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Acquisitions on the cards for Fintel after 'resilient' 2020

Acquisitions on the cards for Fintel after 'resilient' 2020

Acquisitions could figure in Fintel’s growth strategy following a “resilient” 2020.

In the full year results of the company, which recently rebranded from The SimplyBiz Group, the board commented that it could take advantage of “selective and appropriate acquisition opportunities”.

During the 12 months to December 31, revenues of £61m were recorded. In comparison to the £62.8m received in 2019, this means revenues dipped by a mere £1.8m during the pandemic.

A 4 per cent rise in revenues from intermediary services was partly behind this. Over 2020, this area of the business received £25.1m, up from £24.2m in 2019.

During the pandemic bosses at the group took a pay cut as the company froze salaries and bonuses.

The business also placed its mortgage valuation teams on the government's furlough scheme as part of a "short-term" cost saving plan.

The support provider had put in place a payment holiday for members in response to the pandemic and lockdowns. 

Today (March 23) the board of Fintel announced the company is adopting a “progressive dividend policy” and has authorised a full year dividend of 2.85 pence per share .

Post tax profit for 2020 was £8.2m, down slightly from the £8.6m figure of 2019.

This corresponded to a slightly lower earnings per share of 11.3 pence (compared to 12.9 pence in 2019).

Fintel joint CEO Matt Timmins said: “Rapid and ongoing digital acceleration enabled us to deliver resilient revenues with a strong adjusted EBITDA margin and adjusted earnings marginally ahead of our July 2020 guidance.

“Our speedy deployment of our proprietary technology enabled all our customers to continue to use our services digitally, without any disruption.”

Jon Yarker is a freelance reporter for FTAdviser