IntegraFin Holdings plc (LON:IHP) have today provided half year results for the six months ended 31 March 2023.
Headlines
· Robust Transact platform net inflows of £1.6bn (HY22: £2.7bn), representing over 6% of opening funds under direction (‘FUD’) (annualised).
· Record Transact platform client numbers of 228k (HY22: 219k), a 4% increase from prior year.
· Total Group revenue of £66.5m (HY22: £67.0m), during a period with a 1% fall in Transact platform average daily FUD due to adverse market movements (HY23: £52.6bn; HY22: £53bn).
· Resilient underlying Group profit before tax of £29.4m (HY22: £32.4m), and IFRS profit before tax of £27.9m (HY22: £31.7m), as we continue investment in the business for future growth.
· The underlying result for FY23 is after adjusting for non-underlying expenses of £1.5m (T4A post combination remuneration). FY22 underlying Group PBT now includes £0.8m of VAT costs which were paid in September 2022, but were underlying costs for the HY22 period.
· Underlying Group earnings per share of 7.1p (HY22: 8.0p). IFRS Group earnings per share of 6.6p (HY22: 7.7p).
· The digitalisation programme for the Transact platform is well underway and is being positively received. The recruitment of IT and software professionals is progressing well, though at a slower pace than originally planned, whilst the market for IT professionals remains competitive. Recruitment will continue into FY24, but with no increase in the planned total additional headcount.
· The detailed cost guidance, which we disclosed in December 2022, for financial years ending 30 September 2023 and 30 September 2024 remains unchanged.
· Declared first interim dividend of 3.2 pence per share (HY22: 3.2pps).
IHP Group – Financial highlights
| Six months to 31 March 2023 | Six monthsto 31 March 2022 | |
| Total Group revenue | £66.5m | £67.0m |
| Underlying profit before tax | £29.4m | £32.4m |
| IFRS profit before tax | £27.9m | £31.7m |
| Underlying earnings per share | 7.1p | 8.0p |
| IFRS earning per share | 6.6p | 7.7p |
| First interim dividend per share | 3.2p | 3.2p |
Transact platform:
| Six months to 31 March 2023 | Six monthsto 31 March 2022 | |
| Net new business inflows | £1.6bn | £2.7bn |
| Closing funds under direction (‘FUD’) | £54.0bn | £53.5bn |
| Average daily FUD | £52.6bn | £53.0bn |
| Transact platform clients (as at 31 March) | 228,232 | 218,787 |
| Transact platform registered advisers (as at 31 March) | 7,563 | 7,356 |
Time4Advice:
| Six months to 31 March 2023 | Six monthsto 31 March 2022 | |
| Time4Advice revenue | £2.4m | £1.7m |
| Total number of CURO software users (as at 31 March) | 2.5k | 1.8k |
Alex Scott, IntegraFin Holdings Chief Executive Officer, commented:
“I am pleased to report another solid performance, despite the six months to 31 March 2023 presenting a challenging backdrop for UK consumers and businesses, with persistently high inflation, macroeconomic uncertainty and volatile asset markets. The combination of the strength of the UK advisers we work with and the services provided by the Transact investment platform and the CURO adviser back office solution, ensured that we delivered a resilient performance.
Net inflows to the Transact platform were over 6% of opening period FUD and we now serve a record 228k clients, and 7.6k registered advisers.
During the period, market performance resulted in investment platform average daily FUD falling by 1% year on year. The main component of Group revenue is earned on average FUD, so this resulted in steady Group revenue. Furthermore, during a period of continuing investment in the business for future growth, we delivered a resilient underlying profit before tax for the Group of £29.4 million.
We continue to implement our Transact platform digitalisation programme to deliver comprehensive online functionality for advisers and clients, as well as straight through processing for core internal administration activities. This means that we will be able to make our business more scalable, and our customer services people will be able to spend more of their time on the most important value adding activities for clients and advisers.
Time4Advice continues to progress well, with registered users of the CURO software increasing by over 10% since year end.
In a period of ongoing economic and market volatility, clients rely more than ever on their advisers. Clients receive high quality, personal, financial planning and support delivered by UK authorised advisers.
As we’ve always done, we’ll continue to support UK financial advisers and clients by providing our combination of in house technology and well trained people delivering high quality service. This creates a holistic financial planning solution for clients, which is both easier to deliver and more scalable for UK financial advisers.
Overall, we remain focused on our aim to be the number one provider of software and services for clients and UK financial advisers.”
