The publicly-listed fintech company from London, Fintel (AIM: FNTL), announced financial results for the first half of 2024 today (Tuesday), marked by strategic acquisitions and organic growth. Despite a rebound in revenue and EBITDA, net profit fell by over 30% to £2.3 million from the £3.4 million reported the previous year.

Fintel Reports Strong First Half 2024

The company reported a 13% increase in core revenue to £31.2 million for the six months ended June 30, compared to £27.6 million in the same period last year. Core adjusted EBITDA rose 5% to £9.3 million, while the adjusted EBITDA margin slightly decreased to 26.8% from 28.3% in the first half of 2023.

Fintel's SaaS and subscription revenue, a key focus area for the company, grew 6% to £20 million, representing 65% of core revenue.

“With our strategic foundations firmly in place, we are strongly positioned to capitalize on the growth opportunities across our extensive family of brands, underpinned by the strength of our balance sheet,” commented Matt Timmins, Joint CEO of Fintel.

In January, the company disclosed its results for the entire 2023. Adjusted EBITDA increased by 6% to £20.5 million, up from £19.4 million in 2022. Excluding mortgage brokerage and surveying services, the company's core revenue rose by 0.3% to £56.6 million.

Expansion Through Acquisitions

In addition, the company completed four acquisitions year-to-date, bringing the total to eight in the last twelve months. Notable acquisitions include Threesixty Services, a provider of compliance and business support services, and Synaptic Software, an independent provider of financial adviser planning and research software.

“Completing four acquisitions year-to-date, totaling eight in the last twelve months, we have significantly enhanced our scale, capabilities and IP, whilst accelerating investment into our core propositions and technology offering,” added Timmins.

Despite the robust top-line growth, Fintel's cash position decreased to £7.4 million from £13.3 million in the first half of 2023, primarily due to £6.4 million deployed for strategic acquisitions and approximately £2.5 million invested in product development.

Looking ahead, Fintel expects to meet its full-year revenue expectations, citing positive market dynamics and ongoing demand for integrated technology solutions in the financial services sector. However, the company anticipates some pressure on EBITDA in the second half of 2024 due to additional staff costs related to recent acquisitions and investments in sales capabilities.

“Current trading is robust, and we are confident of meeting our full year revenue expectations, as we continue to inspire better outcomes for retail financial services,” concluded the CEO.

Shareholders did not receive the H1 2024 results warmly, and FNTL stocks fell by almost 6% at Tuesday’s market opening, testing August’s lows.