The publicly-listed
fintech company from London, Fintel (AIM: FNTL), announced financial results
for the first half of 2024 today (Tuesday), marked by strategic acquisitions
and organic growth. Despite a rebound in revenue and EBITDA, net profit fell by
over 30% to £2.3 million from the £3.4 million reported the previous year.

Fintel Reports Strong
First Half 2024

The company
reported a 13% increase in core revenue to £31.2 million for the six months
ended June 30, compared to £27.6 million in the same period last year. Core
adjusted EBITDA rose 5% to £9.3 million, while the adjusted EBITDA margin
slightly decreased to 26.8% from 28.3% in the first half of 2023.

Fintel’s
SaaS and subscription revenue, a key focus area for the company, grew 6% to £20
million, representing 65% of core revenue.

“With
our strategic foundations firmly in place, we are strongly positioned to
capitalize on the growth opportunities across our extensive family of brands,
underpinned by the strength of our balance sheet,” Matt Timmins, Joint CEO
of Fintel, commented.

In January, the company disclosed its results for the entire 2023. Adjusted EBITDA increased by 6% to £20.5 million, up from £19.4 million in 2022. Excluding mortgage brokerage and surveying services, the company’s core revenue rose by 0.3% to £56.6 million.

Expansion Through
Acquisitions

In
addition, the company completed four acquisitions year-to-date, bringing the
total to eight in the last twelve months. Notable acquisitions include
Threesixty Services, a provider of compliance and business support services,
and Synaptic Software, an independent provider of financial adviser planning
and research software.

“Completing
four acquisitions year-to-date, totalling eight in the last twelve months, we
have significantly enhanced our scale, capabilities and IP, whilst accelerating
investment into our core propositions and technology offering,” added Timmins.

Despite the
robust top-line growth, Fintel’s cash position decreased to £7.4 million from
£13.3 million in the first half of 2023, primarily due to £6.4 million deployed
for strategic acquisitions and approximately £2.5 million invested in product
development.

Looking
ahead, Fintel expects to meet its full-year revenue expectations, citing
positive market dynamics and ongoing demand for integrated technology solutions
in the financial services sector. However, the company anticipates some
pressure on EBITDA in the second half of 2024 due to additional staff costs
related to recent acquisitions and investments in sales capabilities.

“Current
trading is robust, and we are confident of meeting our full year revenue
expectations, as we continue to inspire better outcomes for retail financial
services,” concluded the CEO.

Shareholders did not warmly receive the H1 2024 results, and FNTL stocks fell by almost 6% at Tuesday’s market opening, testing August’s lows.

This article was written by Damian Chmiel at www.financemagnates.com.

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