Fintel, the parent company of SimplyBiz and Defacto, has seen profits fall 32.3% in the first half of the year.
In the first six months of 2024 Fintel saw its profit after tax drop to £2.3m from £3.4m in the same period last year, according to results for the six months to 30 June 2024.
However, the group also saw core revenue climb 13% year-on-year – to £31.2m from £27.6m in the same period of last year.
It also saw software as a service (SaaS) and subscription revenue grow to £20.0m from £18.8m, up 6% and representing 65% of core revenue.
Acquisitions and expansion
Other milestones over the period included an expansion of its desktop as a service (DaaS) proposition into the employee benefits sector and the development of a mortgage portal delivering industry insights.
The group also completed four acquisitions completed including provider of compliance and business support services Threesixty Services, reg-tech solution provider IfaDASH, strategic engagement events provider Owen James, and independent provider of financial adviser planning and research software Synaptic Software.
It also announced the conditional acquisition of fund ratings and research agency Rayner Spencer Mills Research, which is subject to regulatory approval and a minority investment in provider of technology to the mortgage industry Mortgage Brain, alongside a new distribution agreement.
Strongly positioned
Matt Timmins, joint CEO at Fintel, (pictured) said: “Fintel delivered a strong financial performance during the first half of 2024, whilst continuing to expand strategically through further acquisitions and organic investments.
“Completing four acquisitions year-to-date, totalling 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,” Timmins said.
“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.”