Fintel warns of lower full-year profits after series of acquisitions

Financial support services provider Fintel reported revenue and profit growth in its results for the half-year ended June 30, 2024. However, the company warned of lower profits for the full year due to a series of acquisitions this year.

The AIM-listed company saw total revenue rise to £35.7m in the first half of 2024, up 13% year-on-year.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose seven per cent from £9m to £9.6m.

While Fintel is confident of hitting its revenue target, it cautioned that its full-year EBITDA would be “slightly lower than expected” due to additional employee costs as the company works to realize revenue synergies from a number of recent acquisitions.

Fintel, parent company of Simplybiz, has completed four acquisitions to date, including Threesixty Services, ifaDASH, Owen James and Synaptic Software.

One conditional acquisition announced after the half-year end still requires regulatory approval.

Matt Timmins, Co-CEO, said: “With four acquisitions this year, and eight in total in the last twelve months, we have significantly expanded the scale of our business, capabilities and intellectual property, while accelerating investment in our core propositions and technology offering.

“With our strong strategic foundations, we are well positioned to capitalize on growth opportunities across our broad family of brands, supported by the strength of our balance sheet.

“Current revenue performance is solid and we are confident that we will meet our full-year revenue expectations as we continue to drive improved performance across retail financial services,” Timmins added.