REG - IntegraFin Holdings - Half-year Report
Wed 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250521:nRSU4741Ja&default-theme=true
RNS Number : 4741J IntegraFin Holdings plc 21 May 2025
LEI Number: 213800CYIZKXK9PQYE87
21 May 2025
IntegraFin Holdings plc
Half-year results for the six months ended 31 March 2025
IntegraFin Holdings plc ("IHP", or "the Group"), operator of Transact, the
UK's premium investment platform for clients and UK financial advisers, is
pleased to report its half-year results for the period ended 31 March 2025.
The Group has delivered strong gross and net flows during the half-year
period, with net flows at an annualised 7% of opening FUD, driven by the
strong service proposition and functionality of the Transact platform. Net
flow performance for H1 represents a 91% increase over the equivalent period
in FY24, with sustained strong flow performance seen since 31 March 2025 ahead
of, and following, the tax year-end.
Underlying diluted EPS for HY25 was 8.8p, 14% higher than HY24 (7.7p), whilst
reported diluted EPS for HY25 was lower at 6.3p (HY24: 7.4p). The difference
between reported and underlying EPS was primarily due to the non-cash impact
of a write down of the goodwill and intangibles on acquisition of T4A
(£7.5m). Guidance for full year FY25, as well as for FY26 onwards, remains
unchanged.
Financial and operational highlights
• Closing funds under direction ('FUD') of £65.9bn on the Transact platform, up
8% from HY24 (£61.0bn), with strong net inflows of £2.1bn (HY24: £1.1bn).
• Group revenue of £77.2m, 10% higher than HY24 (£70.4m), driven by higher
average daily FUD.
• Reported profit before tax fell 8% to £29.8m (HY24: £32.4m). Underlying
profit before tax grew 13% to £37.9m (HY24: £33.5m).
• Reported diluted earnings per share fell 15% to 6.3p (HY24: 7.4p). Underlying
diluted earnings per share grew 14% to 8.8p (HY24: 7.7p).
• Client base rose 4% to a new high of 241.1k as we continued to deliver
platform digitalisation benefits for clients and advice firms.
• In accordance with the Company's dividend policy, the Board has declared a
first interim dividend. In respect of the six months to 31 March 2025, an
interim dividend of 3.3 pence per share (HY24: 3.2pps) will be payable on 4
July 2025 to ordinary shareholders on the register on 6 June 2025. The
ex-dividend date will be 5 June 2025.
Outlook and guidance
• Global equity market volatility in April 2025 adversely impacted Transact FUD
resulting in average daily FUD for April of £64.4bn. FUD as at 30 April was
£65.8bn; alongside the ongoing recovery in global equity indices, FUD has
continued to improve as May has progressed.
• Maintaining good momentum in our net inflows dynamic, with minimal impact
during April 2025 from market turbulence.
• Cost guidance issued at the FY24 full year results for the year ending 30
September 2025 remains unchanged.
• Cost guidance for FY26 and beyond, that administrative costs will rise by low-
to mid-single digit percentages, also remains unchanged.
• The previously guided one-off office move costs of c.£2m will be entirely
recognised in the second half of FY25 as a non-underlying cost.
Financial information
IHP Group Half-year to 31 March 2025 Half-year to 31 March 2024 % Movement
Total Group revenue £77.2m £70.4m 10%
Reported profit before tax £29.8m £32.4m -8%
Underlying profit before tax £37.9m £33.5m 13%
Reported diluted earnings per share 6.3p 7.4p -15%
Underlying diluted earnings per share 8.8p 7.7p 14%
First interim dividend per share 3.3p 3.2p 3%
Transact platform Half-year to 31 March 2025 Half-year to 31 March 2024 % Movement
Net inflows £2.1bn £1.1bn 91%
Closing FUD £65.9bn £61.0bn 8%
Average daily FUD £66.3bn £57.0bn 16%
Transact platform clients 241,197 231,581 4%
Commenting on the half year results, Alexander Scott, IHP Group Chief
Executive Officer said:
"It has been a strong start to the year with substantial growth across our key
financial metrics, increasing revenue by 10% and underlying profit before tax
by 13%. Our diligent approach to client service and regular enhancements to
the Transact platform's proprietary technology, remain key to our competitive
position.
