Fintel (LSE:FNTL) — Investor Presentation

0:00 Good afternoon, and welcome to the FINTEL PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via the q and a tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question that receives during the meeting itself. However, the company can review all questions submitted today and will publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. Like to hand you over to Neil Stevens, CEO. Good afternoon, sir.

0:32 Hello. Good afternoon, everyone. Thanks for joining us, and thanks to Investor Meet for hosting us. I'm joined today with co board colleague and CFO, David Thompson, and we're delighted to be able to take investors through the financial results for the full year of 2023. If, If you're not familiar with our sector, it's worth spending just a couple of minutes to talk about what a wonderful, vibrant, and full of opportunity sector retail financial services is in The UK. There are thousands of choices facing consumers to protect their wealth, their property, their families, their incomes, their retirement, and many hundreds of product providers fantastic products in a very competitive market.

1:22 This drives great consumer outcomes because the market has great competitive forces, lots of innovation, lots of choice for consumers. But decisions are complex. Trying to figure out what you need and who can provide it is tough. And because of that, over 80% of all retail financial services products outside of simple banking and mandatory insurance are purchased through intermediaries. These are the professionals who help the customer understand the problem and solve it with a good financial product. This market is heavily regulated for for many years. Mandatory regulations being in place, and that regulation covers the products themselves and the way they're marketed to and advised to customers.

2:11 The market's really fragmented as well, quite different from the European market as a as a example. The UK market is made up of thousands of smaller firms, all professional with the customer as their main concern and the the agent of the customer, and a a real need to obtain high quality data to understand all the changes that are happening in this market, the different products, the different legislations, and the different needs of customers. And because of that over many years, we've ended up in a market where there's lots of different unconnected technology solutions that try and solve all these problems. We think that's a really great place for FINTEL to solve problems.

2:59 We offer all the participants in the market, regulatory support, connected data and technology they need to get the job done, and The UK's most comprehensive product information and comparisons. We bring together all these different need areas into one platform to help get better outcomes from retail financial services. We have three main customer groups. The The product product providers, we help them understand the market, we help them access the market, and we help them design and manage their products to get the best outcome. The professional intermediaries, we provide them with the regulatory expertise, help them run their businesses, and the technology they need to look after their customers.

3:47 Product research, financial planning, integrated workflows, all the things that help a financial intermediary serve their clients effectively and profitably. And we provide indispensable services to the consumers, helping them understand financial products through our ratings and our reviews, helping to make comparisons, and to educate them on the needs and the problems they have and how financial products can solve those. We wanna make help consumers make smarter financial decisions. And because of the way we work across the sector and across these customer groups, we're able to learn new new things and to use that knowledge to inform the other market areas that we're in in a big virtuous circle, understanding the needs and preferences of consumers, the methods of business practices of the intermediaries, and the products and strategies of the providers, and how these things all interact as the world keeps changing.

4:50 So over twenty years now, FINTEL has bought has built up and bought up the most comprehensive platform for intermediaries to run their business. The things they need to do the practice management and all of the things they need to advise their clients through a connected platform of technology. There are thousands of small and medium and some larger intermediary firms in The UK who all have common needs for these different areas, and FINTEL is the first company to offer a connected platform, a one stop shop that someone can come to and get everything they need to operate. We think this is a really solid strategy to continue and accelerate our growth and value creation in the sector.

5:39 2023 was a year of continued progress for us. We had strong financial performance with core EBITDA growth of 9% and, a really strong EBITDA margin as we continue to offer high value services that are high profit. We've grown our dividend again, as we have done since launch, 6% dividend growth compared to the prior year. And we've been able to significantly accelerate our strategic delivery by making big investments in our organic technology and services and completing six acquisitions, four in 2023 with a further two just after the year end date. And indeed, we've been busy this week as well, so I have a few things to say about that.

6:29 We continue to win absolutely flagship partnerships with some of the biggest names in financial services. Couple of, highlights for us in 2023 include a big contract with BlackRock, a big extension with Money Supermarket, and the development of HSBC's protection products on our platform.

