Actualización Comercial, Adquisición y Notificación de Resultados
30 de enero de 2024
fintel plc
("Fintel", la "Empresa", el "Negocio" o el "Grupo")
Year End Trading Update, Acquisition and Notice of Full Year Results
Resilient financial performance and significant acquisitive growth
Fintel (AIM: FNTL), the leading provider of ?ntech and support services to the UK Retail Financial Services sector, today announces a trading update for the year ended 31 December 2023, the acquisition of Owen James Events ("Owen James"), the leading provider of strategic engagement events in the UK financial services industry, and the successful completion of the acquisition of Synaptic Software following regulatory approval.
Aspectos financieros más destacados
· Resilient performance, with full year results expected to be in line with Board expectations
· EBITDA ajustado1 crecimiento of c.6% to £20.5m (FY22: £19.4m), in a period of continued investment in our core products and services
· Strong balance sheet with £12.7m of cash, and £69m of headroom in our £80m Revolving Credit Facility
· Posición de caja neta2 of 1.7m (FY22: £12.8m), having invested significantly in four acquisitions
· Core3 los ingresos aumentaron a 56.6m (FY22: £56.4m); (LfL4: FY23: £51.7m; FY22: £50.2m), slightly ahead of the same period last year and up c.0.3%.
· Ingresos básicos de SaaS y suscripciones up c.2% a 37.6m (FY22: £36.8m); hasta c.8% on a like-for-like basis excluding the changed software reseller revenues and acquisitions (FY23: £33.0m; FY22: £30.6m)
Financial performance - revenue
Our core business continued to perform well, growing 5.6% excluding volatility in mortgage related commissions. Whilst mortgage related activities experienced a significant 21.2% revenue decline during 2023, this segment remained profitable, and is well positioned for a rapid return to previous performance levels as the UK housing market normalises.
As notified in our half year results, core organic revenue was impacted by the change to the accounting treatment of our largest software reseller agreement. Whilst the EBITDA contribution from this contract remains resilient at historical levels, the statutory accounting treatment applied since May 2023 now represents purely a net revenue and profitability position.
We completed four acquisitions throughout 2023 and the combined core revenue on those acquisitions recognised in the period was £1.5m. A further two acquisitions were completed in January 2024.
The non-core business performed in line with expectations against the UK housing market backdrop, with revenues of £8.4m in the year (FY22: £10.1m). Combined with the core business, statutory revenue was £64.9m (FY22: £66.5m).
31 Dec 23 | 31 Dec 22 | Cambios | Cambios | |
Core organic revenue ex. mortgage commissions | 47.7m | 45.2m | 2.5m | 5.6% |
Ingresos orgánicos básicos por comisiones hipotecarias | 4.0m | 5.0m | (£ 1.0 millones) | (21.2%) |
Ingresos orgánicos básicos, en términos comparables4 | 51.7m | 50.2m | 1.5m | 2.9% |
Ingresos orgánicos básicos de acuerdos de revendedor de software | 3.4m | 6.2m | (£ 2.8 millones) | (46.0%) |
Ingresos orgánicos básicos totales | 55.1m | 56.4m | (£ 1.3 millones) | (2.5%) |
Ingresos básicos de adquisiciones | 1.5m | £ cero | 1.5m | 100% |
Ingresos básicos totales | 56.6m | 56.4m | 0.2m | 0.3% |
Regulatory approval received to complete acquisition of Synaptic Software
· As announced on 5 December 2023, we conditionally agreed to acquire Synaptic Software for a net upfront cash consideration of £3.5m subject to FCA approval
· We are pleased to announce that regulatory approval was received in late January 2024 and the acquisition fully completed shortly thereafter
· We have agreed to invest £0.5m of development expenditure to enhance and integrate its products into the wider Fintel platform of service offerings
Acquisition of Owen James Events
· Acquisition of Owen James via Fintel IQ, Fintel's technology and knowledge platform
o Owen James is the leading provider of strategic engagement events in UK financial services
o Owen James will continue to operate independently within Fintel IQ, while benefitting from Fintel's investment and wide network within the UK financial services market
o The acquisition will extend Fintel's flagship industry events programme and data and insights strategy through Owen James' unique market position
o Completed in late January 2024, the transaction was funded entirely from cash reserves with a net upfront cash consideration of £0.7m representing an EBITDA multiple of 3.8 times. In addition, up to £1.6m contingent earnout is based on certain trading criteria being delivered in the first three years of ownership
o La adquisición es in line with Fintel's strategy to enter key adjacencies, expand its service platform, and connect a fragmented UK retail financial services market
Aspectos operacionales destacados
· Continued growth in the underlying core SaaS and Subscriptions revenue, with diversified customer base providing resilience and offsetting mortgage market headwinds
· Operating cost management throughout 2023 has been dynamic in response to market volatility, enabling protection and enhancement of margins, whilst providing the capacity for organic and inorganic investments into our future growth
· Six acquisitions completed during the past twelve months:
o Owen James - January 2024
o Synaptic Software - January 2024
o VouchedFor - November 2023
o AKG - November 2023
o Competent Adviser - July 2023
o Micap - July 2023
· These acquisitions are in line with the Company's strategy to expand into adjacent markets, adding scale, IP and quality data sets to help the market understand and improve the suitability and appeal of financial products
Outlook
The core business continues to deliver resilient earnings in line with Board expectations for FY23, with the ongoing pressures in the UK housing market largely offset by ongoing growth in fintech software revenue and software license sales.