Continuing our momentum from the previous year, H1 FY25 has seen record levels
of gross inflows and strong net flow performance. We are particularly pleased
to have exceeded our net flow performance by 91% year on year.
We continue to focus on developing the Transact platform to deliver meaningful
efficiencies for advice firms, helping to drive client growth and net flows.
The roll-out of the next generation CURO on Power Platform back-office
software is progressing well. Developing an integrated digital ecosystem for
financial advice firms is a key component of our strategy for attracting flows
to Transact.
Despite the global uncertainty impacting equity markets in recent months, we
are confident that our strong platform proposition and the secular trends
affecting the UK savings and investment market remain very favourable. This is
illustrated through our strong new business flows in Q2 FY25.
In March, we also marked the 25(th) anniversary of the first assets being
placed on the Transact platform. In that time, our client-centric approach
and focus on innovation have driven us to become a leading provider and
operator in the sector. This milestone is an opportunity to reflect and to
continue to focus on our strategy: to deliver leading financial adviser
software, personal service and value for money."
Enquiries
Investors
Luke Carrivick, Investor Relations Director +44 020 7608 5463
Media
FGS Global: Mike Turner +44 7775992415
FGS Global: Chris Sibbald +44 7855955531
2025 Half year results presentation
IHP will be hosting a virtual analyst audio presentation at 09:30am on 21 May
2025. This will be available at https://brrmedia.news/IHP_HY_25
(https://brrmedia.news/IHP_HY_25) .
A recording of the presentation will be available for playback after the event
at https://www.integrafin.co.uk/ (https://www.integrafin.co.uk/) . Slides
accompanying the analyst presentation will also be available this morning at
https://www.integrafin.co.uk/annual-reports/
(https://www.integrafin.co.uk/annual-reports/) .
Cautionary Statement
These Interim Results have been prepared in accordance with the requirements
of English Company Law and the liabilities of the Directors in connection with
these Interim Results shall be subject to the limitations and restrictions
provided by such law.
These Interim Results are prepared for and addressed only to the Company's
shareholders as a whole and to no other person. The Company, its Directors,
employees, agents or advisers do not accept or assume responsibility to any
other person to whom these Interim Results are shown or into whose hands it
may come, and any such responsibility or liability is expressly disclaimed.
These Interim Results contain forward looking statements, which are
unavoidably subject to risk and uncertainty because they relate to events and
depend upon circumstances that will occur in the future. It is believed that
the expectations set out in these forward-looking statements are reasonable,
but they may be affected by a wide range of variables which could cause future
outcomes to differ from those foreseen. All statements in these Interim
Results are based upon information known to the Company at the date of this
report. Except as required by law, the Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
Financial review
Headlines
During HY25 the Group's platform business continued to demonstrate strong
fundamental performance in attracting and retaining advised business. The
primary measure of this success was FUD growth, which was up 8% to £65.9
billion (HY24: £61.0 billion)* as a result of record gross inflows the
stabilisation of outflows, leading to strong net inflows. The Group also
continued to grow its market penetration with platform clients up 4% at
241,197 (HY24: 231,581)*.
As a result of the FUD growth, Group revenue increased strongly, up 10% to
£77.2 million (HY24: £70.4 million).
The Group's liquidity profile remains strong, and this, combined with ongoing
interest income optimisation, has led to net interest income increasing by 10%
to £5.6 million (HY24: £5.1 million), despite a lower average Bank of
England base rate in comparison to the same period in the prior year.
The growth in both Group revenue and interest income more than offset the 9%
increase in underlying operating expenses to £44.7 million (HY24: £41.0
million), which was the result of ongoing investment in the business to ensure
that we continue to deliver market-leading service as the Group continues to
grow.
Statutory profit before tax (PBT) decreased 8% to £29.8 million (HY24: £32.4
million), principally due to an impairment of goodwill and other intangible
assets relating to T4A of £7.5 million during the period. Underlying profit
before tax, however, rose by 13% to £37.9 million (HY24: £33.5 million)*.
Diluted earnings per share (EPS) was 6.3p (HY24: 7.4p). After removing all
non-underlying expenses in HY25, underlying diluted EPS was 8.8p* (HY24:
7.7p).
* Alternative performance measures (APMs) are indicated with an asterisk.
