IntegraFin boosts annual revenues despite market volatility
By Abigail Townsend
Date: Wednesday 14 Dec 2022
(Sharecast News) - IntegraFin Holdings reported a jump in annual revenues on Wednesday, despite "significant" market volatility during the year.
The owner of Transact, an investment platform used by UK financial advisors and their clients, said group revenues in the year to 30 September had risen 8% to £133.6m, while underlying group profits nudged 1% higher to £65.8m.
Pre-tax profits fell 15% to £54.3m, however, because of one-off costs including a VAT payment and interest on software services.
Net new business inflows fell 11% to £4.4bn, while closing funds under direction (FUD) were down 4% at £501.bn. Average daily FUD for the year increased 11% to £52.5bn.
Alex Scott, chief executive, said: "During a period of significant volatility in asset markets, we have grown group revenue and recorded substantial net inflows on the Transact platform."
Looking to the current year, he added: "I believe that the outlook remains positive for the group, with demand for independent financial advice expected to remain strong.
"We are mindful of the difficult economic environment. However, we expect the performance of the group to remain resilience during the 2023 financial year, with new clients and advisers joining, continued robust flows onto the Transact platform, and the commencement of the rollout of the next generation CURO software."
Stuart Duncan, analyst at Peel Hunt, said: "While IntegraFin has proven resilient, expectations for 2023 reflect both the lower starting point of FUD and the increased cost base previously highlighted.
"There are inflationary pressures just now, but IntegraFin remains well placed to invest in the business to ensure the platform retains its competitive position."
Peel Hunt has a 'buy' rating on the FTSE 250 stock and a price target of 385p.
As at 0830 GMT, shares in IntegraFin were off 1% at 303.8p.
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