Fintel flags strong full year financial, strategic performance
By Josh White
Date: Thursday 30 Jan 2025
(Sharecast News) - Fintel reported a strong full-year financial and strategic performance in an update on Thursday, with revenue increasing 21% to £78.3m, driven by organic growth and acquisitions.
The AIM-traded firm said core revenue rose 22% in 2024 to £68.9m, while core software-as-a-service (SaaS) and subscription revenue grew 17% to £44.1m.
Adjusted EBITDA increased 8.5% to £22.2m, reflecting ongoing investment in product and service expansion.
The company continued its acquisition strategy through the year, completing four strategic transactions - Threesixty Services, ifaDASH, Owen James, and Synaptic Software.
It said the additions had strengthened its technology and data capabilities, supporting its long-term strategy of consolidating the fragmented fintech market.
The firm also expanded its intermediary proposition with a new distribution agreement with Mortgage Brain, enhancing access to CRM, sourcing, and submission software for its adviser network.
Fintel noted the successful completion of the acquisition of Rayner Spencer Mills Research (RSMR) in January, following regulatory approval.
It initially acquired 70% for £5.2m, with the remaining 30% set to be acquired over the next 24 months, subject to performance.
The board said it expected the acquisition to contribute about £0.5m in EBITDA for 2025.
Fintel said it ended the year with a net debt position of £23.7m, following significant acquisition-related expenditure, but added that it maintained a strong balance sheet with £6.3m in cash and £50m in available credit.
Its leverage remained modest at 1.1x EBITDA.
Looking ahead, Fintel said it expected continued growth in 2025, underpinned by rising demand for regulatory solutions, data, and technology in the UK retail financial services sector.
The company said it was focused on integrating recent acquisitions, driving revenue synergies, and expanding its technology and data-driven offerings.
While mindful of macroeconomic uncertainties, Fintel said it remained confident in achieving further strategic progress and sustained organic growth.
"2024 has been a year of continued strategic progress and positive financial performance," said joint chief executive officer Matt Timmins.
"The business has performed well, with complementary acquisitions supporting significant growth in SaaS and subscription revenues.
"We have welcomed four new businesses to the Fintel family in 2024, with the previously announced acquisition of RSMR also receiving regulatory approval in December."
Timmins said that, through the strategic acquisitions and continued investment in its unique technology and data propositions, the company had successfully expanded its IP, scale and reach, which will support future organic growth.
"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."
At 1604 GMT, shares in Fintel were up 0.38% at 265p.
Reporting by Josh White for Sharecast.com.
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