Fintel (FNTL) H2 2023 earnings summary

Executive summary

• FY23 delivered resilient core revenue and higher profitability, with recurring SaaS and subscription income rising to 66.4% of core revenue and four acquisitions completed.

• Strategic progress included £4.8m of technology and service investment, expanded Consumer Duty capabilities and a broader intermediary platform.

Financial highlights

• Statutory revenue fell 2% YoY to £64.9m; core revenue rose 0.3% to £56.6m, or 3% on a like-for-like basis.

• Adjusted EBITDA increased 6% to £20.5m; adjusted PBT rose 3% to £16.4m; adjusted EPS was unchanged at 12.2p.

• Total gross profit increased 5% to £32.7m, with gross margin rising to 50.4% from 46.9%.

• Recommended FY23 full-year dividend of 3.45p per share, up 6% YoY.

Outlook and guidance

• FY24 began confidently, with trading in line with Board expectations and continued organic growth expected from technology penetration and acquisition synergies.

• Medium-term targets: 5–7% revenue growth, 35–40% margin and 70–80% SaaS and subscription earnings; FY23 levels were 6%, 36% and 66.4%, respectively.

• Positive outlook underpinned by recurring revenue, strong cash conversion, favorable market dynamics and a recovering mortgage market.

• Selective M&A pipeline remains active, with a qualified pipeline and capacity supported by the debt facility and experienced team.