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SimplyBiz delivers 15 per cent profit growth in H1 2023

  • 19/09/2023
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SimplyBiz delivers 15 per cent profit growth in H1 2023
SimplyBiz, the intermediary services division of Fintel, has reported a gross profit of £5.2m in the six months to 30 June 2023, against £4.5m last year.

In its unaudited interim results, the group said this was driven by the expansion of its regulatory technology offering as well as the digitisation and growth of its compliance proposition. 

Its gross profit margin improved from 39.3 per cent to 45.2 per cent, 

SimplyBiz generated £2.8m income from its additional services, which was higher than the previous year’s £2.6m and its membership fee income rose six per cent to £6m. 

The income received from its software licence declined by 14 per cent to £2.7m. 

Across its distribution division, which provides data, distribution and marketing services to product providers, revenue dropped 12 per cent to £9.9m. The group again cited instability in the housing market. 

Its core commission revenues were also hit by the UK housing market, as this fell 13.4 per cent to £3.4m. 

It closed the period with a gross profit of £3.6m, down from £4.5m last year and a gross profit margin of 36.7 per cent, slightly smaller than the last year’s margin of 39.2 per cent. 

Fintel’s Defaqto business, which delivers software, financial information and product research to providers and intermediaries, reported a gross profit of £6.3m. This was up from £5.7m in 2022. 

Defacto’s gross profit margin was stable at 61 per cent, compared to last year’s 60.9 per cent. 


Steady performance 

Fintel ended the period with a profit after tax of £5m, which was a slight dip on the previous year’s £5.3m. 

Its revenue fell from £32.2m last year to £31.7m and it saw a 16 per cent fall in statutory EBITDA to £6.7m. 

The firm said this was impacted by the renegotiation of a contract with an existing vendor and the volatility in the UK housing market reducing its commission income from its mortgage lending panel by around a fifth. 

Its core software as a service (SaaS) and subscription revenue went up six per cent annually to £18.8m and now accounts for 68 per cent of its core revenue. 

Fintel said its balance sheet showed “strength” and it had an undrawn revolving credit facility of £80m, which gave it “financial flexibility” and the ability to “capitalise on organic and M&A opportunities”. 

Matt Timmins (pictured), joint CEO of Fintel, said: “Fintel delivered a positive financial and operational performance during the first half of 2023 and continued to make significant progress in line with its strategic plan. We have increased investment into our technology and service platform, with earnings enhancing acquisitions expanding our unique proposition and driving future growth opportunities. 

“Our diverse client base and proposition, combined with the cash generative nature of our business, provide resilience to tough market conditions and ensure we are well placed to capitalise on the growth opportunities arising from an evolving UK financial services landscape.” 

He added: “Current trading remains encouraging and in line with our expectations. Together with the strength of our balance sheet and positive qualified M&A pipeline, we are confident of delivering further strategic progress and accelerating growth, as we continue to inspire better outcomes for retail financial services.” 

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