GCIFintel reports strong trading in H1 after multiple acquisitions
() , a provider of fintech and support services to the UK financial sector, issued a trading update for the 6 months ended June 30, 2024 (H1 2024).
Fintel's core revenue increased by 13.3% to £31.2m from £27.6 a year ago while core adjusted EBITDA rose 5.2% to £9.3m. Core SaaS and subscription revenue was up 6% to £20.0m year-on-year while statutory revenue increased by 12.5% to £35.7m. Adjusted EBITDA similarly increased by 6.6% to £9.6m.
The fintech provider ended the period with a gross cash position of £7.4m, down from £13.3m a year ago, after £6.2m was deployed into multiple acquisitions and £2.5m was invested in product development. Net debt was £8.6m with a debt-to-EBITDA ratio of 0.4x. The company had £64.0m of headroom in its £80.0 revolving credit facility.
Operationally, Fintel completed phase 1 development of its Matrix 360 enhancement of the market and competitor intelligence software Defaqto Matrix - Defaqto is Fintel's Fintech and Research division. also launched Fintel IQ during the half, a connected technology and workflow platform enabling a seamless advice process for large intermediary firms.
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Fintel reports strong trading and positive momentum in H1, in line with management expectations. The fintech provider continued its aggressive M&A strategy with 5 acquisitions announced year-to-date, totalling 9 in the past 12 months, in line with its objective to significantly expand its IP, capabilities and quality datasets within its core markets.
The acquisitions boosted core EBITDA and core revenue in H1, up 5.2% and 13.3% respectively. Despite heavy investment, the group ended the half with a robust cash position of £7.4m and £64m of headroom within its £80m revolving credit facility. The strong balance sheet, combined with strong cash generation and reliable recurring revenues, position well for continued expansion and more M&A.
Trading into H2 remains in line with expectations, with growth in fintech software revenue and software license sales offsetting pressures in the UK housing market. Additionally, with interest rates set to adjust positively in 2024, Fintel is well-positioned to benefit from a recovery in the mortgage market. The group expressed confidence in meeting expectations for the full year.
We expect near-term growth to be driven by ongoing software adoption across 's customer base, further penetration across the wider market, synergies from recent acquisitions, and more M&A. Growth may be further accelerated by structural drivers, including regulatory pressure, the FCA Consumer Duty, and robust demand for technology and data.
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