Fintel
Website:
Fintel
Index:
AIM
EPIC: FNTL
Supersector:
Industrial Goods and Services
Sector:
Support Services
Subsector:
Business Support Services
Market Cap:
£188.59M
Payout Frequency: Semi-Annual
Fintel Dividend Analysis and Summary
Key Dividend Details
- Proposed final dividend: 2.50p per share (FY25)
- Total FY25 dividend: 3.80p per share (+4.1% YoY vs 3.65p)
- Ex-dividend date: 28/05/2026
- Record date: 29/05/2026
- Payment date: 18/06/2026
- Status: Final dividend subject to AGM approval
- Dividend cover (earnings): c.3.6x on adjusted EPS (13.7p vs 3.8p); c.1.6x on statutory EPS (6.1p)
- Cash coverage: FY25 free cash flow £15.7m vs cash dividends paid £3.9m (~4.0x cover)
Dividend Sustainability and Growth
- Coverage is robust on both earnings and cash metrics, with conservative payout (c.28% of adjusted EPS).
- Quality of earnings supports resilience: 57% of revenue from SaaS & subscriptions; adjusted EBITDA margin up to 30.1%; underlying operating cash conversion 102%.
- Balance sheet headroom: net debt £31.1m (leverage 1.2x), cash £17.3m, and £72.5m undrawn on the enlarged £120m RCF.
- Policy: Board reiterates a progressive and sustainable dividend, balanced with organic investment and selective M&A. Given current cover and cash generation, mid-single-digit dividend growth looks supportable if trading remains in line.
Support from Financial Performance and Capital Allocation
- FY25 performance: revenue £85.9m (+10%), adjusted EBITDA £25.9m (+16.6%), adjusted EPS 13.7p (+3.8%).
- Capital allocation remains disciplined: ongoing product development (capitalised dev spend £4.2m), accretive M&A, and debt refinanced on better terms (lower margin; maturity to 2029).
- Cash generation ample to fund the dividend alongside investment: free cash flow £15.7m and strong covenant headroom.
Structural Changes and Potential Dividend Implications
- Operating model simplified into two divisions (Software & Data; Services) to drive scalability and margin leverage—supports long-term cash generation for dividends.
- M&A:
- RSMR (Jan 2025; 70%): contributed £3.4m revenue and £1.1m EBITDA in-period.
- Pearson Ham insurance pricing data business (Jan 19, 2026): expected earnings accretive in first full year.
- Plannr stake increased to 49% (associate), enhancing data/CRM capability.
Integration and synergy capture should enhance recurring revenue and margins, underpinning dividend capacity; near-term integration spend and deferred/contingent consideration introduce timing effects on cash flows but appear manageable.
- Financing: RCF expanded to £120m with improved terms, providing flexibility without pressuring the dividend given low current leverage.
Risks and Flags to Dividend Stability
- Organic growth softness (like-for-like +0.8%) and IFA market consolidation continue to weigh on core memberships (Simplybiz membership fees down to £8.7m); management expects easing but this remains a watch-item.
- Integration/M&A execution risk and ongoing non-underlying costs (£9.3m) could affect near-term cash flow timing; contingent/deferred consideration liabilities outstanding.
- Regulatory change pace (e.g., Consumer Duty) drives demand for services but can create operational complexity for clients and the Group.
- Leverage is modest, but reliance on RCF implies some interest rate sensitivity; currently well within covenants.
Read more
Fintel Annual Dividend Yield - 2.1%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 22/05/2025 |
18/06/2025 |
Final |
2.45p |
GBX |
| 25/09/2025 |
31/10/2025 |
Interim |
1.30p |
GBX |
Total (Annual Dividends Per Share):
3.75p
Dividend Yield =
Annual Dividends Per Share (3.75p)
÷ Share Price (178.5p)
= 2.1%
Fintel Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 28/05/2026 |
18/06/2026 |
Final |
2.5000p |
GBX |
| 25/09/2025 |
31/10/2025 |
Interim |
1.30p |
GBX |
| 22/05/2025 |
18/06/2025 |
Final |
2.45p |
GBX |
| 26/09/2024 |
01/11/2024 |
Interim |
1.20p |
GBX |
| 23/05/2024 |
19/06/2024 |
Final |
2.35p |
GBX |
| 28/09/2023 |
03/11/2023 |
Interim |
1.10p |
GBX |
| 18/05/2023 |
19/06/2023 |
Final |
2.25p |
GBX |
| 29/09/2022 |
04/11/2022 |
Interim |
1.00p |
GBX |
| 28/04/2022 |
07/06/2022 |
Q4 |
2.00 |
|
| 28/04/2022 |
07/06/2022 |
Final |
2.00p |
GBX |
| 30/09/2021 |
04/11/2021 |
Interim |
1.00p |
GBX |
| 30/09/2021 |
04/11/2021 |
Q2 |
1.00 |
|
| 08/04/2021 |
07/05/2021 |
Q4 |
2.85 |
|
| 08/04/2021 |
07/05/2021 |
Final |
2.85p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
1.200 |
2.350 |
GBX |
3.550 |
5.970 |
| 2023 |
1.100 |
2.250 |
GBX |
3.350 |
-33.000 |
| 2022 |
1.000 |
2.000 |
|
5.000 |
-35.060 |
| 2021 |
1.000 |
2.850 |
|
7.700 |
|
Fintel Dividend Calculator
Fintel Dividend Growth
| Dividend Growth (1Y) |
4.11%
|
| Dividend CAGR (5Y) |
5.92%
|
| Years of Growth |
3
|
| Payout Ratio |
61.9%
|
| Buyback Yield |
-0.02%
|
| Shareholder Yield |
2.08%
|
| P/E Ratio (TTM) | 29.94 |
|---|
| Forward P/E | 11.81 |
|---|
| P/FCF | 10.42 |
|---|
| Earnings Yield | 3.34% |
|---|
| FCF Yield | 9.6% |
|---|
| ROE | 6.36% |
|---|
| ROCE | 10.93% |
|---|
| Profit Margin | 7.33% |
|---|
| Operating Margin | 20.72% |
|---|
| Gross Margin | 25.26% |
|---|