21 September 2021

Half Year Results for the six months ended 30 June 2021


Financial Highlights:
·    Solid Revenue growth - up 10% to £31.7m (H1’20: £28.9m) 
·    Strong Adjusted EBITDA*1 - up 12% to £8.3m (H1’20: £7.4m)
·    Solid adjusted EBITDA*1 margin - up 60 bps to 26.1% (H1’20: 25.5%)
·    Adjusted PBT*2 - up 12% to £6.0m (H1’20: £5.4m)
·    Adjusted EPS*3 - down 2% to 4.1p (H1’20: 4.2p), after one off tax charges
·    Robust cash flow conversion*4 of 81% (H1’20: 65%)
·    Strategic deleveraging - proforma net debt*5  to EBITDA ratio of c.0.2x (H1’20: 1.5x)


Strategic Highlights
·    Strategic disposal of non-core Zest Technology
·    Strategic Technology and Distribution partnership with Tatton Asset Management
·    Strategic disposal of Verbatim Funds
·    Strategic launch of Distribution as a Service (“DaaS”)


Matt Timmins, Joint CEO of Fintel plc, commented: 
“I am delighted to report that Fintel delivered a robust financial performance in the first half of the year, and we remain confident of meeting our full year expectations.
We have also made significant strategic progress in the period, signing our largest ever fintech contract in a partnership that includes the disposal of the Verbatim funds, and realised excellent value from the sale of Zest. The launch of “distribution as a service” is off to an excellent start.
We have significant financial resources to match our ambitions for the business, both in terms of accelerating organic growth and creating value through acquisitions”


*1 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share option charges and operating exceptional costs.  Share option charges are excluded from EBITDA as they are non-cash in nature.
*2 Adjusted PBT is calculated as adjusted profit before tax, which excludes operating exceptional costs and amortisation of intangible assets arising on acquisition. 
*3 Adjusted Earnings Per Share is calculated as adjusted profit after tax, which excludes operating exceptional costs and amortisation of intangible assets arising on acquisition, divided by the average number of ordinary shares in issue for the period. 
*4 Free cash flow conversion is calculated as adjusted EBITDA, less working capital movements, lease payments, CAPEX, development expenditure, corporation tax paid and interest, as a percentage of Adjusted EBITDA.
*5 Net debt position is shown on a proforma basis at 31 August 2021 including the effect of the sale of the Verbatim funds. 


*1 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share option charges and operating exceptional costs.  Share option charges are excluded from EBITDA as they are non-cash in nature.
*2 Adjusted PBT is calculated as adjusted profit before tax, which excludes operating exceptional costs and amortisation of intangible assets arising on acquisition. 
*3 Adjusted Earnings Per Share is calculated as adjusted profit after tax, which excludes operating exceptional costs and amortisation of intangible assets arising on acquisition, divided by the average number of ordinary shares in issue for the period. 
*4 Free cash flow conversion is calculated as adjusted EBITDA, less working capital movements, lease payments, CAPEX, development expenditure, corporation tax paid and interest, as a percentage of Adjusted EBITDA.
*5Net debt position is shown on a proforma basis at 31 August 2021 including the effect of the sale of the Verbatim funds. 
 

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