Retail finance fintech and support provider Fintel has issued its trading update for the six months ending 30th June 2023.
Fintel’s core revenue increased to £27.6m during this six month period, increasing 1.6% in total and 4% on a like-for-like basis.
Its statutory revenue totalled £31.7m, down 2%, reflecting both new net revenue recognition on major software reseller contract extension in current period, and reduced activity in non-core business.
The business also saw a cash position of £13.3m, which it reported was driven by continued strong operating cash flow conversion, which is expected to exceed 100%.
Fintel announced two major acquisitions, including that of MICAP by subsidiary business Defaqto, and Competent Adviser via Fintel IQ.
MICAP provides independent research and advice tools for tax advantaged investment products.
The acquisition will extend Defaqto’s reach into the tax-advantaged market, expanding both its data footprint and research capabilities to further enhance scale and IP.
Completed in July 2023, the transaction was funded entirely from cash reserves with upfront cash consideration of £3m representing a 10x EV EBITDA multiple.
In addition, £1m cash consideration is deferred for one year and a £500,000 contingent earnout was based on certain trading criteria being delivered in the first year of ownership.
Competent Adviser is a learning platform enabling advisers to meet increasing regulatory competency requirements.
Completed in July 2023, the acquisition was funded entirely from cash reserves with upfront cash consideration of £2.5m representing a 9x EV EBITDA multiple.
Matt Timmins, joint CEO of Fintel, said:“Fintel has made a positive start to 2023, with a solid performance in our Core business and significant strategic progress through a series of successful investments and acquisitions.
“During the period, Fintel successfully negotiated a new five year technology contract for its member firms with an existing vendor on improved terms, which will reduce pass through costs and the associated revenues, whilst increasing EBITDA margin.
“In addition, Fintel is pleased to announce today the acquisition of MICAP and Competent Adviser, two technology platforms serving in excess of 15,000 users, complementing our recent investment in Plannr Technologies through Fintel Labs and further strengthening our product and service proposition.”
