Financial services tech provider Fintel has hinted at further acquisitions amid a rise in revenue and underlying operating profits.
Half year results for the Huddersfield firm include mention of a new £120m revolving credit facility which bosses say will give it more fire power for strategic M&A activity. It follows Fintel's latest acquisition, the purchase of a larger stake in Plannr Technology in July.
CEO Matt Timmins said the group had been successful at integrating acquisitions made over recent years into two divisions spanning software and data and services. That has been part of an effort to simplify Fintel's structure and move to a model based on software, data and recurring revenue.
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Half year numbers published to the London Stock Exchange show revenue grew 18.6% to £42.4m and underlying operating profit rose from £4m in the first half of 2024 to £5.1m. Group adjusted Ebitda was up 17% to £11.2m with the firm's balance sheet said to be "very flexible" including £8.4m cash and net debt of £30.1m after acquisitions, along with £81.5m headroom in its £120m revolving credit facility.
Fintel's Software and Data division includes key tools such as Defaqto, Fintel IQ and Matrix360. It saw a revenue increase of 17% to £18.4m with £12.3m in recurring revenue and a 6% rise in organic revenue to £16.7m. Meanwhile the Services business saw a 20% rise in revenue to £24m with recurring revenue of £11.9m, up from £9.1m in the same period last year.
Mr Timmins said: "Fintel has delivered a strong first-half performance, with double-digit revenue and Ebitda growth reflecting the strength of our business model and the quality of our earnings. We have also made significant strategic progress, successfully integrating nine acquisitions into two complementary divisions.
"This transformation marks a pivotal moment for Fintel, enabling us to concentrate resources on our most attractive markets and propositions, while providing a clear framework for innovation and growth as we transition to a software and data-led business built on recurring revenues.
"With a streamlined operating structure, a scalable and agile operating model, and continued investment in high-margin, recurring software and data revenues, we are better positioned than ever to capture the substantial opportunities ahead. We are confident in delivering against our full year expectations and continue to focus on driving better outcomes for our customers, partners, and shareholders.''