APMs are financial measures which are not defined by IFRS. They are used in
order to provide better insight into the performance of the Group. Further
details are provided in the glossary.
Operational performance
Platform
HY25 HY24 YE 2024 Change HY
£bn £bn £bn
%
Opening FUD 64.1 55.0 55.0 +17%
Inflows 5.1 3.9 8.1 +31%
Outflows (3.0) (2.8) (5.6) +7%
Net flows 2.1 1.1 2.5 +91%
Market movements (0.3) 4.9 6.6 -106%
Closing FUD 65.9 61.0 64.1 +8%
Average daily FUD for the period 66.3 57.0 59.6 +16%
Platform clients 241,197 231,581 234,998 +4%
FUD closed the period up 8% on HY24 at £65.9 billion.
HY25 has seen record levels of gross inflows and strong net flow performance.
Advisers have continued to be attracted to the Group's Transact platform as a
result of our proposition, including market-leading service and continued
functionality enhancements, resulting in gross inflows of £5.1 billion (HY24:
£3.9 billion), a record for the Group.
Outflows have marginally increased to £3.0 billion (HY24: £2.8 billion).
Given the increases in FUD since last year, this represents a significant
reduction in the annualised outflow rate as a percentage of FUD, reducing from
11% in HY24 to 9% in HY25.
Net flow performance has improved by 91% year on year, to £2.1 billion (HY24:
£1.1 billion), or 3.3% (HY24: 2.0%) of opening FUD, which is 6.6% (HY24:
4.0%) on an annualised basis.
Back-office technology
At the end of HY25 the number of CURO licence users was 3,094 (HY24: 3,026),
an increase of 2%.
Group financial performance
HY25 HY25 HY24 HY24 YE 2024 Change HY Group Change HY Platform
Group *Platform Group *Platform Group
£m £m £m £m £m % %
Revenue 77.2 74.7 70.4 68.0 144.9 +10% +10%
Cost of sales (1.6) (1.2) (1.6) (0.9) (3.0) 0% +33%
Gross profit 75.6 73.5 68.8 67.1 141.9 +10% +10%
Operating expenses (44.7) (42.1) (41.0) (37.4) (83.3) +9% +13%
Credit loss allowance on financial assets - - - - 0.1 -% -%
Non-underlying expenses (8.1) - (1.1) - (1.7) +636% -%
Operating profit 22.8 31.4 26.7 29.7 57.0 -15% +6%
Net interest income 5.5 4.8 5.1 4.4 10.5 +8% +9%
Net gain attributable to policyholder returns 1.5 1.5 0.6 0.6 1.4 +150% +150%
Profit before tax 29.8 37.7 32.4 34.7 68.9 -8% +9%
Tax on ordinary activities (8.6) (6.3) (8.0) (7.5) (16.8) +8% -16%
Profit after tax 21.2 31.4 24.4 27.2 52.1 -13% +15%
Operating margin 30% 42% 38% 44% 40% -21% -5%
Earnings per share - basic 6.4p 7.4p -14%
Earnings per share - diluted 6.3p 7.4p -15%
* The "Platform" columns represent the activities conducted on Transact and
excludes the activities of T4A, the Group's adviser back-office technology
provider.
The T4A activities are included in the Group column. Platform is equivalent to
the investment administration services and insurance and life assurance
business segments in note 3.
Revenue
There are two streams of Group revenue: investment platform revenue and T4A
revenue.
HY25 HY24 YE 2024 Change HY
Platform revenue £m £m £m %
Recurring annual charges 67.3 61.0 126.1 +10%
Recurring wrapper charges 6.7 6.3 12.8 +6%
Other income 0.7 0.7 1.1 -%
Total platform revenue 74.7 68.0 140.0 +10%
T4A revenue 2.5 2.4 4.9 +4%
Total revenue 77.2 70.4 144.9 +10%
Platform revenue
HY25 investment platform revenue increased by £6.7 million to £74.7 million
(HY24: £68.0 million). Investment platform revenue comprises three elements,
99% (HY24: 99%) of which is from a recurring source.
Annual charge income (an annual, ad valorem tiered fee on FUD) and wrapper fee
income (quarterly fixed wrapper fees for certain available tax wrapper types)
are recurring. Other income is composed of buy commission and dealing charges.
