According to Fintel’s latest results, membership fee income in the intermediary services division came to £7.5m during the period, an increase of 25%.

The intermediary services division offers compliance and regulation services to individual financial intermediary member firms.

The drop in member fee income was driven by the acquisition of VouchedFor, adding that organic membership fees fell by around £200,000 to £5.8m.

Software licence income in the intermediary services division came to £2.1m, a decrease from £2.7m. This was attributed to a change in contractual terms of primary software reseller agreement which is recognised on a net basis, but was offset by £1.2m of inorganic revenue from Competent Adviser and Synaptic.

Additional services income stood at £1.8m, which is consistent with last year.

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Fintel said that it had made four acquisitions in the intermediary services division since July, which contributed £2.9m in revenue and total gross profit of £300,000.

The report noted: “Structural headwinds in the mortgage market and the rapid, temporary growth in consolidation has led to reduction in member numbers in this division.

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

The firm added that the company was “well positioned to continue benefitting from increasing regulatory pressure, including Consumer Duty regulation”.

Matt Timmins, joint CEO of Fintel, 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 12 months, we have significantly enhanced our scale, capabilities and IP, whilst accelerating investment into our core propositions and technology offering.

“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.”