26 January 2023
Core revenue growth up c.8% to £56.4m (FY21: £52.2m)
Core SaaS & Subscription revenue up c.7% to £36.8m (FY21: £34.3m)
Total revenue growth up £2.6m to £66.5m (FY21: £63.9m)
Adjusted EBITDA1 growth of c.6%, in line with Board expectations (FY21: 6%) while continuing to invest in our core products and services
Net cash position2 of £12.8m (FY21: £2.5m) with Revolving Credit Facility (“RCF”) fully repaid and undrawn since June 2022 driven by operating cash conversion expected to be in excess of 100% (FY21: 116%)
New and increased four year £80m Revolving Credit Facility completed in December 2022, on more favourable terms, providing signiﬁcant, ﬂexible funding capacity for inorganic and organic growth opportunities arising in the market
Continued growth in Core SaaS and Subscriptions revenue across all three operating divisions
Significant progress in conversion to Distribution as a Service (“DaaS”) with c.70% (target 60%) of Distribution Partner revenue converted to multi-year subscription agreements by 31 December 2022
Major upgrade to our proprietary advice software with additional modules released to enhance the intermediary software service offering
Selective M&A pipeline expected to enhance earnings and growth opportunities in the medium term
A backdrop of dynamic structural shifts in UK financial services continues to position Fintel well to achieve strong and sustained organic growth looking forward. This underpins our ability to develop and acquire enhanced capabilities that can be deployed to our expansive client base.
The Board remains conﬁdent of delivering future earnings growth in line with its expectations and making continued strategic progress.
Matt Timmins, Joint CEO of Fintel plc, said:
“2022 has been a year of continued strategic progress and strong trading. The business has performed well, with both revenue and earnings growth in line with the Board’s expectations, despite the challenging macro-economic climate.
“Continued enhancement and expansion of our technology and service platform has contributed to increased Core SaaS and Subscription income across all operating divisions. In addition to delivering a strong financial performance, we are also delighted to be recognised as the “Best Professional Adviser Service Company of the Year” for the fifth consecutive year, as well as being accredited as an “Outstanding Company to Work For” by Best Companies.
“Our resilient operating cashflow conversion, combined with our enhanced funding capacity provide considerable financial agility as we pursue strategic acquisitions, and we remain confident that Fintel is in a strong position to deliver both our strategic goals and growth ambitions.”
1 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share option charges and exceptional operating costs.
2 Net cash position excludes any adjustment under IFRS16 "Lease Accounting" and compares gross cash balances to gross borrowings under the Group's £80m Revolving Credit Facility.
For further information please contact:
Fintel plc via MHP Group
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
Investec Bank (Joint Broker) +44 (0) 20 7597 5970
MHP Group (Financial PR) +44 020 3128 8147
Reg Hoare Fintel@mhpgroup.com
Notes to Editors