23 March 2021

Full Year Results for the Twelve Months ended 31 December 2020

2020 Resilient Trading, Robust Earnings, Strong Cash Flows and Digital Growth

Fintel (AIM: FNTL), the leading provider of fintech and support services to the UK retail financial services sector, today announces its audited consolidated results for the twelve months ended 31 December 2020.

Financial highlights:

  • Resilient revenues - £61.0m (FY19: £62.8m)
  • Stable operating profit - £11.4m (FY19: £12.0m)
  • Strong adjusted EBITDA* 1 - £17.3m (FY19: £17.7m)
  • Robust EBITDA* 1 margin - 28.4% (FY19: 28.2%)
  • Solid adjusted EPS * 2 - 11.3p (FY19: 12.9p)
  • Strong cash flow conversion* 3 of 69% (FY19: 46%)

Operational highlights:

  • Rapidly accelerated digital strategy
  • Good growth in core intermediary customers
  • Strong growth in fintech contracts and recommendations
  • Robust growth in Defaqto Fund Mappings
  • Resilience in mortgage completions
  • Strengthened management team

 

Matt Timmins, Joint CEO of Fintel plc, commented:

"We are delighted to report strong, resilient trading and substantial growth in our digital delivery during a challenging year. Rapid and ongoing digital acceleration enabled us to deliver resilient revenues with a strong adjusted EBITDA margin and adjusted earnings marginally ahead of our July 2020 guidance. Our speedy deployment of our proprietary technology enabled all our customers to continue to use our services digitally, without any disruption.

"Our continued strong cashflow enabled us to reduce net debt efficiently, whilst delivering an ambitious and exciting R&D programme for future growth.

"The importance and value of our embedded services for our customers enabled us to grow in our core membership services, Fintech contracts and recommendations. We were delighted to receive increased customer engagement and satisfaction in the year - something we never take for granted at Fintel.

"The quality and resilience of our mortgage adviser business enabled us to deliver modest year on year growth in lending volume, albeit with lower net fees due to product mix.

"On behalf of the Board, I would like to thank all our Fintel colleagues, customers, and wider stakeholders for all their support during these unprecedented times."

* 1 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share option charges and operating exceptional costs. Adjusted profit before and profit after tax exclude operating exceptional costs and amortisation of intangible assets arising on acquisition.

* 2 Adjusted Earnings Per Share is calculated as adjusted profit after tax, which excludes operating exceptional costs and amortisation of intangible assets arising on acquisition, divided by the average number of ordinary shares in issue for the period. EPS floor communicated on 23 rd July 2020.

* 3 Free cash flow conversion is calculated as adjusted EBITDA, less working capital movements, lease payments, CAPEX, development expenditure, corporation tax paid and interest, as a percentage of Adjusted EBITDA.

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"Our team's dedication to sustainability has been outstanding, and this award recognises the real impact we’ve made together. From reducing emissions to minimising waste, these achievements reflect our commitment to embedding sustainability into everything we do at Fintel. We’re excited to build on this momentum and continue leading the way towards a more sustainable future."

Kate Kwiatkowska, Head of ESG and Corporate Marketing

"We are investing into fintech businesses, building a connected platform of solutions for intermediaries to use with their clients."

"The increasing regulation, the demand for integrated technology and the demand for data are the real tailwinds behind the business model. "

Matt Timmins, Joint CEO

“With our strategic foundations firmly in place, we are strongly positioned to capitalise on the growth opportunities across our extensive family of brands, underpinned by the strength of our balance sheet.

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.”

Matt Timmins, Joint CEO