Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Fintel upbeat after year filled with acquisitions

(Sharecast News) - Financial technology and support service specialist Fintel described a resilient full-year performance in a trading update on Tuesday, with results expected to meet its expectations. The AIM-traded company said it achieved 6% growth in adjusted EBITDA, reaching £20.5m, as it maintained a strong balance sheet with £12.7m in cash and £69m in available credit.

Its core revenue increased slightly to £56.6m, with core software-as-a-service (SaaS) and subscription revenue rising by 2%.

The company made four acquisitions during 2023, with combined core revenue from them amounting to £1.5m.

Two more acquisitions were completed in January.

The board said the acquisition of Synaptic Software, which was conditionally agreed in December for net upfront cash of £3.5m, received regulatory approval in late January and had been successfully completed.

Fintel said it planned to invest £0.5m in development to enhance and integrate Synaptic's products into its service offerings.

The company also announced the acquisition of Owen James Events in late January, funded entirely from cash reserves with a net upfront cash consideration of £0.7m.

That acquisition was expected to extend Fintel's industry events programme and data and insights strategy through Owen James' market position.

Looking ahead, Fintel said it expected its core business to continue delivering resilient earnings in line with board expectations for 2023.

The company said it expected to benefit from a recovery in the mortgage market in 2024, adding that it remained well-positioned to support financial intermediaries and product providers in evidencing suitability during the financial product development and sales lifecycle.

"In 2023 we made significant strategic progress, increased our scale, and reach through the acquisition of four businesses to our platform, and delivered a resilient financial performance in line with expectations," said joint chief executive officer Matt Timmins.

"We have demonstrated continued evidence of our capacity and ability to drive organic growth, source and execute complementary acquisitions, and invest in our technology and data propositions.

"In line with our strategy, we are completely focused on consolidating a fragmented market to enhance our scale, proposition, and intellectual property, as we continue to inspire better outcomes for UK retail financial services."

Timmins noted that the company was welcoming "yet another market leader" in Owen James Events, a business "with huge potential", and its sixth acquisition in 12 months.

"We are confident of delivering further progress in the year ahead as we continue to scale our proposition, realise our very active merger and acquisition pipeline and invest in our service and technology platform, with our growth underpinned by recurring incomes and positive structural market drivers."

Fintel said it would announce its full-year results for the 12 months ended 31 December on 19 March.

At 1115 GMT, shares in Fintel were down 6.31% at 245p.

Reporting by Josh White for Sharecast.com.

Share this article

Related Sharecast Articles

Frontier IP appoints new finance chief
(Sharecast News) - Intellectual property commercialisation specialist Frontier IP announced the appointment of Jo Stent as its new chief financial officer on Friday, effective from 22 April.
Directa Plus asphalt technology laid at Imola Circuit
(Sharecast News) - Graphene nanoplatelet specialist Directa Plus announced on Friday that 'GiPave', an asphalt solution incorporating graphene and recycled plastics, was being installed at the Imola Circuit ahead of the Emilia-Romagna Grand Prix in May.
Huddled Group buys Food Circle for £0.3m
(Sharecast News) - E-commerce investor Huddled Group announced the acquisition of online retailer Food Circle Supermarket on Friday, for total consideration of up to £0.3m.
Bens Creek shares fall as it moves mine into care and maintenance
(Sharecast News) - Shares in North American metallurgical coal miner Bens Creek were sliding on Friday afternoon, after the company issued an update on its operations and working capital position, confirming that its West Virginia mine was moving into care and maintenance.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.