Fintel’s intermediation services division posts pre-tax profit of £5.3m in the first half of the year

Fintel’s intermediation services business posted pre-tax profits of £5.3m in the first half of the year, up from £5.2m the previous year.

Fintel’s latest results show that income from membership fees in its brokerage business came in at £7.5m during the period, up 25%.

The Intermediary Services Division provides compliance and regulatory services to individual financial intermediary firms.

The decline in membership fee income was due to the acquisition of VouchedFor, which reduced organic membership fees by around £200,000 to £5.8m.

Software licensing revenue in the Brokerage Services business was £2.1 million, down from £2.7 million. This was attributable to a change in the contractual terms of a major software reseller agreement, which is recognised on a net basis, but was offset by £1.2 million of inorganic revenue from Competent Adviser and Synaptic.

Revenue from ancillary services was £1.8m, which is comparable with the previous year.

Fintel said it had made four acquisitions in its brokerage business since July, generating £2.9m in revenue and total pre-tax profit of £300,000.

The report noted: “Structural headwinds in the mortgage market and a rapid, temporary increase in consolidation have led to reduced membership in this division.

“Both of these headwinds are now calming and with the increased number of services and technologies offered within this division, combined with the acquisition of Threesixty, which significantly increased this customer base, we are confident of continued growth.”

The company added that it was “well-positioned to continue to benefit from increasing regulatory pressure, including consumer duty regulation.”

Matt Timmins, CEO of Fintel, said: “Fintel delivered solid financial results in the first half of 2024, while continuing to strategically expand through further acquisitions and organic investments.

“With four acquisitions this year, and eight in total over the past 12 months, we have significantly expanded the scale of our business, capabilities and intellectual property, while accelerating investment in our core propositions and technology offerings.

“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 revenues are solid and we are confident that we will meet our full-year revenue expectations as we continue to drive improved performance across our retail financial services business.”

Anna is currently Deputy Editor of Mortgage Solutions and Editor of Specialist Lending Solutions. She has been working as a journalist since 2019, after gaining the Gold Standard NCTJ Diploma from News Associates in an accelerated six-month course. She began her career as a reporter for specialist publication The Insurance Insider, covering a wide range of topics before joining Mortgage Solutions and Specialist Lending Solutions in 2021. In her role, she helps to create and structure the news programme for the day and writes press releases, reports, interviews, analysis and exclusives for both titles. She also commissions blogs for Specialist Lending Solutions and runs online masterclasses and in-person events across the firm. She has been nominated for three journalism awards, including the BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023. Before becoming a journalist, Anna worked in e-commerce at Snow + Rock, Cycle Surgery and Runners Need, and before that at financial PR firm Rostrum. In her free time, Anna enjoys reading, watching live music and cooking for friends and family. When she has the chance, she also enjoys hiking, skiing and rock climbing.