Fintel, the parent company of Simplybiz and Defaqto, saw a 2 per cent fall in statutory revenue in the six months to June 30.
Fintel, which rebranded from The Simplybiz Group in 2021, reported statutory revenue of £31.7mn in the first half of 2023, down from £32.2m in the same period last year.
The company said this reflected both reduced activity in its non-core businesses and the renegotiation of a contract with a major software reseller.
Core revenue growth remained strong, up 2 per cent to £27.6mn from £27.1mn and grew 4 per cent on a like-for-like basis.
The company said growth had been impacted by the current volatility in the UK housing market which meant commission income from its mortgage lending panel reduced by around 20 per cent.
Matt Timmins, joint chief executive of Fintel, said: “Fintel delivered a positive financial and operational performance during the first half of 2023 and continued to make significant progress in line with its strategic plan.
“We have increased investment into our technology and service platform, with earnings enhancing acquisitions expanding our unique proposition and driving future growth opportunities.”
Adjusted Ebitda for the company was up 3 per cent to £9mn, an increase from £8.7mn last year.
Fintel also reported that it had “strong liquidity with cash position” of £13.3mn, up from £7.6mn in cash last year.
It said the strength of its balance sheet together with an undrawn £80mn revolving credit facility provided significant financial flexibility and headroom to capitalise on organic and M&A opportunities.
“Our diverse client base and proposition, combined with the cash generative nature of our business, provide resilience to tough market conditions and ensure we are well placed to capitalise on the growth opportunities arising from an evolving UK financial services landscape,” Timmins said.
Earlier this year, Fintel completed two tech firm acquisitions through its subsidiaries Defaqto and Fintel IQ as it looks to expand its adviser capabilities.
In July, the company announced the purchase of Micap by subsidiary business Defaqto.
Micap provides independent research and advice tools for tax advantaged investment products.
Timmins added: “Current trading remains encouraging and in line with our expectations.
“Together with the strength of our balance sheet and positive qualified M&A pipeline, we are confident of delivering further strategic progress and accelerating growth, as we continue to inspire better outcomes for retail financial services.”
sonia.rach@ft.com
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