Fintel (FNTL) H1 2024 earnings summary

Executive summary

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

• Four acquisitions completed year-to-date, expanding technology, support services, and customer base by over 900 firms and 10,000 advisors.

• SaaS and subscription revenue now represents 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 future performance.

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

Financial highlights

• Core revenue up 13% to £31.2m year-over-year; statutory revenue reached £35.7m.

• Adjusted EBITDA increased to £9.6m, with margin at 30%; adjusted EPS held steady at 5.0p.

• Gross profit for the core business up 8% to £16.2m; total gross margin at 46.2%.

• Net debt position of £8.6m after acquisitions; cash position at £7.4m.

• Dividend per share grew 9% to 1.2p, in line with profitability.

Outlook and guidance

• Confident outlook for H2 2024 and beyond, supported by strong recurring income, positive market dynamics, and strategic investments.

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

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

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

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