6:52 We are absolutely delighted to be number 14 of the best financial services companies to work for as well. Incredibly important are our people and the culture that we've fostered at FINTEL. And so a great year, in terms of financial performance, developing the platform, and positioning ourselves for 2024. Very high quality recurring income, great cash generation with underlying cash conversion remaining strong even with strong investment mandate, and we believe we are underpinned by very positive market dynamics. We'll talk a little bit more about as well. At this point, I'll hand to David, who'll take you through the financial summary.

7:40 Thanks, Neil. And afternoon, everyone. So just just to zoom in on a couple of things Neil was mentioning. Our recent, no. Not not so recent. Our capital markets day a couple years ago, we set out three financial KPIs that underpinned the the the really sticky business model that we've got, and they are to balance revenue growth, revenue quality, and profitability. So we we decided that the three key KPIs were, core revenue growth at five to 7% a year compounding, core adjusted EBITDA and profitability between 3540% margin, and the the mix of revenue that comes from SaaS and subscriptions being the the the stickiest and longest tenure, revenue between 7080%.

8:36 And you can see here the the the good progress that we continue to make across all those three financial metrics. So if we if we zoom into a a bit more detail on the the first one, which is the revenue, you can see they're working left to right. We've bridged the the the revenue growth year on year. So the first leg is the core organic revenue growth, and that's up 2,500,000 or 5.6%. So, again, in that five to 7% corridor that that we seek to to do. We also added 1,500,000 of revenue from the businesses we acquired in the period. And on an annualized basis for f y twenty four, that will be 6,600,000. So, again, you know, over 10% growth added from inorganic sources in in in the year to come.

9:26 We have a 2.8 reduction in revenue, from a from an accounting change to one of the key software reseller contracts we have. And and at its simplest, 2,800,000 comes off revenue and of cost of goods sold, because we're now on a on a agent basis rather than principal basis because we've managed to reduce the exposure to inventory and credit risk. So, you know, important to draw that out. 1,000,000, reduction in revenue comes from there's a part of our business that's about more transactional and it leads to the support we give to mortgage brokers, whereby we do lots of great subscription type services for them, but we also take a a small clip of the ticket on each and every mortgage that they write.

10:16 So that that that is a transactional stay revenue that that is a derivative of the of The UK housing market, and that dropped 20% in 2023, and therefore, that revenue fell from 5 to 4,000,000. So, again, you know, if if work working back from left to right, you know, the core organic growth at 5.6, we're pleased with that. It's in the corridor with more, inorganic revenue to to come. So we're happy with the revenue. Just to look at the revenue in a slightly different way, that's the revenue stack, and you can see there that, you know, the the most important driver of value is the SaaS and subscription revenue, and that's the the bottom green section. And you can see that extended from 65 to 66%.

11:02 And on a full year basis with the acquisitions, we'll see that trend up towards 70%. So achieving another one of our medium term financial targets, which is which is great to see. And finally, if we look at profitability in each of the segments, we can see that, essentially, it's almost a 50% gross margin in every one of our divisions now, primarily driven by operational gearing and the fact that as we move to sell more products in the shape of software licenses, they are near 100%, drop through cash margin. So as the as the operational leverage kicks in '24, we'll see the the gross profit of of the business go up to, 55 to 60%.

11:51 And that flows through to an EBITDA margin of 36%, again, in that range. So we're we're we're quite pleased with the performance in f y twenty three because we're either teching or about to tech each of our three core financial KPIs. And what what that does is it it it turns very readily into cash because of the the way that two thirds of the business is on a on a SaaS subscription monthly direct debit basis. Now what this slide seeks to do is it shows that the company IPO ed in 2018 and ten months later for a 130,000,000. Ten months later, we acquired de facto for 75,000,000.

