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Fintel revenues up 2% with ‘significant financial resources’

Fintel revenues up 2% with ‘significant financial resources’
 

Fintel saw a 2 per cent uptick in total revenue growth, delivering “solid financial performance” in the first half of the year. 

In the six months to June 30, Fintel, which rebranded from The SimplyBiz Group last year, reported total revenue growth of £32.2mn, up from £31.7mn in the same period last year.

Core revenue growth also remained strong, up 9 per cent to £27.1mn from £24.9mn, which the firm said was driven by “continued progress in converting existing revenues to 'Distribution as a Service'”.

Fintel joint chief executive officer Matt Timmins, said the results were trading in line with expectations.

"Growth in our core business has been strong, delivering increased revenues, earnings and cash, while maintaining Ebitda margin and quality of earnings (SaaS and subscription revenues),” he said.

“Fintel continues to benefit from changes in regulation and these regulatory tailwinds increase demand for both our services and fintech across our diverse customer base. 

“The continued digitisation of our service model and scaling of our Fintech platform has been further strengthened by increased user adoption and development of new modules.”

Adjusted Ebitda for the firm was up 5 per cent to £8.7mn, an increase from £8.3mn last year.

FIntel also reported that it has “significant financial resources” with £7.6mn cash, a change from the £15.5mn debt last year.

"We have a strong balance sheet following the strategic divestment of non-core Zest Technology and Verbatim funds and the continued strong cash generation of the business,” he said.

“A cash surplus of £7.6mn and access to an undrawn £45mn revolving credit facility provides a capital base to continue to invest in our growth opportunities.  

"We are confident of meeting our full year expectations and longer-term growth ambitions."

Elsewhere, in its results for last year, Fintel saw a £2.9mn uptick in revenues which Timmins said was “marginally ahead of expectations”.

The technology firm said Investec and Zeus had set a revenue expectation of £61.5mn, but instead the firm finished 2021 on £63.9mn. This meant it outperformed expectations by £2.4m.

sonia.rach@ft.com

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