TIDMFNTL
RNS Number : 8982N
Fintel PLC
26 January 2023
26 January 2023
Fintel plc
("Fintel", the "Company", the "Business" or the "Group")
Year End Trading Update
And
Notice of Full Year Results
Strong nancial performance. Signi cant strategic progress.
Positioned for growth.
Fintel (AIM: FNTL), the leading provider of ntech and support
services to the UK Retail Financial Services sector, today issues a
trading update for the year ended 31 December 2022.
Financial Highlights
-- Core revenue growth up c.8% to GBP56.4m (FY21: GBP52.2m)
-- Core SaaS & Subscription revenue up c.7% to GBP36.8m (FY21: GBP34.3m)
-- Total revenue growth up GBP2.6m to GBP66.5m (FY21: GBP63.9m)
-- Adjusted EBITDA(1) growth of c.6%, in line with Board
expectations (FY21: 6%) while continuing to invest in our core
products and services
-- Net cash position(2) of GBP12.8m (FY21: GBP2.5m) with
Revolving Credit Facility ("RCF") fully repaid and undrawn since
June 2022 driven by operating cash conversion expected to be in
excess of 100% (FY21: 116%)
-- New and increased four year GBP80m Revolving Credit Facility
completed in December 2022, on more favourable terms, providing
signi cant, exible funding capacity for inorganic and organic
growth opportunities arising in the market
Operational Highlights
-- Continued growth in Core SaaS and Subscriptions revenue
across all three operating divisions
-- Significant progress in conversion to Distribution as a
Service ("DaaS") with c.70% (target 60%) of Distribution Partner
revenue converted to multi-year subscription agreements by 31
December 2022
-- Major upgrade to our proprietary advice software with
additional modules released to enhance the intermediary software
service offering
-- Selective M&A pipeline expected to enhance earnings and
growth opportunities in the medium term
Revolving Credit Facility
The planned refinancing of the Group's GBP45m RCF took place in
Q4 of 2022 with a new, four year RCF completing on 5 December 2022
that increased the Group's borrowing capacity to GBP80m. The RCF
remains fully undrawn at 31 December 2022. More favorable terms
were achieved including a reduction in overall margin and the
option of a GBP20m accordion, whilst existing leverage covenants
remain in place. An additional bank, Santander, joined NatWest and
Virgin Money in the banking syndicate. This funding capability
underpins the Group's ability to make strategic acquisitions of
scale, whilst still maintaining its track record of prudent
leverage.
Outlook
A backdrop of dynamic structural shifts in UK financial services
continues to position Fintel well to achieve strong and sustained
organic growth looking forward. This underpins our ability to
develop and acquire enhanced capabilities that can be deployed to
our expansive client base.
The Board remains con dent of delivering future earnings growth
in line with its expectations and making continued strategic
progress.
Matt Timmins, Joint CEO of Fintel plc, said:
"2022 has been a year of continued strategic progress and strong
trading. The business has performed well, with both revenue and
earnings growth in line with the Board's expectations, despite the
challenging macro-economic climate.
"Continued enhancement and expansion of our technology and
service platform has contributed to increased Core SaaS and
Subscription income across all operating divisions. In addition to
delivering a strong financial performance, we are also delighted to
be recognised as the "Best Professional Adviser Service Company of
the Year" for the fifth consecutive year, as well as being
accredited as an "Outstanding Company to Work For" by Best
Companies.
"Our resilient operating cashflow conversion, combined with our
enhanced funding capacity provide considerable financial agility as
we pursue strategic acquisitions , and we remain confident that
Fintel is in a strong position to deliver both our strategic goals
and growth ambitions."
Notice of Full Year Results
Fintel intends to announce its Full Year Results for the year
ended 31 December 2022 on 21 March 2023.
(1) Adjusted EBITDA is earnings before interest, tax,
depreciation, amortisation, share option charges and exceptional
operating costs.
(2) Net cash position excludes any adjustment under IFRS16
"Lease Accounting" and compares gross cash balances to gross
borrowings under the Group's GBP80m Revolving Credit Facility.
For further information please contact:
Fintel plc via MHP Group
Matt Timmins (Joint Chief Executive
Officer)
Neil Stevens (Joint Chief Executive
Officer)
David Thompson (Chief Financial
Officer)
Zeus (Nominated Adviser and
Joint Broker)
Martin Green
Dan Bate +44 (0) 20 3829 5000
Investec Bank (Joint Broker)
Bruce Garrow
David Anderson
Harry Hargreaves +44 (0) 20 7597 5970
MHP Group (Financial PR) +44 (0) 20 3128 8147
Reg Hoare Fintel@mhpgroup.com
Robert Collett-Creedy
Notes to Editors
Fintel is the UK's leading fintech and support services
business, combining the largest provider of intermediary business
support, SimplyBiz, and the leading research, ratings and Fintech
business, Defaqto.
Fintel provides technology, compliance and regulatory support to
thousands of intermediary businesses, data and targeted
distribution services to hundreds of product providers and empowers
millions of consumers to make better informed financial decisions.
We serve our customers through three core divisions:
The Intermediary Services division provides technology,
compliance, and regulatory support to thousands of intermediary
businesses through a comprehensive membership model. Members
include directly authorised IFAs, Wealth Managers and Mortgage
Brokers.
The Distribution Channels division delivers market Insight &
analysis and targeted distribution strategies to financial
institutions and product providers. Clients include major Life
& Pension companies, Investment Houses, Banks, and Building
Societies.
The Fintech and Research division (Defaqto) provides market
leading software, financial information and product research to
product providers and intermediaries. Defaqto also provides product
ratings (Star Ratings) on thousands of financial products.
Financial products are expertly reviewed by the Defaqto research
team and are compared and rated based on their underlying features
& benefits. Defaqto ratings help consumers compare and buy
financial products with confidence.
For more information about Fintel, please visit the website:
www.wearefintel.com
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END
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