growth
opportunities in the medium term

 

Revolving Credit Facility

 

The planned refinancing of the Group's £45m RCF took place in Q4 of 2022 with
a new, four year RCF completing on 5 December 2022 that increased the Group's
borrowing capacity to £80m. The RCF remains fully undrawn at 31 December
2022. More favorable terms were achieved including a reduction in overall
margin and the option of a £20m accordion, whilst existing leverage covenants
remain in place. An additional bank, Santander, joined NatWest and Virgin
Money in the banking syndicate. This funding capability underpins the Group's
ability to make strategic acquisitions of scale, whilst still maintaining its
track record of prudent leverage.

 

Outlook

 

A backdrop of dynamic structural shifts in UK financial services continues to
position Fintel well to achieve strong and sustained organic growth looking
forward.  This underpins our ability to develop and acquire enhanced
capabilities that can be deployed to our expansive client base.

 

The Board remains confident of delivering future earnings growth in line with
its expectations and making continued strategic progress.

 

Matt Timmins, Joint CEO of Fintel plc, said:

 

"2022 has been a year of continued strategic progress and strong trading. The
business has performed well, with both revenue and earnings growth in line
with the Board's expectations, despite the challenging macro-economic climate.

 

"Continued enhancement and expansion of our technology and service platform
has contributed to increased Core SaaS and Subscription income across all
operating divisions. In addition to delivering a strong financial performance,
we are also delighted to be recognised as the "Best Professional Adviser
Service Company of the Year" for the fifth consecutive year, as well as being
accredited as an "Outstanding Company to Work For" by Best Companies.

 

"Our resilient operating cashflow conversion, combined with our enhanced
funding capacity provide considerable financial agility as we pursue strategic
acquisitions, and we remain confident that Fintel is in a strong position to
deliver both our strategic goals and growth ambitions."

 

Notice of Full Year Results

 

Fintel intends to announce its Full Year Results for the year ended 31
December 2022 on 21 March 2023.

 

 

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

(2) Net cash position excludes any adjustment under IFRS16 "Lease Accounting"
and compares gross cash balances to gross borrowings under the Group's £80m
Revolving Credit Facility.

 

 

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

 Bruce Garrow

 David Anderson

 Harry Hargreaves

 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 the UK's leading fintech and support services business, combining
the largest provider of intermediary business support, SimplyBiz, and the
leading research, ratings and Fintech business, Defaqto.

 

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 & analysis and
targeted distribution strategies to financial institutions and product
providers. Clients include major Life & 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 & benefits. Defaqto ratings help consumers compare and buy
financial products with confidence.

 

For more information about Fintel, please visit the website:
www.wearefintel.com (http://www.wearefintel.com)

 

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