22 March 2022

Full year results for the year ended 31 December 2021

Robust financial performance. Significant strategic progress. Positioned for strong and sustainable growth.

Financial Highlights 

•              5% increase in total revenue up £2.9m to £63.9m (FY20: £61.0m)

•              5% increase in core1 revenue - up £2.4m to £52.2m (FY20: £49.8m) 

•              6% increase in adjusted EBITDA2 - up to £18.3m (FY20: £17.3m) 

•              Positive net cash3 of £2.6m (FY20: net debt of £19.4m)

•              Strong balance sheet with £45m revolving credit facility of which £38m remains undrawn

•              Adjusted EPS4 of 10.5 pence (FY20: 11.3 pence), on a like for like basis excluding the impact of the change in the UK Corporation Tax rate EPS would have been 12 pence

•              Final dividend proposed of 2 pence per share, resulting in a full year dividend of 3 pence per share (FY20: 2.85 pence per share)

 

Operational Highlights 

•              SaaS and subscription revenues now represent 66% of total core revenues (FY20: 61%) and continuing to grow across all three operating divisions.

•              Continued digitisation of core business.

•              Strategic partnership to deploy proprietary advice technology for up to 2,500 additional users through Tatton Asset Management. 

•              Increasing revenue quality - Successful scaling of distribution as a service ("DaaS") with 14 partners converted to long term subscription agreements.

•              Solid EBITDA margin of 28.6% (FY20: 28.4%) delivered during a year of investment in digital growth and strategic divestment. 

•              Development of comprehensive ESG strategy, following a wide-ranging materiality assessment with key stakeholder groups, supported by formation of an ESG and Wellbeing Committee.

•              ESG research platform expanded to cover 76 retail investment funds with digital ESG client profiler deployed to over 8,000 wealth managers and financial advisers.

•              Significant strategic progress with successful sale of non-core Zest Technology and disposal of Verbatim funds.

 

Joint CEO, Matt Timmins commented:

''We have delivered strong results during a year of significant strategic progress and continued robust financial performance. Revenues, EBITDA and recurring income have all increased in line with expectations driven by organic growth, strategic enterprise partnerships and the expansion of our proprietary advice technology. We are well positioned for further growth. 

We have maintained earnings in line with our objectives during a year in which we have invested into our digital delivery and completed two strategic divestments. With high levels of cash conversion and a strengthened balance sheet, we now have the financial agility to scale our unique Fintech and services platform and pursue further growth in quality revenues. 

The rapid digitisation of our core business has significantly increased our quality of earnings, with SaaS and subscription revenues reaching 66% of total core revenue and continuing to grow across all three operating divisions.

We have developed a comprehensive and holistic ESG strategy, addressing stakeholder, industry and consumer needs which further strengthens our market position and purpose. Our central position in the market has enabled us to be a significant force in bringing ESG information to professional advisers and their clients.  

We are very excited for the next stage of our journey as we continue to digitise and scale our service model, improve retail financial services, and inspire better outcomes for all.'' 

 

For further information, please contact:

 

Fintel plc

via Instinctif Partners

Matt Timmins (Joint Chief Executive Officer)

 

Neil Stevens (Joint Chief Executive Officer)

 

David Thompson (Chief Financial Officer)

 

 

 

Zeus (Nominated Adviser and Joint Broker)

+44 (0) 20 3829 5000

Martin Green

 

Dan Bate

 

 

 

Investec Bank (Joint Broker)

+44 (0) 20 7597 5970

Bruce Garrow

 

David Anderson

 

Harry Hargreaves

 

 

 

Instinctif Partners (Financial PR)

+44 (0) 20 7866 7887

Mark Walter

fintel@instinctif.com

Tim Linacre

 

Joe Quinlan

 

1Core business excludes revenues from Panel Management, Surveying and Employee Benefits software.

2Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share option charges and exceptional operating costs.

3Net cash position excludes any adjustment under IFRS16 "Lease Accounting" and compares gross cash balances to gross borrowings under the Group's £45m Revolving Credit Facility.

4Adjusted earnings per share is calculated as adjusted profit after tax attributable to owners of the Company, which excludes operating exceptional costs and amortization of intangible assets arising on acquisition, divided by the average number of Ordinary Shares in issue for the period. 

 

Notes to Editors

Fintel is the UK's leading fintech and support services business, combining the largest provider of intermediary business support, SimplyBiz, and the leading research, ratings, and Fintech business, Defaqto.

Fintel provides technology, compliance and regulatory support to thousands of intermediary businesses, data and targeted distribution services to hundreds of product providers and empowers millions of consumers to make better informed financial decisions. We serve our customers through three core divisions:

The Intermediary Services division provides technology, compliance, and regulatory support to thousands of intermediary businesses through a comprehensive membership model. Members include directly authorised IFAs, Wealth Managers and Mortgage Brokers.

The Distribution Channels division delivers market Insight & analysis and targeted distribution strategies to financial institutions and product providers. Clients include major Life & Pension companies, Investment Houses, Banks and Building Societies.

The Fintech and Research division (Defaqto) provides market leading software, financial information and product research to product providers and intermediaries. Defaqto also provides product ratings (Star Ratings) on thousands of financial products. Financial products are expertly reviewed by the Defaqto research team and are compared and rated based on their underlying features & benefits. Defaqto ratings help consumers compare and buy financial products with confidence.

For more information about Fintel, please visit the website: www.wearefintel.com

 

Analyst Presentation

An analyst briefing is being held at 9:30am on 22 March 2022 via an online video conference facility. To register your attendance, please contact fintel@instinctif.com.

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