FTSE 100: Index falls as earnings results weigh; pound below $1.33, Bodycote soars
On Tuesday, Stifel analysts initiated coverage on Fintel Plc (FNTL:LN), a specialist business services and fintech provider, with a Buy rating and a price target of GBP3.50. The firm recognized Fintel’s strong performance in the UK retail financial services market since its founding in 2002 and its public listing on the AIM market in April 2018.
Fintel, under the leadership of joint CEOs Matt Timmins and Neil Stevens, who will step down in June 2025, has achieved a compound annual growth rate (CAGR) of approximately 12% in adjusted EBITDA since its listing. Stifel highlighted the company’s strategic acquisitions, such as the platform acquisition of Defaqto, and its ability to secure bolt-on deals that have bolstered its growth.
The company’s financial structure is built on a high-quality platform with robust recurring core revenues, which constitute about 64% of its income, and strong EBITDA margins of around 31%. Fintel operates through three main divisions: Intermediary Services, which contributes roughly 37% of sales; Distribution Channels, accounting for about 30%; and Fintech & Research, making up approximately 33%.
Stifel’s analysts find Fintel’s financial targets realistic, which include organic core revenue growth of 5-7% per annum, 70-80% recurring core revenues, and an adjusted EBITDA margin of 35-40%. The firm’s ability to consistently execute its strategy, combined with its ongoing mergers and acquisitions, presents a scenario where Fintel could potentially nearly double its adjusted EBITDA over the next five years, a prospect Stifel finds compelling.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.