REG - IntegraFin Holdings - 3rd Quarter Results

Integrafin HoldingsAnnouncement

18/07/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230718:nRSR2819Ga&default-theme=true

RNS Number : 2819G  IntegraFin Holdings plc  18 July 2023

LEI Number: 213800CYIZKXK9PQYE87

 

 

18 July 2023

 

 

IHP Group quarterly update - Q3 of financial year 2023

 

 

Group headlines:

 

·      Robust flows to the Transact platform during Q3 FY23, with net
inflows of over £0.6bn, and gross inflows of £1.5bn, underscoring the
resilience of the Group's platform business model and strong intermediary
relationships.

 

·    Record number of Transact platform clients of over 229k at the end of
Q3 FY23 (Q3 FY22: 222k), a 3% increase over the year.

 

·      The average daily funds under direction (FUD) for Q3 of financial
year 2023 was £54.3bn (Q3 FY22: £51.9bn).

 

·      Our guidance for financial years ending 30 September 2023 and 30
September 2024 remains unchanged (as issued at our half year reporting in May
2023).

 

·      As announced on 7 July 2023, Euan Marshall will be joining IHP as
Group Chief Financial Officer by early January 2024.

 

 

Transact platform:

 

·      During Q3 of financial year 2023, 1.4k net new clients were added
to the Transact platform.

 

·      At the end of the quarter, the total number of platform clients
was 229k, representing a record level for IHP and the number of registered
advisers was 7.6k.  These figures demonstrate the ongoing strong appeal of
our proposition to clients and advisers.

                                                                                            Financial year   Financial year

                                           Quarter ended                   Quarter ended    to date          to date

 £m                                      30 June 2023                    30 June 2022       30 June 2023     30 June 2022

 Opening FUD                             53,973                          53,500             50,070           52,112
 Inflows                                 1,517                           1,703              4,811            5,770
 Outflows                                -900                            -703               -2,569           -2,089
 Net flows                                             617               1,000              2,242            3,681
 Market movements                        21                              -4,152             2,335            -5,321
 Other movements((1))                    -5                              -48                -41              -172
 Closing FUD                             54,606                          50,300             54,606           50,300
 Average daily FUD for the period (£m)   54,288                          51,889             53,191           52,655
 Number of registered advisers           7,606                           7,469              7,606            7,469
 Number of platform clients              229,659                         221,992            229,659          221,992

 

 

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

 

 

 

Time4Advice:

 

 

·      Total chargeable users of CURO software of 2.7k as at 30 June
2023, an increase of over 8% during the quarter.

 

 

 

Alex Scott, IHP Group Chief Executive Officer, commented:

 

"I am pleased to report a quarter of solid net inflows for the Transact
platform, with gross inflows of £1.5bn and net inflows of over £0.6bn. This
is pleasing considering the tough macro-economic environment and reflects the
strength of our market position and the attractions of our platform. Outflows
remained broadly in line with previous quarters, highlighting the resilience
of our business model. Additionally, our guidance for FY23 and FY24, issued in
May 2023, remains unchanged.

 

As announced on 7 July, we have appointed Euan Marshall as Group Chief
Financial Officer (CFO). Euan will also join the Board of IHP as an Executive
Director by January 2024. I look forward to working with Euan and he will be a
strong addition to the senior management team.

 

The digitalisation programme for the Transact platform is going well and is
being positively received by financial advisers. Client and adviser numbers
continue to grow at a pleasing rate, and we have added 1.4k net new clients to
the platform in Q3 FY23. The client retention rate remains strong at over 96%
on an annualised basis, emphasising the trust that both advisers and clients
have in the Transact platform. Furthermore, the Transact platform share of net
flows to the adviser platform market continues to grow (reaching over 19% for
the first half of the financial year 2023).

 

At Time4Advice the number of chargeable users of the current CURO software is
growing, with 200 new users signed up in the quarter. We are also continuing
to further refine the next version of the CURO software.

 

The outlook for the UK economy is uncertain as we wait to see the full effects
of the Bank of England's interest rate increases. However, we expect net
inflows to the Transact platform to continue to be resilient, and we remain
focused on our aim to be the number one provider of software and services for
clients and UK financial advisers."

 

 

 

 

Transact platform historical information:

 £m                                       Q4       Q1       Q2              Q3               Q4                              Q3

                                           FY21    FY22     FY22     FY22             FY22             Q1 FY23   Q2 FY23     FY23

 Opening FUD                              50,310   52,112   54,539   53,500           50,300           50,070    52,063      53,973
 Inflows                                  1,967    1,976    2,092    1,703            1,505            1,469     1,825       1,517
 Outflows                                 -660     -688     -697     -703             -785             -769                  -900

                                                                                                                 -900

 Net flows                                1,307    1,288    1,395    1,000            720              700       925         617
 Market movements                         553      1,207    -2,376   -4,152           -927             1,319     994         21
 Other movements((1))                     -59      -68      -58      -48              -23              -26       -9          -5
 Closing FUD                              52,112   54,539   53,500   50,300           50,070           52,063    53,973      54,606
                                          51,647   53,514   52,551   51,889           52,217           51,470    53,842      54,288

 Average daily FUD for the period (£m)

 Number of registered advisers            7,161    7,278    7,356    7,469            7,537            7,632        7,563    7,606
 Number of platform clients               208,611  213,178  218,787  221,992          224,705          226,996   228,232     229,659

 

 

 

 

Notes:

(1)Includes fees, taxes and investment income.

 

 

 

 

 

Enquiries:

 

 Investors
 Luke Carrivick, IHP Head of Investor Relations      +44 020 7608 5463

 

 Media
 Lansons: Tony Langham            +44 (0)7979692287

 Lansons: Maddy Morgan-Williams   +44 (0)7947364578

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  QRTGPUGPMUPWGQM