Fintel (FNTL) , a provider of fintech and support services to the UK financial sector, issued a trading update ahead of its AGM meeting on May 21, 2024.
Fintel said it continued to execute against its growth strategy and was trading in line with the Board's expectations. The group has completed 4 acquisitions since the beginning of 2024, including Synaptic Software, Owen James and ifaDASH, alongside investment in Mortgage Brain.
Fintel reported a gross cash position of £10.6m as of April 30, 2024, net debt of £0.4m, and £69m of headroom within its £80m revolving credit facility. The group said it remained "well positioned to capitalise on organic growth opportunities and our strong M&A pipeline".
A half-year trading update is expected in July 2024, and full interim results in September 2024.
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A short update from Fintel, reassuring investors that its growth strategy is proceeding as expected. FNTL's ambitious M&A pipeline has resulted in 4 significant acquisitions in FY23, plus 4 more since the beginning of FY24 (here and here) and one investment, bolstering steady EBITDA growth of 5.6% and core revenue growth of 11.8% reported for FY23.
Trading so far in FY24 remains in line with expectations, with growth in fintech software revenue and software license sales offsetting pressures in the UK housing market. With expectations that interest rates and housing activity will pick up later in 2024, Fintel is well-placed to capitalise on the expected recovery of the mortgage market. With a strong balance sheet, plenty of headroom in its credit facility, and strong cash generation, Fintel is well-positioned for continued expansion.
We expect near-term growth to be driven by ongoing software adoption across FNTL'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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