IntegraFin reports record levels of funds under direction

Investment platform operator IntegraFin reported a strong financial and operational first half on Wednesday, with a record high level of funds under direction (FUD) on its Transact platform of £61bn on 31 March.

The FTSE 250 company said that represented a 13% increase from the £54bn it recorded at the same point last year.

Net inflows during the half-year totalled £1.1bn, representing 4% of opening funds under direction on an annualised basis, although that was down from £1.6bn in the same period in 2023.

Group revenue for the period rose 6% to £70.4m, driven by higher average daily FUD, which stood at £57bn, compared to £52.6bn a year earlier.

IFRS profit before tax increased 16% to £32.4m, while underlying group profit before tax, adjusted for non-underlying expenses, was up 14% to £33.5m.

Earnings per share also saw growth, with IFRS group earnings per share rising 12% to 7.4p and underlying group earnings per share increasing 8% to 7.7p.

In line with the company's dividend policy, the board declared an interim dividend of 3.2p per share, payable on 5 July to shareholders on the register as of 7 June, with an ex-dividend date of 6 June.

Operationally, IntegraFin said the Transact platform continued to show solid performance with growth across key metrics.

The adviser base expanded 4% to around 7,900 advisers, and the number of clients using the platform grew 1% to around 232,000.

It also reported continued improvements from its digitisation programme, enhancing digital interfaces and streamlining processes and leading to operational efficiencies and an improved experience for clients and advisers.

Additionally, its Time4Advice subsidiary showed steady growth, with total chargeable users increasing 20% to over 3,000, compared to 2,500 in the same period last year.

IntegraFin’s financial guidance for the full year ending 30 September remained unchanged, with the group performing in line with expectations.

“I am pleased to report that the group has delivered resilient performance for the first half of the year with revenue up 6% and underlying profit before tax up 14%,” said group chief executive Alexander Scott.

“Our people continue to diligently deliver a first-class service to our clients and their advisers through the group's leading technology proposition and deep, trusted relationships.

“Transact continues to grow its client and adviser numbers, as well as deliver resilient net inflows over the period.”

Scott said the record levels of client and adviser numbers also presented the company with a “solid pipeline” for future flows.

“We remain dedicated to ensuring positive consumer outcomes, underpinned by our platform digitalisation programme which enhances service and efficiency.

“Above all, we are focussed on our goal of being the number one provider of investment platform software and services for clients and UK financial advisers.”

At 0815 BST, shares in IntegraFin Holdings were up 4.81% at 327p.

Reporting by Josh White for Sharecast.com.