IntegraFin Holdings plc 2nd Quarter Results (4876W)

TIDMIHP

RNS Number : 4876W

IntegraFin Holdings plc

18 April 2023

LEI Number: 213800CYIZKXK9PQYE87

18 April 2023

IHP Group quarterly update - Q2 of financial year 2023

Group headlines:

-- Ongoing strong flows in Q2 FY23, with net inflows to the Transact platform of GBP0.9bn, and gross inflows of GBP1.8bn.

   --    Record number of Transact platform clients of 228k at the end of Q2 FY23 (Q2 FY22: 218k). 

-- The average daily funds under direction (FUD) for Q2 of financial year 2023 was GBP53.8bn (Q2 FY22: GBP52.5bn).

-- Total Group revenue is expected to be GBP66m for the first half of financial year 2023 (H1 FY22: GBP67m).

-- Cost guidance for financial years ending 30 September 2023 and 30 September 2024 remains unchanged (as issued at our year end reporting in December 2022).

Transact platform:

-- Total net inflows to the Transact platform for the first half of financial year 2023 of GBP1.6bn.

-- During Q2 of financial year 2023 c.5.5k new clients were added to the Transact platform, and c.200 new advisers were registered.

-- Additionally, during Q2, a review was undertaken of portfolios in accordance with regulatory requirements, for clients who had only small residual balances. This ongoing exercise will help improve operational efficiency. In this quarter it resulted in a reduction in client numbers of c.4.2k and also registered advisers of c.270.

-- At the end of the quarter the total number of platform clients was 228k, and registered advisers was 7.6k.

 
 
 
                                            Quarter     Quarter ended     H1 ended     H1 ended 
   GBPm                                       ended     31 March 2022     31 March     31 March 
                                           31 March                           2023         2022 
                                               2023 
-------------------------------                                                     ----------- 
 Opening FUD                                 52,063            54,539       50,070       52,112 
 Inflows                                      1,825             2,092        3,294        4,068 
 Outflows                                      -900              -697       -1,669       -1,385 
 Net flows                                      925             1,395        1,625        2,683 
-------------------------------  ------------------  ----------------  -----------  ----------- 
 Market movements                               994            -2,376        2,313       -1,169 
 Other movements(1)                              -9               -58          -35         -126 
-------------------------------  ------------------  ----------------  -----------  ----------- 
 Closing FUD                                 53,973            53,500       53,973       53,500 
-------------------------------  ------------------  ----------------  -----------  ----------- 
 Average daily FUD for the 
  period (GBPm)                              53,842            52,551       52,643       53,038 
-------------------------------  ------------------  ----------------  -----------  ----------- 
 Number of registered advisers                7,563             7,356        7,563        7,356 
 Number of platform clients                 228,232           218,787      228,232      218,787 
-------------------------------  ------------------  ----------------  -----------  ----------- 
 

Notes: (1) Includes fees, taxes and investment income.

Time4Advice:

-- Total registered users of CURO software was 2.5k as at 31 March 2023 (10% higher than as at 30 September 2022).

Alex Scott, IHP Group Chief Executive Officer, commented:

"I am pleased to report another quarter of solid net inflows for the Transact platform, with net inflows of GBP0.9bn for the quarter and GBP1.6bn in total for the first half of financial year 2023. For the first half of the year this represents an annualised net flow rate of over 6% of opening period FUD.

The retention of clients and assets on the Transact platform remains very high. This is a result of the combination of high quality, personal, financial planning delivered by UK authorised advisers, and the service that Transact delivers for clients.

During this period of ongoing economic and market volatility, clients rely more than ever on their advisers. The recent UK budget also announced specific measures that will enable more saving into UK pensions. We therefore see the demand for high quality advice only continuing to grow, and we will continue to support UK advisers and capitalise on this market opportunity.

We continue to implement our 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 our customer services staff will be able to spend more of their time on the most important value adding activities for advisers and clients.

Overall, we remain focused on our aim to be the number one provider of software and services for clients and UK financial advisers.

We look forward to reporting our results for the first half of financial year 2023 on 26 May 2023."

 
                                  Q3        Q4        Q1        Q2            Q3            Q4 
 GBPm                           FY21      FY21      FY22      FY22          FY22          FY22     Q1 FY23     Q2 FY23 
--------------------------  --------  --------  --------  --------  ------------  ------------  ----------  ---------- 
 Opening FUD                  46,929    50,310    52,112    54,539        53,500        50,300      50,070      52,063 
 Inflows                       1,994     1,967     1,976     2,092         1,703         1,505       1,469       1,825 
 
 Outflows                       -657      -660      -688      -697          -703          -785        -769        -900 
 Net flows                     1,337     1,307     1,288     1,395         1,000           720         700         925 
 Market movements              2,112       553     1,207    -2,376        -4,152          -927       1,319         994 
 Other movements (1)             -68       -59       -68       -58           -48           -23         -26          -9 
-------------------------- 
 Closing FUD                  50,310    52,112    54,539    53,500        50,300        50,070      52,063      53,973 
--------------------------  --------  --------  --------  --------  ------------  ------------  ----------  ---------- 
 
   Average daily FUD for 
   the period (GBPm)          48,677    51,647    53,514    52,551        51,889        52,217      51,470      53,842 
--------------------------  --------  --------  --------  --------  ------------  ------------  ----------  ---------- 
 Number of registered 
  advisers                     7,056     7,161     7,278     7,356         7,469         7,537       7,632     7,563 
 Number of platform 
  clients                    205,532   208,611   213,178   218,787       221,992       224,705     226,996   228,232 
--------------------------  --------  --------  --------  --------  ------------  ------------  ----------  ---------- 
 

Transact platform historical information:

Notes:

(1)Includes fees, taxes and investment income.

Enquiries:

 
 Investors 
 Luke Carrivick, IHP Head of Investor 
  Relations                                        [phone] 
 
 
 
 Media 
 Lansons: Tony Langham               [phone] 
  Lansons: Maddy Morgan-Williams     [phone] 
 
 
 
 

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April 18, 2023 02:00 ET (06:00 GMT)