Average daily FUD for the year, arising from the performance of the assets in
client portfolios, increased by 16% in HY25 to £66.3 billion. Annual charge
income increased 10% to £67.3 million (HY24: £61.0 million). The lower
increase in annual charge income in comparison to average FUD resulted from a
reduction in the blended rate annual charge payable by clients. This naturally
occurs as a result of a greater proportion of individual client FUD benefits
from progressively lower fees as portfolios increase in value.
Recurring wrapper fee income increased by 6% to £6.7 million (HY24: £6.3
million), reflecting the increase in the number of open tax wrappers for both
existing and new clients.
Other income remained consistent at £0.7 million (HY24: £0.7 million).
Within other income in HY24 are £0.2 million of buy commissions, which we
eliminated from 1 March 2024. This is an illustration of our responsible
pricing strategy, as we seek to simplify our fee structure. HY25 other income
consists mainly of dealing charges.
Back-office technology revenue
HY25 CURO licence revenue was £2.5 million (HY24: £2.4 million), an increase
of 4%. This was driven by an increase in recurring revenue from additional
CURO user licences.
Administrative expenses
Administrative expenses increased by £10.7 million (25%) to £52.8 million
and increased by £3.7 million (9%) on an underlying basis to £44.7 million.
HY25 HY24 YE 2024 Change HY %
£m £m £m
Employee costs 31.8 28.9 58.5 +10%
Occupancy 1.3 2.4 3.1 -46%
Regulatory and professional fees* 3.4 3.4 10.6 -%
Other costs* 6.7 5.7 8.9 +18%
Depreciation and amortisation 1.5 0.6 2.2 +150%
Underlying administrative expenses 44.7 41.0 83.3 +9%
Non-underlying expenses 8.1 1.1 1.7 +636%
Administrative expenses 52.8 42.1 85.0 +25%
*Licences and permits, along with professional indemnity insurance costs, have
been reclassified from regulatory and professional fees to other costs in HY24
to align with the classification used in YE24 and HY25, totalling £1.6
million.
HY25 HY24 YE 2024 Change HY %
No. No. No.
Average headcount 672 663 666 1%
Period end headcount 675 672 666 -%
Employee costs
Employee costs increased by 10% due to a combination of increased headcount,
which grew by 1% from an average of 663 in HY24 to an average of 672 in HY25,
and providing competitive remuneration to our employees.
Occupancy costs/depreciation and amortisation
Occupancy costs decreased by £1.1 million, and depreciation and amortisation
increased by £0.9 million. The decrease in occupancy costs is due to the head
office lease ending in June 2023 and renewing in March 2024. As there was no
lease commitment in the intervening period, this meant that, as per IFRS 16,
the leases accounting standard, depreciation of the right-of-use asset and the
interest on the lease liability were replaced by rent expense for the first
six months of FY24.
Regulatory and professional fees
Regulatory and professional fees have remained consistent.
Other costs
Other costs increased by £1.0 million in HY25 due to the reclassification of
client compensation provisions of £1.1 million (HY24: £0.3 million), which
were recognised in this category during the period rather than within Cost of
Sales as in HY24.
Non-underlying expenses
Impairment of goodwill and other intangible assets
£7.5 million of non-underlying expenses are due to an impairment to the
goodwill and intangible assets held in relation to the T4A acquisition. T4A's
projected financial performance in the short and medium term has deteriorated
and as a result the latest cash flow projections indicate that the carrying
value of the T4A cash generating unit exceeds its recoverable amount. Despite
the downturn in projected financial performance, T4A's CURO proposition
remains of strategic importance to the Group, and supports the Group's
strategy of providing better solutions to clients to make financial planning
easier.
The remaining contribution to non-underlying expenses relate to the deferred
consideration payable as part of the acquisition of T4A, and any other one-off
items considered to not be part of the core underlying business performance.
The T4A post-combination remuneration costs fell to £0.6 million (HY24: £1.0
million); the final deferred consideration payment was made in January 2025,
with no further costs for this recorded from that point onwards.
Interest income
Interest income rose 10% to £5.6 million (HY24: £5.1 million). The increase
was due to higher average corporate bank balances and ongoing optimisation of
corporate cash, despite a lower average Bank of England base rate in
comparison to the prior period.
