Fintel disposes of two non-core businesses

23rd Apr 2026 15:35

(Sharecast News) - Fintel said on Thursday that it has disposed of two non-core businesses, Gateway Surveying Services and APS Legal & Associates, to Kairos Professional Services for a total cash consideration of up to £1m, as part of a strategic simplification of its portfolio.

The AIM-traded provider of software and services to the UK retail financial services sector said the sale would allow it to sharpen its focus on its two main growth divisions - software and data, and services.

Gateway Surveying Services generated revenue of about £9.7m and EBITDA of about £0.8m in the 12 months ended 31 December, while APS Legal & Associates generated revenue of £1.5m and EBITDA of £0.1m over the same period.

Together, the businesses contributed £11.2m of revenue and £0.9 million of EBITDA, equivalent to a margin of about 8%, below Fintel's current group adjusted EBITDA margin of 30%, the company said.

Fintel added that the disposal, structured as a legal entity sale, would remove the need to insure around 500,000 previously-completed property valuations, eliminate custody risk linked to about £11m of client money in probate, and reduce the group's total workforce by about 16%.

It said the disposal was expected to generate gross proceeds of up to £1m, comprising £0.6m of fixed cash consideration and up to £0.4m contingent on Gateway Surveying Services achieving certain profitability targets in its first two years under new ownership.

The buyer would also be subject to an anti-embarrassment provision under which Fintel would share in any uplift in value from any onward sale of either business within three years of completion.

"We are pleased to have completed this disposal, which represents an important step in the strategic portfolio simplification of Fintel, enabling us to focus on our two divisional growth engines of software and data, and services," said chief executive Matt Timmins.

"The disposal also reduces complexity in the group, removes significant operational risks, whilst supporting improved capital allocation, and enabling focused investment in higher growth, higher margin areas of the group."

Fintel said the purchaser was controlled by Neil Stevens, Fintel's former joint chief executive and a former director of both businesses, making the deal a related party transaction under the AIM rules.

It said its directors, having consulted nominated adviser Cavendish Capital Markets, considered the terms of the disposal fair and reasonable for shareholders.

At 1510 BST, shares in Fintel were down 0.74% at 184.13p.

Reporting by Josh White for Sharecast.com.

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