Fintel (FNTL) H2 2024 earnings summary

Executive summary

• Achieved strong financial performance in FY2024, with 22% core revenue growth and 17% SaaS/subscription growth year-over-year, driven by both organic and inorganic growth.

• Completed five acquisitions, expanding the customer base, platform scale, and product offering.

• High quality, recurring income now represents 64% of core revenue, with strong operating cash conversion of 78%.

• Significant investments made in product development, notably in Matrix 360 and Fintel IQ.

• Positioned for future growth with high recurring and repeating income and a confident outlook.

Financial highlights

• Total revenue reached £78.3m, up 21% year-over-year, with core revenue at £68.9m, up 22%, and non-core up 12%.

• SaaS and subscription revenues grew 17% to £44.1m, providing strong forward visibility.

• Adjusted EBITDA increased 9% to £22.2m, with a margin of 30.9%, and adjusted PBT rose 4% to £17.0m.

• Dividend increased by 6% to 3.65p per share from FY2023.

• Cash conversion at 78%, expected to trend back toward 100% as investments mature.

Outlook and guidance

• Entering the new financial year with strong momentum, underpinned by recurring revenues and robust cash flow.

• Continued investment in technology, data, and services platforms, including £2.7m in Matrix 360 and further enhancements to Fintel IQ.

• Strategic focus on 5–7% revenue growth, 35–40% margin, and 70–80% recurring revenue.

• Ongoing M&A pipeline supported by a strong balance sheet and £50m headroom in the revolving credit facility.

• Confident in margin improvement as acquired businesses scale and synergies are realized.