Net (loss)/gain attributable to policyholder returns
Tax relief due to shareholders was £1.1 million in HY25 (HY24: £0.6 million)
and relates to life insurance company tax requirements and thus is subject to
valuations at year end, which are inherently dependent on market valuations at
that date.
Underlying profit before tax and earnings per share
HY25 HY24 YE 2024 Change HY %
Group Group Group
£m £m £m
IFRS Profit before tax 29.8 32.4 68.9 -8%
Non-underlying expenses 8.1 1.1 1.6 +636%
Underlying profit before tax 37.9 33.5 70.5 +13%
Underlying earnings per share - basic 8.9p 7.7p 15.8p +16%
Underlying earnings per share - diluted 8.8p 7.7p 15.7p +14%
Tax
The Group has operations in three tax jurisdictions: the UK, Australia and the
Isle of Man. This results in profits being subject to tax at three different
rates. However, 96% of the Group's income is earned in the UK.
Shareholder tax on ordinary activities for the period increased by £0.6
million (8%), to £8.6 million (HY24: £8.0 million) due to the increase in
taxable profit.
The Group's effective rate of tax over the period was 29% (HY24: 25%).
The Group tax strategy can be found at: https://www.integrafin.co.uk/
legal-and-regulatory-information/.
Dividends
During the six month period to 31 March 2025, IHP paid a second interim
dividend of £23.9 million to shareholders in respect of financial year 2024
(second interim dividend in respect of financial year 2023: 23.2 million).
This was in addition to the first interim dividend of £10.6 million (first
interim dividend in respect of financial year 2023: £10.6 million), which was
paid in July 2024.
In respect of the six months to 31 March 2025, the Board has declared a first
interim dividend of 3.3 pence per ordinary share, or £10.9 million (2024: 3.2
pence per ordinary share, £10.6 million). This will be payable on 4 July 2025
to ordinary shareholders on the register on 6 June 2025. The ex-dividend date
will be 5 June 2025.
Consolidated Statement of Financial Position
March September 2024 Change
2025 £m %
£m
Non-current assets 23.5 32.6 -28%
Current assets 281.8 270.0 +4%
Current liabilities (62.5) (47.5) +32%
Non-current liabilities (37.7) (46.8) -19%
205.1 208.3 -2%
Policyholder assets and liabilities
Cash held for the benefit of policyholders 1,790.3 1,622.8 +10%
Investments held for the benefit of policyholders 27,966.7 27,237.8 +3%
Liabilities for linked investment contracts (29,757.0) (28,860.6) +3%
- - -
Net Assets 205.1 208.3 -2%
Share capital 3.3 3.3 0%
Share based payment reserve 4.1 4.1 0%
Employee Benefit Trust reserve (3.7) (3.3) +12%
Other reserves 5.4 5.6 -4%
Profit or loss account 196.0 198.6 -1%
Total equity 205.1 208.3 -2%
Net assets decreased 2%, or £3.2 million, in the period to £205.1 million,
and the material movements on the Consolidated Statement of Financial Position
were as follows:
Non-current assets
Non-current assets have decreased due to the impairment to goodwill and other
intangibles held in relation to the T4A acquisition, as noted in
non-underlying expenses.
Current assets
Current assets increased by 4%, or £11.8 million, during the period to
£281.8 million. This was as a result of the cash flows generated from
operating activities, some of which have subsequently been invested in gilts.
Current liabilities
Current liabilities increased by 32%, or £15.0 million, during the period to
£62.5 million. This was largely due to an increase in the current provision
relating to ILUK policyholder reserves.
Non-current liabilities
Non-current liabilities decreased by 19%, or £9.1 million, during the period
to £37.7 million. This was largely due to a fall in the deferred tax
liability in relation to ILUK policyholder reserves.
Policyholder assets and liabilities
ILUK and ILInt write only unit-linked insurance policies. They match the
assets and liabilities of their linked policies such that, in their own
individual statements of financial position, these items always net off
exactly. These line items are required to be shown under IFRS in the Interim
Condensed Consolidated Statement of Comprehensive Income, the Interim
Condensed Consolidated Statement of Financial Position and the Interim
Condensed Consolidated Statement of Cash Flows but have zero net effect.
Cash and investments held for the benefit of ILUK and ILInt policyholders have
risen to £29,757.0 billion (FY24: £28,860.6 billion). This increase of 3% is
entirely consistent with the rise in total FUD on the investment platform.