12:36 That was a large acquisition relative to the to the IPO size. And that was affected through, both debt and equity. And at the point of, the day one acquisition of de facto, we had about 30,000,000 of gross debt and about two tons of leverage. And and, really, the impetus on the business was to delever as quickly as possible and and integrate the facto really well and and cross sell the services to existing customer base. And you can see there that by the half year in 2022, we'd paid off the last of the debt, and the facto had doubled its EBITDA from from just over 5,000,000 to just under 11,000,000 of EBITDA.

13:21 So, again, you know, three stripes on the shoulder for doing a great job of making a big acquisition, integrating it well, and demonstrating that the business can delever quickly.

13:32 The second half of twenty twenty two, we had a a a an an excellent balance sheet, albeit the the cash generation means we were just going to build cash, and, it was time for us to invest for growth again. And that's exactly what we've done f y '23 with the number of acquisitions that we've made, again, to fill that one stop shop for the the IFEs in the wealth space. And we'll go on to do that in the mortgage market, and they'll tell you a bit more about the mortgage payment investment that we've made this week. So in order to give a bit more granularity on the investment, you can see there that our cash balance of 12,800,000 last year and 12,700,000 this year doesn't tell you the story of the cash generation of the business. So, again, working left to right.

14:23 So the business generated just under 20,000,000 of cash from operations. We drew 11,000,000 of the 80,000,000 revolving credit facility, and we received 600,000 of deferred consideration from a disposal we made in 2021. So that gives over 44,000,000 of of cash resources. And and on the right hand side of that is how we've we've used how we've invested it for for shareholders' interest. So the the first four sort of lame green sections on investment, be that acquisition, development expenditure, other smaller invest investments in different businesses, and and that totals well over 20,000,000.

15:08 We've paid a 4,000,000 dividend in the year to to all the shareholders, paid 2.8 of tax, and there's a 500,000, nonutilization fee for access to the 80,000,000 revolver. So that's, you know, from the the really strong cash generation, that's what we've that's how we've invested it in 2023 to to, you know, further drive growth through the business. And one of the key metrics we also look at internally is cash conversion. And, really, this is a a yard step to make sure that we're controlling working capital well and that we sensibly deploy internal investment, as opposed to, you know, external acquisitions. And you can see there that, again, in the face of a a a more than doubling of our, development expenditure internally, we still got an 88% underlying operating cash flow conversion.

16:04 Our our medium term goal is to have that between 90 and a 100%. And, again, so, you know, the the ongoing investment will be 4,000,000 over the next couple of years, and that will see us firmly in that corridor. So the fourth underpin of the the profitability and revenue growth targets is converting it into cash, then we're gonna tick that box as well going forward. So so in summary, on on on f y twenty three itself, you know, very clearly a resilient financial performance in a macroeconomic environment of high inflation, claiming interest costs, but that that work that we've done since the acquisition of the fact to get the business into a really strong position from a a balance sheet strength and liquidity standpoint has has really helped us, grow and invest.

16:56 We've got increase in revenue quality in the core business. So more than ever before, the amount of revenue coming from SaaS and subscriptions that are the are the the stickiest revenue source. That's the the highest mix we've had. We've seen the strong cash generation, but you've also seen how we deploy that. And, as Neil mentioned, our progressive dividend policy, we've we've gone up 6% to 3.45p. It was a 1.1p per share, interim payment and a 2.35p per share payment will be made for the full year. And with that, I'll pass over to Neil who'll talk about more detail about the divisions. Thanks, David. So I talked earlier about these different customer sets and how, they are very interconnected When we achieve growth and development in one area, it generates IP or opportunities for growth in the other divisions.

17:53 It is, however, important each division performs well in in its own right, and I think it's, great to see yet again in 2023 strong divisional performance within each of the divisions. So intermediary services is, as it says, the services we provide to professional intermediaries. Vast majority of this is subscription revenues, signed, contracted, repeating monthly income with the additions of software and digitization coming through as part of our strategy as we turn more of what we do and know into software services. It strengthens both the revenue quality, and it gives us more incremental margin growth as well.

