Fintel (FNTL) , a provider of fintech and support services to the UK financial sector, issued a trading update for the 6 months ended June 30, 2025 (1H25).
Fintel's total revenue increased by 18.6% year-on-year to £42.4m in 1H25, up from £35.7m in 1H24, driven by an effective M&A strategy and new proposition launches. £5.2m of this revenue was inorganic, with underlying organic growth of 4.2%. Adjusted EBITDA rose 17% to £11.2m from £9.6m LY.
Recurring SaaS/subscription revenue jumped by 21% to £24.2m, up from £20.0m LY, driven by £3.0m inorganic growth, and underlying organic growth of 6.0%. FNTL ended the period with a robust balance sheet, with 8.4m cash and £81.5m headroom in a new £120m revolving credit facility. Net debt was £32.0m, representing leverage of 1.34x after large investments in acquisitions, staff and product development.
Operationally, Fintel reported significant scaling of VouchedFor - a financial advisor review site acquired in late 2023 - with new partnerships including Fundament, Blackrock, and Time Investments. Additionally, FNTL's fintech and research division Defaqto launched its Matrix 360 market intelligence software during the period, with new partnerships including Zurich, RAC, Frontier, NFU Mutual and Policy Expert.
On the management side, Fintel's wholly-owned Simplybiz appointed former head of M&G Wealth Advice Tom Hegarty as its new CEO in April 2025. And in terms of M&A, Rayner Spencer Mills Research was acquired by Fintel in January 2025, building on 4 acquisitions in FY24 and extending Defaqto's fund research and ratings platform.
Matt Timmins, CEO of Fintel, commenting: "2025 is progressing well, with strong trading in line with expectations. We continue to take advantage of our expanded market position with a number of new product launches and strategic partnerships across our brand portfolio.
We are taking significant steps to simplify our structure and support the integration of our recent acquisitions, and the work we have done to align our business behind our core growth drivers is also progressing well.
We are confident of delivering further progress in the second half of this year and beyond, with our extensive platform positioning us strongly to capitalise on the multiple growth opportunities available in a fragmented retail financial services market."
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Fintel reports another half-year of strong growth in line with expectations, featuring 18.6% and 21% jumps in total and recurring revenues respectively on the back of a successful M&A strategy, new industry partnerships, and significant product development. Notably, the group strengthened its funding capacity, boosting the size of its revolving facility to £120m from £80m with the addition of a 4th bank to the lending panel, with more favourable terms and a 20p reduction in margin. The lending term was also increased to 4 years plus 1 year extension call.
The boost in funding capacity provides Fintel with increased flexibility to invest further in organic growth, product development, and selective M&A. After 4 successful acquisitions in FY24, another addition in Rayner Spencer Mills Research (RSMR) was completed in early 1H25 to bolster Defaqto, with an expected EBITDA contribution of £0.5m this year.
Operationally, Fintel rolled out Defaqto's Matrix 360 during the period - its new market intelligence platform for the general insurance sector - onboarding 6 customers to start and further demonstrating the group's commitment to diversify beyond its traditional advisory stronghold.
Strong sales momentum continues into 2H25. The backdrop for FNTL remains positive, underpinned by structural market shifts within the UK financial services sector, including regulatory requirements and demand for data and insights, as well as upside from a future recovery in the housing market.
Fintel maintains strong visibility of earnings and recurring revenues, with continued M&A expected to facilitate further organic growth through expansion of services, cross-selling, and other synergistic opportunities. With a strong balance sheet, plenty of headroom in its expanded credit facility, and strong cash generation, the group remains well-funded for continued expansion.
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