Fintel plc (LON:FNTL), a provider of software and services to the UK retail financial services sector, announced today the disposal of two non-core assets to Kairos Professional Services Limited.

The disposal is an important step in the strategic portfolio simplification of Fintel, enabling the Group to focus on its two divisional growth engines of Software & Data and Services.

Fintel has entered into a sale and purchase agreement (the “SPA”) with the Purchaser, pursuant to which Fintel has sold the entire issued share capital of Gateway Surveying Services Limited (GSS) and APS Legal & Associates Limited, for aggregate cash consideration of up to £1 million.

GSS provides property valuation services to mainstream UK lenders and generated revenue of approximately £9.7 million and EBITDA of approximately £0.8 million for the twelve months ended 31 December 2025.

APS provides will-writing and probate services via a network of associates and generated revenue of £1.5m and EBITDA of £0.1m for the twelve months ended 31 December 2025.

The Board of Fintel has conducted a thorough strategic review of the Group’s portfolio of businesses and has concluded that both GSS and APS are no longer core to the Group’s software and data-driven strategy, which is focused on scalable, higher margin and high-quality recurring revenues.

Together, the two businesses contribute a significant proportion of non-recurring revenues generated from a largely fixed cost base. In the 12 months to 31 December 2025, the businesses generated combined Revenue of £11.2m, and EBITDA of £0.9m, representing an EBITDA margin of c.8%, significantly lower than the current Group adjusted EBITDA margin of 30%.

The Disposal importantly takes the form of legal entity sale as opposed to a trade and asset sale and will result in the following strategically significant outcomes for Fintel:

• removal of the need to continue to insure, or insure on a ‘run off’ basis, approximately 500,000 previously completed property valuations.
• removal of custody risk of c.£11m of client money currently in probate.
• an approximate 16% reduction in the Group’s total workforce, further simplifying the Group’s operating structure and reducing its fixed cost base.

The Purchaser is owned and controlled by Neil Stevens, former Joint CEO of the Company and a former director of both businesses, who was previously responsible for overseeing their respective operations.

The terms of the SPA were negotiated on an arm’s length basis, and the Disposal has been structured to protect the interests of Fintel’s shareholders.

The Disposal is expected to generate gross proceeds of up to £1m for Fintel, of which £0.6m is in the form of fixed consideration payable in cash. The remaining cash consideration, estimated at £0.4m, is payable on GSS achieving certain profitability targets in the first two years under this new ownership.

Matt Timmins, Chief Executive Officer of Fintel plc, commented:

“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 & Data and Services. 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.”