18:42 Good growth in profits, good growth in additional services as we roll out more support for our intermediary customers. One thing that remains, constant is changing legislation. And so every period, the regulators, and all of the regulators that have an effect on this sector make changes that intermediaries need to get up to speed with. The FCA bought the consumer duty in this year well, through last year into this year, massive piece of legislation that has a huge effect on the way businesses run and what they must do for their customers. And so that, of course, has meant we've been able to provide new services, expand our offering, look after our clients, basically, to make sure they're successful.

19:32 We continue to invest in RegTech. We've got the best team in the industry, brilliant people, loads of experience, fantastic culture. And in addition to having the best people, we're we're gonna have the best technology as well. So that may be things that we're requiring and things that we're building internally using the knowledge, skills, working methods from our teams to build new software products and connect them up. And so great heart of our business, strong growth, really important strategically. Next is the distribution channels division. This is where we help product providers bring their products to market. Here, we're winning some fantastic new contracts generally, and we're converting many of our long standing customers over onto new multiyear distribution as a service contracts.

20:27 In this area, it means that people you know, these big product providers are signing up to multiyear deals where they commit to purchase data and distribution services from us, and we have very forecastable, predictable cash flows and revenues. So it's been a big improvement in this area of our business in terms of the quality of income.

20:51 We're seeing, certain of our IP services really get scale. So strategic asset allocation is an example where we provide investment management companies with market data and data on portfolio allocation of client portfolios, and they pay us a license fee for using our IP in their products. And we're seeing some strong growth coming through in in that, which I think will be a a a component of growth for that division going forwards. We also get fantastic engagement. Over 18,000 attendees at our events program last year. This market needs engagement. There are so many different products, so many changes in the market, and all these thousands of businesses to connect to.

21:39 With a conduit for that. We provide the digital and face to face training events and platforms that helps educate and maintain the CPD of the professional adviser market, and that's of enormous value to the product providers to have access to that channel and the efficiencies that our channel brings. And so another great year for distribution channels, and a key component of growth for FINTEL. And the third division is fintech and research. This was the de facto business we acquired and brought in. And as David has said, you know, great results from being able to massively accelerate the growth of de facto, leveraging off the other divisions. We've seen good growth in organic revenues, even stronger growth in software revenues.

22:28 We've been investing heavily into financial planning software. It's landed perfectly in terms of timing with consumer duty coming in and the retirement advice review coming in from the regulator as well. We've prebuilt the answers and the solutions that will keep our customers compliant, and we'll see that as a very strong growth driver in terms of software sales for the business coming into 2024.

22:55 We also have seen continued significant growth in our product ratings revenue by acquiring the MyCat business and bringing it into de facto and extending our star ratings platform, we've been able to have a double win in terms of, you know, growing revenues and growing our engagement for product ratings across the specialized investment area in addition to the investment trust work we've done as well. So more data, more product research areas, more rating services just compounds the growth as we build bigger audiences and stronger software platforms. A quick word to say about m and a. We've been particularly active in the last seven or eight months after a period of being particularly inactive.

23:44 M and a is one part of our strategy. It's important, but it is one component of growth. David talked earlier about the financial objectives we have. We set those out in 2020, in the December 2020, right at the heart of the COVID lockdowns, and we set out a equity story for for FINTEL that could deliver consistently compounding revenue growth five to 7% whilst growing our margins to 35 to 40% and building high quality recurring revenues with very strong cash conversion. And we're delighted we're being able to deliver on that. Our guiding principles are around being customer led and data driven, building a great platform with fantastic people, and having strong brands in the market that really deliver the promise of value and, promise of products that are high quality.

24:44 Very clear about the customers and the markets we're in. We stick very close to the core. It's UK retail financial services. It's working across those three stakeholder groups, the providers, the intermediaries, the customers. And we see enormous capacity to grow and stick to core at the same time within that that fantastic market we're in. We continue to digitize our services. We want premium products and premium pricing. We wanna be the best at what we do and to charge appropriately for that. And as David said in 2024, we're ramping up our in 2023 and '24, we're ramping up our investment in innovation, and we're ramping up our digitization and product investments as well. So, the strategy isn't just m and a.

