Fintel has reported revenue growth on the back of acquisitions completed in 2023.
It completed four acquisitions, including Competent Adviser and MICAP in 2023, with initial net cash investment of £13.3m.
Fintel, the parent company of SimplyBiz and Defaqto, said it delivered combined core revenues of £1.5m last year on the back of these acquisitions.
The AIM-listed financial support services provider said there are more acquisitions in the pipeline.
The financial highlights are from the Fintel’s annual results up to 31 December 2023 published today (19 March). It showed “significant progress” on the firm’s strategic objectives.
Fintel said it registered sustained growth across core activities and organic investment into technology and research platforms.
Its revenue increased c.0.3% to £56.6m and grew 5.6% on a like-for-like basis. It delivered an adjusted EBITDA margin of 31.5% during a period of significant organic and inorganic investment.
There was growth in SaaS and Subscription revenue, which now represents 66.4% of core revenues. It was up 2.2% to £37.6m.
It also delivered strong growth in fintech software revenue of 11.5% following significant extension of proprietary software solutions. Distribution as a Service revenue grew by 24.9%.
The financial support services provider said it has consistently demonstrated strong profitability with adjusted EPS of 12.2p per share. Final dividend of 2.35p per share proposed, resulting in a full year dividend of 3.45p per share, an increase of 6.2% on prior year.
Fintel highlighted multiple growth drivers including increasing organic investment of £4.8m into the technology and service platform, enhancing the Consumer Duty support and technology package, and helping intermediaries to implement requirements.
Other drivers are expanding proprietary financial planning and competitor and market intelligence software solutions with the launch of four new modules, extending the ratings and reviews portfolio and expanding into the tax advantaged market.
