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Fintel reports strong FY24 after 4 acquisitions, adds RSMR to portfolio

09:40, 30th January 2025
Victor Parker
Vox Newswire
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Fintel (FNTLFollow | FNTL, a provider of fintech and support services to the UK financial sector, issued a trading update for the year ended December 31, 2024 (FY24). FNTL also confirmed the 70% acquisition of Rayner Spencer Mills Research (RSMR) following regulatory approval.

Fintel reported full-year performance in line with management expectations, with a 21% increase in statutory revenue to £78.3m from £64.9m in FY23. Core revenue increased 22% to £68.9m, with core SaaS and subscription revenue notably rising 17% to £44.1m.

Adjusted EBITDA rose by 8.5% to £22.2m following continued investment in products and services. FNTL retained a strong balance sheet at period-end with £6.3m in cash and £50m of headroom in its £80m revolving facility. Net debt was £23.7m, representing a comfortable leverage of 1.1x.

Fintel completed 4 acquisitions during the period, supporting its market consolidation strategy - Threesixty Services, ifaDASH, Owen James, and Synaptic Software.

Fintel also announced the conditional 70% acquisition of Rayner Spencer Mills Research, a UK-based investment research specialist, for an initial cash consideration of £5.2m. The remaining 30% will be acquired over the next 24 months.

Matt Timmins, Joint CEO of Fintel, commenting: "2024 has been a year of continued strategic progress and positive financial performance. The business has performed well, with complementary acquisitions supporting significant growth in SaaS and subscription revenues."

We are confident of delivering further progress in the year ahead, with our extensive platform positioning us strongly to capitalise on the multiple growth opportunities available in a fragmented retail financial services market."

Fintel's full FY24 results are expected on March 18, 2025.

 

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Fintel reports positive preliminary results for FY24 in line with expectations, with core revenue rising 22% to £68.9m, including £15m from 4 acquisitions completed during the period. On a LFL basis, core organic revenue increased by 2%, stripping out the impact of the acquisitions and changes in revenue recognition of a software reseller agreement.

Notably, FNTL saw material growth in SaaS/subscription revenue in its core business of 17%, with the 4 aforementioned acquisitions adding further scale, IP, and quality datasets to accelerate SaaS growth. The acquisitions should deliver significant medium-term growth, bolstered by FNTL's new distribution agreement with Mortgage Brain and the recent release of Defaqto's Matrix 360 market intelligence software. Post-period, FNTL also added Rayner Spencer Mills Research to its portfolio. The expected EBITDA contribution from RSMR for FY25 is c. £0.5m.

The backdrop for Fintel remains positive, underpinned by structural market shifts within the UK financial services sector, including regulatory requirements and demand for data and insights, as intermediaries and product providers navigate the evolving market. Fintel forecast an additional £0.65m cost from the recent increase in employer's NIC, which should not negatively impact earnings.

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