25:32 However, having had a period of not doing much m and a, the, backdrop has changed, and it's been the right time to act over the last seven or eight months. The cost of debt has driven out a lot of the deal activity that was overpriced. It's also meant that companies who were buying with the only components of value creation being leverage have had to look twice at the activity in the market. I think businesses have been sold to their natural owner much more over the last seven or eight months. And the businesses we've bought, we believe we are the natural owner for those businesses. We could bring them onto our platform and create genuine value by operating them in our market with our customers and alongside our other products.

26:19 We have a strong balance sheet and quality debt facility and a fantastic team who knows this market inside out and has the bandwidth to bring in these new products and businesses. We think we are uniquely positioned to unlock growth potential. We are very much owner mindset in this business. The tenure of our team is unrivaled. Matt and I have been running the business for a long time and working with our customers and partners for twenty years, and many of the other team members have very long tenure as well. And I think that does give us a very stable platform and a trusted platform and people to bring businesses into. And that strong reputation and the deep connections we have means that we originate the m and a. We don't buy at auction. We are working with founders, working with market participants, telling the story about how they could become part of the FINTEL family, and that can create value.

27:17 And I think that's, helps us originate some really attractive deals and buy things that, frankly, other people can't get access to. The deals we've done most recently are all, strong in their own rights. They bring really powerful capability to our platform. They are connected to the things we already do and the things we want to do, and each of them brings their own customer bases. Now there'll be loads of overlap across the sector between our existing customers and the customer sets of these businesses within each other as well, but it's just more touch points, more engagement, more data on what's happening in the market, and more abilities to connect services together so that somebody who uses Vouch four can easily access learning materials from competent adviser Or somebody who, uses the technology platform in Synaptic can access the de facto modules and increase their engagement with FINTEL more generally.

28:25 I'll, ask David to come back in at this point, and he'll just talk you through the financial, scorecards of the acquisition of the acquired portfolio. Sure thing. Thank you. And and, again, provide quite a lot of voluntary disclosure here in in in the next couple of slides around, you know, because, essentially, we're investing 20,000,000 plus of shareholders' money, and it's quite right that they can, as granularly granularly as possible, see what each of them is doing to to benchmark any return. So you can see there, this is this slide has the, the contribution in the period from the point of acquisition. So my cap and content adviser are included from, the midpoint in July, and EKG and verge forward completed end of October, starting November, respectively, and we include the results from that that point. So you can see the revenue, gross profit, and EBITDA from each of the four acquisitions in the period.

29:29 In total, 1,500,000 revenue, which you can pitch back to to slide 4,500,000 of gross profit, and 400,000 of EBITDA. And you can also, in the previous slide, see which of the three operating segments they they fit into so that you can track the organic and inorganic contribution individually and also see how each of them are are doing. But we also wanted to because we've been buying businesses from founders and not as part of processes, we've been able to have a a a really deep conversation with them about where they are in the cycle, and some have bought on a day one multiple that's higher than our trading multiple, some lower. But the point of we bought them for very good reason. And if you look at that bottom half of the page, that's what the we have in the market for consensus for how they contribute for the whole of the current financial year of 2024.

30:27 So, again, taking an extra step to show

30:30 the return on each of the investments. So you can see on a portfolio basis, we'll have acquired them for 13,300,000 of net upfront consideration. They will contribute 6,600,000 or just over 10%, of revenue growth at core, and they'll contribute 1,300,000 or somewhat high single digit percentage to EBITDA. But most importantly, that 1,300,000 EBITDA is just around a 10 times EVA EBITDA multiple on a blended basis, and that's that's a bit lower than what we're trading at at the moment. So to use this bluntest of rules of thumb, we're we're acquiring businesses on a portfolio basis at at a lower multiple than a trading multiple.

