Fintel plc (LON:FNTL), the leading provider of fintech and support services to the UK Retail Financial Services sector, has announced its unaudited consolidated 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”)
Dividend
The Board intends to pay an interim dividend of 1.0p per share, on or around 4 November 2021.
*1 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share option charges and exceptional operating costs.
*2 Adjusted PBT is calculated as adjusted profit before tax, which excludes exceptional operating costs and amortisation of intangible assets arising on acquisition.
*3 Adjusted Earnings Per Share is calculated as adjusted profit after tax, which excludes exceptional operating 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 and interest paid, as a percentage of Adjusted EBITDA.
*5Net debt position is shown on a proforma basis at 30 June 2021 including the effect of the sale of Zest Technology and Verbatim funds.
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”
