Financial services firm Fintel has announced a rise in half-year revenues and a £10 million sale of a subsidiary.
The Huddersfield firm, which provides fintech and support services to the UK retail financial services sector, has released a half-year trading update in which revenues increased 10% to £31.7m.
It also disclosed that it had sold Zest Technology for initial cash consideration of £10m, with the proceeds set to rise by another £1.5m if the business described as “non-core” hits certain targets.
Fintel – which this year re-branded from the SimplyBiz Group – said it was trading in line with board expectations and good progress had been made on its new digital operating model.
Joint chief executive Matt Timmins said: “We are delighted to report significant strategic progress and strong trading across the first six months of the year. We have successfully sold Zest Technology for an excellent price, allowing us to streamline the business in line with our strategy to focus on our core, and create funding headroom to support our future growth.
“Our ongoing and rapid digital acceleration means Fintel continues to grow with real momentum. We’re now in an even stronger financial position and developing the business with focus, pace and agility.”
The company said that adjusted EBITDA was up 12% to £8.3m in the first half of the year and cash flow conversion*2 expected to exceed 70%.