Fintel (FNTL) reported a strong first-half performance, with continuing revenue up 5.3% to £38.6m and adjusted EBITDA from continuing operations up 16.6% to £12.4m.
Organic revenue for the software, data and support services provider to the UK retail financial services sector rose 2.0% to £37.4m, while organic adjusted EBITDA increased 11.2% to £11.8m. SaaS and subscription revenue grew 7.9% to £26.1m, reflecting continued expansion in recurring revenues.
Software & Data revenue increased 9.6% to £20.2m, including £1.2m of revenue from the Pearson Ham market pricing business acquired in January. Organic Software & Data revenue grew 2.9% to £18.9m, with recurring revenue rising to £14.4m from £12.3m.
Fintel said Matrix 360 continued to gain momentum, expanding into the banking and wealth sectors and now supporting 27 institutional customers. The group also launched an AI-enabled compliance and oversight platform and continued investment in Plannr, CRM technology, workflow technology and data-driven solutions.
The group completed the disposal of Gateway Surveying Services and APS Legal & Associates in April, sharpening its focus on software, data, distribution and adviser support activities. It also launched Omnicore, a whole-of-market intelligent distribution platform.
Fintel ended the period with £7.3m of cash and £76.5m of headroom under its £120m revolving credit facility. Net debt was £38.2m, representing leverage of 1.4x adjusted EBITDA.
The board said current trading remains in line with expectations and that Fintel is well positioned for sustainable growth, supported by recurring revenues, proprietary data assets and expanding technology capabilities.
Fintel CEO Matt Timmins said: “Fintel delivered a strong first half performance, with organic growth across our core businesses, continued expansion of recurring revenues and a 16.6% increase in EBITDA from continuing operations. The resulting incremental margin of over 90% demonstrates the strength of our operating model, operational gearing and the benefits of recent acquisitions being integrated across the Group.
Alongside this financial momentum, we continue to execute our strategy, strengthening our proprietary data and increasing our focus on scalable, higher-margin revenues. The acquisition and integration of Pearson Ham's market pricing business enhanced our market intelligence capabilities and supported the continued rollout of our Market intelligence platform (Matrix 360). We further leveraged our data, technology and regulatory expertise through the launch of our AI-enabled compliance and oversight platform, strengthening our intermediary proposition and expanding technology adoption across adviser firms.”
View from Vox
A solid first half, with double-digit EBITDA growth and continued investment in technology and data. The sharper strategic focus following disposals should help Fintel concentrate on its higher-margin growth areas.