Fintel has sold its property valuation business Gateway Surveying Services as part of a wider move to streamline its operations and refocus on higher-margin activities.
The AIM-listed group has agreed to dispose of Gateway Surveying Services (GSS) alongside APS Legal & Associates to Kairos Professional Services in a deal worth up to £1m.
GSS, which provides property valuation services to mainstream UK lenders, generated £9.7m in revenue and £0.8m in EBITDA in the year to December 2025.
The disposal marks a clear shift away from labour-intensive, lower-margin business lines, with Fintel prioritising its software, data and distribution platforms.
OPERATIONAL RISK
As part of the transaction, Fintel will no longer be required to insure around 500,000 historic property valuations, removing a significant long-tail operational risk tied to the surveying business.
The deal will also reduce the group’s overall workforce by around 16%, reflecting the exit from more operationally complex service lines.
The buyer, Kairos Professional Services, is controlled by former Fintel joint CEO Neil Stevens, who previously oversaw both GSS and APS. Existing management teams will remain in place.
LOWER MARGINS
Fintel said Gateway Surveying Services, while profitable, operated on lower margins than the wider group, with the two divested businesses delivering a combined EBITDA margin of around 8%, compared to Fintel’s group margin of 30%.
The move is expected to allow GSS to continue its growth trajectory under new ownership, while freeing Fintel to focus on scalable, recurring revenue streams.
Matt Timmins, Chief Executive Officer of Fintel, says: “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.”