Capital
IFAL is subject to Investment Firms Prudential Regime (IFPR) regulatory
capital and liquidity rules. These prudential rules require the calculation of
capital requirements reflecting "K factor" requirements that cover potential
harms arising from business activities. The K factors are calculated using
formulae for assets and cash under administration and client orders handled.
The regulatory capital requirements and resources in ILUK and ILInt are
calculated by reference to economic capital-based regimes, which are Solvency
UK for ILUK and the Isle of Man Risk-Based Capital Regime for ILInt.
Each of the regulated entities maintains a healthy surplus of regulatory
capital over their requirement, as shown in the below tables:
Regulatory capital as at 31 March 2025
Regulatory capital requirements Regulatory capital resources Regulatory cover
£m £m %
IFAL 65.9 87.0 132%
ILUK 226.8 323.2 143%
ILInt 28.6 52.3 183%
Regulatory capital as at 30 September 2024
Regulatory capital requirements Regulatory capital resources Regulatory cover
£m £m %
IFAL 60.4 74.8 124%
ILUK 229.5 313.1 136%
ILInt 26.4 49.0 186%
Liquidity
The Group holds liquid assets in the form of cash and cash equivalents and UK
Government securities ('UK gilts'), the majority of which are available with
immediate effect.
The main uses of liquid assets include:
§ holdings for regulatory and operational purposes, including risk appetite;
and
§ coverage of policyholder returns in the life insurance businesses.
Surplus cash and gilts have increased by £9.0 million during the financial
year.
March September 2024
2025 £m
£m
Total Group consolidated cash and UK gilts* 245.8 242.1
Less: Group cash and UK gilts held for regulatory and operational purposes (125.1) (118.3)
Less: foreseeable dividend (10.9) (23.9)
Less: coverage of policyholder returns in the life insurance companies (68.7) (67.8)
Surplus cash and UK gilts 41.1 32.1
*Differs from the balances per the Group's Interim Condensed Statement of
Financial Position due to the exclusion of cash held by ILInt for bonds
awaiting approval of £11.8 million (September 2024: £6.5 million). These
balances can be found in note 16 to the condensed financial statements.
Euan Marshall
Chief Financial Officer
20 May 2025
Directors' responsibilities statement
The Directors are responsible for preparing the condensed consolidated
financial statements in accordance with applicable law and regulations. A list
of current directors is maintained on the Group's website:
https://www.integrafin.co.uk.
The Directors confirm that, to the best of their knowledge, the condensed
consolidated financial statements have been prepared in accordance with UK
adopted International Accounting Standard 34, and give a true and fair view of
the assets, liabilities, financial position and profit or loss of the issuer,
or the undertakings included in the consolidation as a whole as required by
DTR 4.2.4 R.
The Directors further confirm that the interim management report includes a
fair review of the information required by DTR 4.2.7R and DTR 4.2.8R, namely:
· an indication of important events that have occurred during the
first six months of the financial year and their impact on the condensed set
of consolidated financial statements, and a description of the principal risks
and uncertainties for the remaining six months of the financial year; and
· material related-party transactions in the first six months and any
material changes in the related party transactions described in the last
Annual Report.
