Fintel (FNTL) , a provider of fintech and support services to the UK financial sector, announced its interim results for the half year ended June 30, 2025 (H1 2025).
Fintel's revenues jumped 18.6% year-on-year to £42.4m, up from £35.7m in H1 2024, driven by an effective acquisition strategy, product launches, and operational restructuring. Adjusted EBITDA rose 17% to £11.2m from £9.6m last year while adjusted EBITDA margin remained flat. A new dividend of 1.3p was announced, up 8.3% from last year's 1.2p, reflecting the strong cash conversion during the period.
FNTL ended the half 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 successful integration of Rayner Spencer Mills Research (RSMR), which was acquired in early 2025, as well as the 8 other acquisitions completed in FY24 and FY23. Fintel also streamlined its operations into two divisions - Software & Data and Services - which delivered strong revenue growth of 17% and 20% respectively.
Matt Timmins, CEO, commented: "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.
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."
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Fintel reports another half of strong growth in line with expectations, featuring 18.6% and 21.1% jumps in total and SaaS/subscription 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 8 successful acquisitions in FY24 and FY23, another addition in Rayner Spencer Mills Research (RSMR) was completed in early H1 2025 to bolster Defaqto, with an expected EBITDA contribution of £0.5m this year.
Strong sales momentum continues into H2 2025, with performance so far consistent with the first 6 months. The newly simplified structure and successful M&A strategy provide a strong base for long-term value creation, with both divisions well-positioned to take advantage of rapidly rising demand for technology, data, and regulatory support in the UK, supported by FNTL's cash-generative recurring revenue model.
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-positioned for continued expansion.
FNTL shares rose 7% on the announcement.
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