Fintel (FNTL), the fintech specialist focused on delivering solutions to the UK retail financial services industry, said in a trading update that trading in the first six months of 2022 had been in line with expectations, leaving it on track to hit its medium-term objective of growing core revenues by between 5% and 7% a year.

Core revenues – which exclude revenues from its panel management and surveying business – climbed 9% to £27.1m, meaning total revenues were up 2% to £32.2m, validation of the disposals of Zest Technology and Verbatim last year.

Adjusted Ebitda climbed 5% to £8.7m at an improved margin of 27% - up from 26.1% in the same period last year – leaving it well on track to hit its core Ebitda margin target of between 35% and 40%. Getting to that target will be helped by continued digitisation of the business, which meant revenues from SaaS and subscription accounted for 66% of core revenues in the half, close to the bottom of its targeted proportion of between 70% and 80%.  

The strong performance and shift to digital services also drove strong operating cash conversion, and meant that Fintel ended the period with £7.6m of cash and fully undrawn £45m credit facility. That leaves it well placed to continue organic investments and expanding via acquisition. 

Only last week, the group announced the expansion of key product lines under its Defaqto brand - acquired in 2019 - to reflect ongoing changes to consumer protection regulation, with more change to come as a result of incoming Consumer Duty regulation. The company said that continued investment into Defaqto – one of two core divisions alongside intermediary support division SimplyBiz – was a key component of its strategic growth plans. 

Matt Timmins, Joint CEO of Fintel plc, commented: "Increasing regulation continues to drive market demand for our unique Services and fintech offering. Our strong balance sheet and cash flow conversion provides the financial agility to pursue strategic acquisitions and we remain confident of delivering our strategic goals and growth ambitions."

Half-year results will be published on 20 September 2022