By Order of the Board
Helen Wakeford
Company Secretary
Registered Office
29 Clement's Lane
London
EC4N 7AE
20 May 2025
INDEPENDENT REVIEW REPORT TO INTEGRAFIN HOLDINGS PLC
Conclusion
We have been engaged by IntegraFin Holdings plc (the 'Company') to review the
condensed set of financial statements in the half-yearly financial report for
the six months ended 31 March 2025 which comprises the Interim Condensed
Consolidated Statement of Comprehensive Income, the Interim Condensed
Consolidated Statement of Financial Position, the Interim Condensed
Consolidated Statement of Cash Flows, the Interim Condensed Consolidated
Statement of Changes in Equity and the related notes 1 to 21. We have read the
other information contained in the half yearly financial report and considered
whether it contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 31 March 2025 is not prepared, in
all material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the Company are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
London
Date: 20 May 2025
Interim condensed consolidated statement of comprehensive income
Six months to Six months to
Note 31 March 2025 31 March 2024
Unaudited Unaudited
£m £m
Revenue 3 77.2 70.4
Cost of sales (1.6) (1.6)
Gross profit 75.6 68.8
Expenses
Administrative expenses 4 (52.8) (42.1)
Operating profit 22.8 26.7
Interest income 5.6 5.1
Interest expense (0.1) -
Net policyholder returns
Net (loss)/gain attributable to policyholder returns (1.1) 29.9
Change in investment contract liabilities 104.7 (2,305.9)
Fee and commission expenses (121.5) (104.6)
Policyholder investment returns 16.8 2,410.5
Net (loss)/gain attributable to policyholder returns (1.1) 29.9
Profit on ordinary activities before taxation attributable to policyholders 27.2 61.7
and shareholders
Policyholder tax credit/(charge) 2.6 (29.3)
Profit on ordinary activities before taxation attributable to shareholders 29.8 32.4
Total tax attributable to shareholder and policyholder returns (6.0) (37.3)
Less: tax attributable to policyholder returns (2.6) 29.3
Shareholder tax on profit on ordinary activities (8.6) (8.0)
Profit for the period 21.2 24.4
Other comprehensive loss
Exchange loss arising on translation of foreign operations (0.2) -
Total other comprehensive loss for the period (0.2) -
Total comprehensive income for the period 21.0 24.4
Earnings per share
Ordinary shares - basic 5 6.4p 7.4p
Ordinary shares - diluted 5 6.3p 7.4p
All activities of the Group are classed as continuing.
Notes 1 to 21 form part of these Financial Statements.
Interim condensed consolidated statement of financial position
31 March 30 September
Note 2025 2024
Unaudited Audited
£m £m
Non-current assets
Loans receivable 5.9 6.5
Intangible assets 8 13.2 20.9
Property, plant and equipment 1.6 1.5
Right-of-use assets 1.8 2.6
Deferred tax asset 7 1.0 1.1
23.5 32.6
Current assets
Investments 9 17.9 2.6
Prepayments and accrued income 18.3 18.8
Trade and other receivables 15 3.4 2.9
Current tax asset 2.4 1.6
Cash and cash equivalents 13 239.8 244.1
281.8 270.0
Current liabilities
Trade and other payables 16 26.4 21.7
Provisions 10 35.2 23.3
Lease liabilities 0.9 2.5
62.5 47.5
Non-current liabilities
Provisions 10 14.7 16.4
Lease liabilities 0.2 0.4
Deferred tax liabilities 7 22.8 30.0
37.7 46.8
Policyholder assets and liabilities
Cash held for the benefit of policyholders 14 1,790.3 1,622.8
Investments held for the benefit of policyholders 11 27,966.7 27,237.8
Liabilities for linked investment contracts 12 (29,757.0) (28,860.6)
Net assets 205.1 208.3
Equity
Called up equity share capital 3.3 3.3
Share-based payment reserve 4.1 4.1
Employee Benefit Trust reserve (3.7) (3.3)
Foreign exchange reserve (0.3) (0.1)
Non-distributable reserves 5.7 5.7
Retained earnings 196.0 198.6
Total equity 205.1 208.3
These interim condensed consolidated financial statements were approved by the
Board of Directors on 20 May 2025 and are signed on their behalf by:
Euan Marshall, Director
Company Registration Number: 08860879
Notes 1 to 21 form part of these Financial Statements.
