SimplyBiz founder Ken Davy is stepping down as chair of Fintel.
In an update for the year ended December 31, 2022 - published today (March 21) - Fintel (the parent company of SimplyBiz) said Phil Smith, currently independent non-executive director, is to become chair of the company from May 18.
Davy founded The SimplyBiz Group 16 years ago and the company is now one of the "biggest players in financial adviser compliance support".
Fintel said Smith brings deep industry knowledge, leadership qualities and a wealth of business transformation experience, along with expertise in digital delivery and alignment to the company’s values and strategic objectives.
Speaking to FTAdviser this morning, Matt Timmins, joint chief executive officer of Fintel, said: “Smith is a highly respected individual, he's been in financial services throughout most of his career and he recently was the CEO at Embark and completed that transaction to Lloyds Banking Group.
“Since then, he's joined the board of Fintel, he’s made an immense contribution on the board as independent non executive director, and we're delighted that he's going to step up and take the chair on the AGM.”
The announcement was made alongside Fintel’s results where the firm reported a 4 per cent uptick in total revenue growth at £66.5mn, up from £63.9mn in the same period last year.
At the time, the technology firm, which is also the parent company of Defaqto, said Investec and Zeus had set a revenue expectation of £61.5mn, but instead the firm finished 2021 on £63.9m. This meant it outperformed expectations by £2.4mn.
Core revenue growth remained strong, up 8 per cent to £56.4mn from £52.2mn the previous year.
Adjusted Ebitda for the firm was up 6 per cent, in line with board expectations.
Timmins said the Defaqto business has performed well and the firm has continued to invest in the business since it acquired it in 2019.
“As we stand today, we have almost doubled the profitability of that business,” he said.
“We have deployed new technology, we have continued our partnership with Tatton Asset Management, rolling out tech to the Tatton firms, and we've also launched new modules for Defaqto users - such as integrated cash flow modelling and pension switching tools.”
Fintel also reported a net cash position of £12.8mn, up from £2.5mn.
It said the increased four year £80mn revolving credit facility completed in December 2022, “on more favourable terms”, providing significant, flexible funding capacity for growth opportunities arising in the market .
Timmins added: “The business is inherently very cash generative, most of what we do we convert to cash, we'd have the added benefit of an £80mn RCF facility as well so plenty of firepower to go and make new acquisitions.
“The intention is to look for businesses that provide services to intermediary firms, or vital technology that firms need and look to acquire those over time.
“It's more about quality rather than quantity and what we're looking for are businesses that have a solid customer base of intermediary firms, or ones that have technology that would be completely complementary to both the SimplyBiz and Defaqto business.”
Timmins said the firm has an active pipeline of M&A and it is in discussions with many businesses on a regular basis.
Last year, Fintel rebranded from The SimplyBiz Group as it looked to become a "house of quality brands" in the financial services market.
sonia.rach@ft.com
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