31:16 These all contribute to the highest quality SaaS and subscription revenues, which we're targeting to be between 7080% as our mix of total revenue. So, clearly, we'd like to think that we're value accretive not only from a raw multiple, arbitrage, but also from multiple expansion because we're adding to the to the mix of revenues. So I'll I'll pass back to Neil on on that. Thanks, David. Yeah. We're we're continuing, you know, that in that vein. We've got an active pipeline of bolt on and and some more strategic m and a we would like to do. We've got the bandwidth in terms of financial resources and operational resources to continue to make that work, strategic capacity to continue to originate very high quality deals that are very additive to the platform we're building and the financial capacity through, you know, an excellent debt facility and and very supportive shareholders as well that would enable us to reach for the bigger deals, which we will only do when they're right.

32:24 Tenure, I mentioned earlier, is really important. When we buy something, we think about its perpetual ability to create value and to be important as part of our platform. And so, you know, we're very prudent about making choices and selecting the right acquisition targets. When we've done it then, we've got a fantastic team.

32:45 And some of the acquired teams that we've brought into the business are part now of that strong team capable of delivering m and a and value creation, in the way that's consistent with our culture and, you know, reason for being in the business as well. The m and a strategy is very targeted. We wanna buy things that fit the bill of what we've described, high quality income, premium products, premium pricing. We want to make sure we're buying SaaS and subs That's high margin and very cash generative. It's gotta fit the platform we're building and be additive to our capability set, give us that scalability and new data, proprietary data that is of value across all those different segments that we serve.

33:34 We wanna grow the customer base, even further and, make sure that, we're taking our products to as much of this market as possible because it's, it really is the best stuff out there, and people need it to be successful. Saying just a couple of words about the outlook for 2024 particularly. David mentioned mortgage market, you know, has been soft in 2023. In our books, there's 1,000,000 of revenue suppression through directly related through the transaction volumes of mortgages, and that's, you know, really high margin business as well. We believe there are strong signs the mortgage market will recover quite well this year. There are 1,600,000 fixed term mortgages coming up for renewal in 2024, which is 1,600,000 households.

34:31 You've got a really important decision to make, and 80% of those decisions will be made with a professional mortgage broker. So we think, you know, that should be a tailwind for the mortgage sector in the year to come. We're seeing the legislation driving real change in the way people run their business and the requirement they have to gather good quality data on consumers, consumer outcomes, and benchmarking themselves against other companies and competitors, we're perfectly positioned to provide those services and see it as being a strong tailwind of growth. The product provider market particularly has stronger demands for data and market insights, which we're investing in and and developing and delivering more strongly in 2024.

35:22 And the overall picture of financial advice is good. More advisers are seeing more clients with higher average portfolio sizes and greater scope of advice. And so our investment in better financial planning systems will accelerate our growth yet again in the year to come. I've mentioned m and a is just one part of the picture. It's an important one, but those are the things that are equally important to us. Investing in the platform, digitizing digitizing our services, and delivering more data products, and growing the organic velocity with which we we sell into the market. So very confident of delivering the five to 7% organic growth, will be augmented by acquired growth.

36:13 And thereafter, there's really big potential to add other components of growth as we bring a stronger platform together, launch new products, and and potentially do larger enterprise deals as well. So lots of reasons to be cheerful and excited about developments at the business in the year to come. So I think at that point, we'll break for some questions, and it'd be great to hear your thoughts and understand the areas you'd like to explore with us. Neil, David, thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab situated on the top right hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can be accessed by our investor dashboard.

37:05 Neil, David, as you can see, we've received a number of questions throughout today's presentation. Can I please ask you to read out the questions and give responses while appropriate to do so? And I'll pick up from you at the end. Absolutely. So I'll I'll I'll pick one, and I'll let David pick one so we'll we'll share them out. So I can see Steven Kay has commented a great business model. Thank you, Steven. And asked what would enable you to accelerate growth. And so, you know, I'd I'd certainly go back to my just most recent comments that the core business we have, we're confident of it delivering five to 7% revenue growth. The acquired portfolio will accelerate on that core organic revenue growth, And I believe there are more opportunities to grow faster by combining our products and creating new data products and doing larger enterprise deals. So as we're able to offer more of a platform rather than selling individual components to individual buyers in the market, we can do larger deals for a connected set of software to larger companies.

