REG - Fintel PLC - Trading Update

FintelAnnouncement

28/07/2022 07:00

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RNS Number : 9817T  Fintel PLC  28 July 2022

28 July 2022

Fintel plc

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

Trading Update

Robust core business performance drives continued growth following strategic
disposals

 

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
six months ended 30 June 2022.

 

Financial Highlights

·      Core revenue(1) growth of c.9% to £27.1m (HY21: £24.9m)

·      Total revenue growth of 2% to £32.2m (HY21: £31.7m)

·      Adjusted EBITDA(2) up 5% to £8.7m (HY21: £8.3m)

·      Improved Adjusted EBITDA margin of 27.0% (H1 2021: 26.1%)

·      Significant financial resources with £7.6m cash and undrawn
£45m RCF

·      Underlying operating cash flow conversion(3) expected to exceed
120% (HY21: 135%)

 

Operational update

In the first six months of 2022 the Business has continued to trade well with
strong Core revenue(1) growth in line with the Board's expectations and
outpacing the revenue impact of strategic disposals. Continued progress in the
conversion of Distribution as a Service ("DaaS") revenue has seen a greater
proportion of these existing revenues recognised in H1. On a full year basis,
the current core revenue expectation is trading at the upper end of the range
of our medium term objective(4).

 

With the continued digitisation of the Business and successful conversion and
scaling of DaaS, earnings quality continues to grow in absolute terms with
SaaS and subscription income delivering c.66% of our expanded Core revenues.

 

Underlying operating cash flow conversion remains strong, in excess of 120%.
£7.6m of cash at 30 June 2022, together with the £45m Revolving Credit
Facility fully undrawn, provides significant financial resources to fund
growth both through organic investment and strategic acquisitions.

 

Notice of Interim Results

Fintel intends to publish its interim results for the six months ended 30 June
2022 on 20 September 2022.

 

Matt Timmins, Joint CEO of Fintel plc, said:

"We are delighted to report continued solid trading and earnings quality in
the first half of the year, in line with our strategic goals and Board
expectations. Growth in our Core business has been strong and in-line with the
top end of our medium-term objectives communicated in our CMD (Dec20)(4) with
the balance of new revenues continuing to come through SaaS 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."

 

Notes

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

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

(3) Underlying operating cash flow conversion is calculated as underlying cash
flow from operations (adjusted operating profit, adjusted for changes in
working capital, depreciation, amortisation, CAPEX and share based payments)
as a percentage of adjusted operating profit.

(4) Medium term Core Revenue objective: Core revenue growth between 5% and 7%
annually.

 

*All financial figures based on unaudited figures.

 

 

For further information, please contact:

 

 Fintel plc

                                    via
 Instinctif Partners

 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

 Instinctif Partners (Financial PR)
                                                        +44
 (0) 20 7866 7887

 Mark
 Walter
    fintel@instinctif.com

 Tim Linacre

 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)

END

 

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