GCIFintel delivers resilient in-line trading, aggressive expansion in FY23
Fintech specialist () announced its consolidated full-year results for the 12 months ended December 31, 2023 (FY23).
Fintel saw adjusted EBITDA growth of 5.6% during the period to £20.5m, with an adjusted EBITDA margin of 31.5% from 29.1% last year. Core revenue increased 5.6% on a like-for-like basis to £47.7m, and core SaaS and subscription revenue was up 11.8% like-for-like to £34.2m.
Fintel completed 4 acquisitions in FY23 with initial cash investment of £13.3m that delivered combined core revenues of £1.5m. In terms of balance sheet, the fintech provider ended the year with £12.7m in cash and £69m of headroom in its £80m revolving credit facility. Net cash was £1.7m following heavy investment in the business and M&A.
Adjusted EPS was 12.2p/share, unchanged from last year. A final dividend of 2.35p/share was proposed, resulting in a full-year dividend of 3.45, up 6.2% year-on-year.
Matt Timmins, Joint CEO of Fintel, commenting: "We are executing our strategy at pace, enhancing our service and technology platform, increasing our scale and reach, and strengthening our position at the heart of the UK retail financial services sector to inspire better outcomes for all.
The cash-generative nature of our business, underpinned by our financial resources, positions us well to capitalise on the favourable market conditions for M&A, whilst delivering further organic growth and value to all of our stakeholders."
View from Vox
A strong year for Fintel, delivering resilient performance in line with expectations and significant progress against its M&A and growth strategy. With a strong balance sheet, plenty of headroom in its credit facility, and strong cash generation, Fintel is well-positioned for continued growth.
The fintech provider reported growth across all core activities, including key SaaS and subscription, which now represents 66.4% of core revenue. Fintech software revenue rose by 11.5%, following significant expansion of proprietary software solutions. Distribution as a Service revenue was also up 24.9%.
M&A investment continued to increase Fintel's scale, reach, and IP, capitalising on favourable conditions in the sector during the year. Four acquisitions were completed in FY23 - MICAP, a provider of independent research and advice tools; Competent Adviser, a learning platform enabling advisers to meet regulatory competency requirements; VouchedFor, a leading review site for financial advisers; and AKG, a provider of independent assessments and ratings of financial strength.
All four are performing in line with expectations. Two further acquisitions were completed post-period: Owen James, a provider of strategic engagement events in UK financial services; and Synaptic Software, an independent provider of financial adviser planning and research software.
Post-period trading remains in line with expectations, with growth in fintech software revenue and software license sales offsetting pressures in the UK housing market. With expectations that interest rates and housing activity will pick up later in 2024, Fintel is well-placed to capitalise on the expected recovery of the mortgage market.
Fintel enters FY24 with strong momentum. We expect further organic growth, driven by ongoing software adoption across its customer base, further penetration across the wider market, synergies from recent acquisitions, and more M&A. Further growth is also underpinned by structural drivers, including regulatory pressure, the FCA Consumer Duty, and robust demand for technology and data.
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