38:17 And so so that's something we're gonna be focusing really, really keenly on in 2024. Steven also asked us a supplementary. Could you replicate the model overseas? And rather disappointingly, I'm gonna say no because, you know, we're we're UK focused only at this stage, and that that is quite an important part of our strategy and important part of my personal drive, you know, as to what we need to do next. Yes. Lots of software and and and IP, in theory, can translate to other markets. However, the devil's always in the detail, and we've seen lots of market entrants come to The UK to try and bring their software from The States or from Australia, try and bring their operating methods from other territories.

39:06 And the localization is often underestimated to a great extent. The differences between different markets makes all the difference as to whether you succeed or fail miserably. And so at this stage, we're a UK centric, UK solely focused growth story, and I think that will continue for the next phase. And And then then maybe we'll we'll get our heads up and think about it again at that point. Alright. So I'll take the next question. It's from David s who asks how we can leverage the recent acquisitions to drive further growth and market penetration. And I think slide 23 works really well here just to complement Neil's answer of the the enterprise deals where we sell the whole package. What what we've also got here is look at the different intermediary customer sets that all overlap. So if you imagine a big Venn diagram of hot leads because they do content advising their own James, but not synaptic, etcetera, and you can look at that. So we've got a a way of penetrating all of these customers that we have, organically grown and acquired.

40:23 You know, it's a it's a hotter lead. It's not a cold call, and you've got the ability to sort of penetrate the market and look at, enterprise license level sales. And and then Marcus asks, you know, I said, again, compliments us on a really strong performance. Thank you for that. What the target from recurring revenue as a percentage of total revenue, and that's between 7080%, and just to answer that question. And, again, the a follow on supplementary around how do you see the mix of organic versus inorganic growth with with the high margins and cash or the larger deals that would be more significant? Well, absolutely. So you can see it's gonna grow, an extra 10% both in revenue terms and profitability from inorganic to complement the organic targets.

41:12 And and that cash generation and immediate delevering effect means that we have about 60,000,000 of liquidity as it stands to go and look at, ever more acquisition of something in the in the mortgage space to complete the the the mortgage brokers one stop shop, jigsaw, and also look at, you know, customer acquisition. So we've we've got a despite despite having completed eight transactions in the last year, there's you know, we're we're we're into our stride now, and and and we really want to to do more. Neil, I'll pass back to you. Thank you. So, Baron asks about integration. So how long will it take you to integrate the acquisitions that we've made, and when do we expect to complete development of an end to end platform?

42:04 Well, I think there's, a significant advantage we have in that we work with all of these businesses before we bought them. So competent adviser, Voucher, Owen James, you know, fantastic thought leadership platform. We used to cohost some of their events and provide facilitators. AKG was deeply integrated into de facto as a data source. And so we didn't come from a a completely standing start. We've already got links and linkages that we've built for our customers to to help help some of these things join up. And I think by the end of the year, these businesses will come together and be one business with multiple products.

42:50 So we've got a special dedicated team who are leading this. Some of the people on that team are coming out of the acquired businesses, and they've formed an overall board to bring them together. And some of the people who are doing that are are people who are already with us. So, for example, the FINTEL COO has gone across to the acquired portfolio to lead the integration of the different products. So I think there's already integration there. By the end of the year, we'll have a single offering, multiproduct offering that, will be will be there. Super. So I really thank you for your engagement, for the questions, and I hope if you've if you if you know us already, I hope it was a good update. If you've not seen us before, I hope we've piqued your interest, and you'll learn some more about what we're doing in the market. It's been a real pleasure to spend some time, and thanks again to Investor Meet for, you know, giving us a chance to showcase what we're doing.

43:55 Neil, David, thanks for updating investors today. Now please ask investors not to close this session and should now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This may only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of FINTEL PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.