LONDON (ShareCast) - (Sharecast News) - Fintel reported double-digit first-half revenue and earnings growth on Tuesday, as it integrated a series of acquisitions and accelerated its transition to a software and data-led business model.
The AIM-traded provider of software and support services to the UK retail financial services sector said group revenue rose 18.6% to £42.4m in the six months ended 30 June, with organic revenue up 4%.

Adjusted EBITDA increased 17% to £11.2m, while cash conversion remained strong at 124%.

Software-as-a-service (SaaS) and subscription revenue climbed 21.1% to £24.2m.

The company declared an interim dividend of 1.3p, up 8.3% on last year.

Fintel said the period marked a strategic shift as it moved from three divisions to two - software and data, and services - and successfully integrated nine recent acquisitions, including Rayner Spencer Mills Research.

The software and data arm lifted revenue 17% to £18.4m, while the services division grew 20% to £24.0m.

It ended the half with £8.4m in cash and net debt of £30.1m, with £81.5m of headroom remaining in its new £120m revolving credit facility.

"Fintel has delivered a strong first-half performance, with double-digit revenue and EBITDA growth reflecting the strength of our business model and the quality of our earnings," said chief executive Matt Timmins.

"We have also made significant strategic progress, successfully integrating nine acquisitions into two complementary divisions.

"This transformation marks a pivotal moment for Fintel, enabling us to concentrate resources on our most attractive markets and propositions, while providing a clear framework for innovation and growth as we transition to a software and data-led business built on recurring revenues."

Timmins added that the simplified structure, scalable model and continued investment in high-margin recurring software and data revenues had left Fintel "better positioned than ever to capture the substantial opportunities ahead".

He said trading since the period end had been consistent with the first half and remained in line with board expectations.

At 1057 BST, shares in Fintel were up 2.78% at 222p.

Reporting by Josh White for Sharecast.com.

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