Fintel : Annual Report & Accounts 2022

Inspiring better outcomes

Operating at the heart of the market, we're the connecting force within retail financial services. By simplifying and improving the complex financial services world, we inspire better outcomes for everyone.

B Visit our website to find out more:www.wearefintel.com

Highlights

Operational highlights

• Continued growth in recurring revenue across all three operating divisions
• • Significant progress in conversion of partner revenue to Distribution as a Service subscription agreements
• Multiple growth drivers
• • Extension of core compliance offering
  • Major upgrade to our proprietary financial planning technology
  • Continued expansion of Defaqto's research and ratings platform
  • Launch of Fintel Labs incubator to strengthen technology proposition and support innovation across the market
  • Selective M&A pipeline expected to enhance growth in the medium term

Financial highlights

• Core* revenue growth of 8% to £56.4m (FY21: £52.2m)
• Core adjusted EBITDA growth of 9% to £18.6m (FY21: £17.1m)
• Statutory revenue growth of 4% to £66.5m (FY21: £63.9m)
• Strong balance sheet with positive net cash of £12.8m (FY21: £2.6m) and £80m revolving credit facility, fully repaid and undrawn since June 2022
• Final dividend of 2.25 pence per share resulting in a full year dividend of 3.25 pence (FY21: 3.00p per share)

Contents

Strategic report

IFC Highlights

1. Our strategic framework
2. At a glance

1. Investment case
2. Chair's statement

1. Joint Chief Executive Officers' statement

1. Markets
2. Business model
3. Stakeholder engagement

1. Our strategy

1. KPIs
2. Innovation and digitisation

1. People and culture

1. ESG

1. Financial review

1. Risk management report

1. Viability statement

Corporate governance

42 Board of Directors

44 Corporate governance report

£18.6m +9%

202015.6

Statutory EBITDA*** (£m)

£16.7m -33%

202216.7

202015.6

Alternative performance measures

• Core business excludes revenues from panel management, surveying and employee benefits software up to the date of strategic disposal of Zest Technology in 2021.
• Throughout the Annual Report we quote non-GAAP measures to demonstrate underlying business performance. Underlying measures allow management and investors to compare performance without the potentially distorting effects of one-off and/or non-operational items. Further details and reconciliations to non-GAAP measures are provided in note 9, page 83, to the financial statements.
• Statutory EBITDA in 2021 includes exceptional income of £7.8m. Statutory EBITDA in 2022 includes exceptional costs of £1.4m.

Financial statements

60 Independent auditor's report

1. Consolidated statement of profit or loss and other comprehensive income
2. Consolidated statement of financial position

1. Company statement of financial position
2. Consolidated statement of changes in equity
3. Company statement of changes in equity

1. Consolidated statement of cash flows
2. Notes

1. Notice of annual general meeting

1. Company information

1

Our purpose

To inspire better outcomes within retail financial services

Our mission

To simplify and improve UK retail financial services by acting in the best interests of the market

Our values

Knowledge

Influence

Excellence

Make smarter

financial decisions

Product comparison

Key

drivers

Increase usage of

Distribution as a

Service model

Develop data services

Increase usage of fintech

Develop regulatory

technology

Expand service and technology platform

Develop digital

client portals

1. Our markets on page 11

At a glance

Connecting and enabling retail financial services

Our leading brands

A unique market position

Operating at the heart of the market, we help it operate more effectively through technology, people and insights.

>£42bn

of investment recommendations were made through Fintel's proprietary advice technology

The UK's leading financial information, ratings and fintech business, helping financial institutions, intermediaries and consumers to make smarter financial decisions.

75%

prompted consumer brand awareness

98%

finance professional awareness

>30%

of retail investment advisers and wealth managers use Defaqto's proprietary financial planning software

B Find out more on www.defaqto.com

The UK's largest provider of business and regulatory support, helping financial professionals operate more effectively and deliver better outcomes for consumers.

Winner of Professional Adviser "Best Support Services for Advisers" award for five consecutive years (2018-2022)

>£25bn

of mortgage lending was arranged through our intermediary members

19%

of all new IFA, mortgage and consumer credit firm regulatory applications were advised by SimplyBiz experts

B Find out more on www.simplybiz.co.uk

Connecting the market

Simplifying a fragmented market, we connect product providers and intermediaries, bringing them together on an unparalleled scale to inspire better outcomes for all.

>18,000

attendees at the industry's largest event programme for intermediaries

Enabling the market

Empowering product providers, intermediaries and consumers, we give them the tools, knowledge and insights to make smarter financial decisions.

>10,000

financial intermediaries are supported by Fintel's service and technology platform