Fintel's market leading position and diverse customer base provide resilience against these macroeconomic headwinds. With expectations that interest rates and market activity will adjust positively in 2024, we are well placed to benefit from a recovery in the mortgage market.
We continue to benefit from structural drivers including increasing regulatory requirements as a result of the FCA Consumer Duty regulation, being well positioned to support both financial intermediaries and product providers in evidencing suitability during the financial product development and sales lifecycle.
Our sustainable growth is complemented by strategic investments to improve and expand our offering, allowing us to better support our customers as they navigate an evolving UK financial services market. We maintain a strong M&A pipeline to continue to acquire complementary service offerings to our growing platform of services, underpinned by significant headroom in our £80m revolving Credit Facility.
Our strategy of creating a wider support platform for UK retail financial services will continue to enhance our future earnings, proposition and growth opportunities.
Matt Timmins, CEO adjunto de Fintel plc, dijo:
"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. 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 IP, as we continue to inspire better outcomes for UK retail financial services. Today, we welcome yet another market leader in Owen James Events, a business with huge potential, and our sixth acquisition in twelve months.
"We are confident of delivering further progress in the year ahead as we continue to scale our proposition, realise our very active M&A pipeline and invest in our service and technology platform, with our growth underpinned by recuring incomes and positive structural market drivers."
Aviso de resultados del año completo
Fintel tiene la intención de anunciar sus resultados del año completo para el año que finalizó el 31 de diciembre de 2023 el 19 de marzo de 2024.
Notas a pie de página
1El EBITDA ajustado son las ganancias antes de intereses, impuestos, depreciación, amortización, cargos por opciones sobre acciones y costos operativos excepcionales.
2 La posición de caja neta excluye cualquier ajuste según la IFRS16 "Contabilidad de arrendamiento" y compara los saldos de caja brutos con los préstamos brutos bajo la línea de crédito renovable de 80 millones de libras esterlinas del Grupo.
3El negocio principal excluye los ingresos por gestión de paneles y topografía.
4Like-for-like basis strips out the impact of acquisitions and the changes in revenue recognition of a software reseller agreement.
Para más información, por favor póngase en contacto con:
fintel plc Matt Timmins (consejero delegado conjunto) Neil Stevens (consejero delegado conjunto) David Thompson (director financiero)
| a través del Grupo MHP |
Zeus (Asesor Designado y Consejero Conjunto) Broker) Martín Green dan bate
| +44 0 20 3829 5000 |
Investec Bank (Conjunto Broker) bruce garrow David Anderson harry hargreaves
| +44 0 20 7597 5970
|
Grupo MHP (relaciones públicas financieras) Reg Hoare Robert Collett-Creedy
| +44 (0) 7736 464749 |
Notas a los editores
Fintel es la empresa líder en servicios de apoyo y fintech del Reino Unido, que combina el mayor proveedor de apoyo empresarial intermediario, SimplyBiz, y el negocio líder en investigación, calificación y fintech, Defaqto.
Fintel proporciona tecnología, cumplimiento y soporte regulatorio a miles de empresas intermediarias, datos y servicios de distribución dirigidos a cientos de proveedores de productos y empodera a millones de consumidores para que tomen decisiones financieras mejor informadas. Servimos a nuestros clientes a través de tres divisiones principales:
La división de Servicios Intermediarios proporciona tecnología, cumplimiento y apoyo regulatorio a miles de empresas intermediarias a través de un modelo integral de membresía. Los miembros incluyen IFA autorizados directamente, Wealth Managers y Mortgage Brokers.
La división de Canales de Distribución ofrece información y análisis del mercado y estrategias de distribución específicas a instituciones financieras y proveedores de productos. Entre sus clientes se incluyen las principales compañías de vida y pensiones, casas de inversión, bancos y sociedades de construcción.
La división Fintech and Research (Defaqto) proporciona software, información financiera e investigación de productos líderes en el mercado a proveedores e intermediarios de productos. Defaqto también proporciona calificaciones de productos (Star Ratings) en miles de productos financieros. Los productos financieros son revisados por expertos por el equipo de investigación de Defaqto y se comparan y califican en función de sus características y beneficios subyacentes. Las calificaciones defaqto ayudan a los consumidores a comparar y comprar productos financieros con confianza.
Para obtener más información sobre Fintel, visite el sitio web: www.wearefintel.com
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