Fintel (FNTL) H1 2024 earnings summary

Executive summary

• Delivered strong HY 2024 results with 13% core revenue growth to £31.2m and a robust adjusted EBITDA margin of 30%, supported by four acquisitions and organic investments.

• SaaS and subscription revenues now represent 65% of core revenue, reflecting a focus on recurring, high-quality earnings.

• Interim dividend increased by 9% to 1.2p per share, reflecting confidence in the business outlook.

• High recurring income and strong operating cash conversion (101%) underpin financial stability.

• Positive market dynamics and strategic investments position the group for long-term growth.

Financial highlights

• Core revenue up 13% to £31.2m; total revenue reached £35.7m.

• Adjusted EBITDA increased to £9.6m; adjusted EBITDA margin at 26.8%–30%.

• Adjusted EPS held steady at 5.0p; statutory EPS declined to 2.0p due to higher exceptional and amortisation costs.

• Net debt position of £8.6m after acquisitions, with cash position at £7.4m and strong cash conversion of 101%.

• Dividend increased 9% to 1.2p per share.

Outlook and guidance

• Confident outlook supported by strong recurring income, robust cash flow conversion, and strategic investments.

• Net debt to EBITDA ratio projected to rise to c.1.34x by year-end 2024, then deleverage due to strong cash generation.

• Anticipate cyclical upside from a recovering mortgage market in H2 2024 and into 2025.

• Ongoing regulatory changes and demand for integrated technology expected to drive future growth.

• Additional staff costs in H2 2024 expected to marginally lower FY24 EBITDA, with cost synergies anticipated to benefit FY25 and beyond.