Interim condensed consolidated statement of cash flows
Six months to Six months to
31 March 2025 31 March 2024
Unaudited Unaudited
£m £m
Cash flows from operating activities
Profit on ordinary activities before taxation attributable to policyholders 27.2 61.7
and shareholders
Adjustments for non-cash movements:
Amortisation and depreciation 1.5 0.7
Share-based payment charge 1.3 1.2
Interest charged on lease 0.1 -
Increase/(decrease) in provisions 10.2 (10.4)
Impairment of goodwill and intangible assets 7.5 -
Adjustments for cash affecting investing and financing activities:
Interest on cash and loans (5.6) (5.1)
Adjustments for statement of financial position movements:
Decrease/(increase) in trade and other receivables, and prepayments and - (10.4)
accrued income
Increase/(decrease) in trade and other payables 4.7 (1.8)
Adjustments for policyholder balances:
Increase in investments held for the benefit of policyholders (728.9) (2,763.8)
Increase in liabilities for linked investment contracts 896.4 2,864.8
Decrease in policyholder tax recoverable (9.9) (3.8)
Cash generated from operations 204.5 133.1
Income tax (paid)/benefit (4.0) 3.8
Interest paid on lease liabilities (0.1) -
Net cash flows generated from operating activities 200.4 136.9
Investing activities
Acquisition of property, plant and equipment (0.7) (0.7)
Purchase of investments (15.0) -
Decrease/(increase) in loans 0.6 (0.4)
Interest on cash and loans held 5.3 4.8
Net cash flows (used in)/generated from investing activities (9.8) 3.7
Financing activities
Purchase of own shares in Employee Benefit Trust (0.5) (0.3)
Purchase of shares for share scheme awards (1.2) (1.2)
Equity dividends paid (23.9) (23.2)
Payment of principal portion of lease liabilities (1.6) (0.4)
Net cash used in financing activities (27.2) (25.1)
Net increase in cash and cash equivalents 163.4 115.5
Interim condensed consolidated statement of cash flows (continued)
Cash and cash equivalents at beginning of period 1,866.9 1,597.1
Exchange losses on cash and cash equivalents (0.2) -
Cash and cash equivalents at end of period 2,030.1 1,712.6
Cash and cash equivalents consist of:
Cash and cash equivalents 239.8 192.4
Cash held for the benefit of policyholders 1,790.3 1,520.2
Cash and cash equivalents 2,030.1 1,712.6
Notes 1 to 21 form part of these Financial Statements.
Interim condensed consolidated statement of changes in equity
Called up equity share capital Non-distributable Share-based payment reserve Employee Benefit Trust reserve Retained earnings Total equity
insurance and foreign exchange reserves
£m £m £m £m £m £m
Balance at 1 October 2023 3.3 5.6 3.4 (2.6) 180.2 189.9
Comprehensive income for the year:
Profit for the year - - - - 24.4 24.4
Total comprehensive income for the year - - - - 24.4 24.4
Share-based payment expense - - 1.2 - - 1.2
Settlement of share-based payment - - (1.3) - - (1.3)
Purchase of own shares in EBT - - - (0.3) - (0.3)
Exercised share options - - - 0.1 - 0.1
Distributions to owners - Dividends paid - - - - (23.2) (23.2)
Balance at 31 March 2024 3.3 5.6 3.3 (2.8) 181.4 190.8
(unaudited)
Balance at 1 October 2024 3.3 5.6 4.1 (3.3) 198.6 208.3
Comprehensive income for the year:
Profit for the year - - - - 21.2 21.2
Movement in currency translation - (0.2) - - - (0.2)
Total comprehensive income for the year - (0.2) - - 21.2 21.0
Share-based payment expense - - 1.3 - - 1.3
Settlement of share-based payment - - (1.3) - - (1.3)
Purchase of own shares in EBT - - - (0.5) - (0.5)
Exercised share options - - - 0.1 - 0.1
Other movements - - - - 0.1 0.1
Distributions to owners - Dividends paid - - - - (23.9) (23.9)
Balance at 31 March 2025 3.3 5.4 4.1 (3.7) 196.0 205.1
(unaudited)
Notes 1 to 21 form part of these Financial Statements.
Notes to the Financial Statements (unaudited)
1. Basis of preparation
The interim condensed consolidated financial statements (financial statements)
have been prepared in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules (the DTR) of
the UK's Financial Conduct Authority (the UK FCA).
The set of financial statements has been prepared by applying the accounting
policies and presentation that were applied in the preparation of the Group's
published consolidated financial statements for the year ended 30 September
2024, which were prepared in accordance with UK-adopted International
Accounting Standards (IASs).
The financial information contained in these financial statements are
unaudited and do not constitute statutory accounts within the meaning of
Section 434 of the Companies Act 2006. The information has been reviewed by
the company's auditor, Ernst & Young LLP, and their report is presented on
pages 12-13.
The comparative financial information for the year ended 30 September 2024 in
this interim report constitute statutory accounts for that year.
The statutory accounts for 30 September 2024 have been delivered to the
Registrar of Companies. The auditor's report on those accounts was
unqualified, did not draw attention to any matters by way of emphasis, and did
not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
These financial statements should be read in conjunction with the Annual
Report and Accounts for the year ended 30 September 2024. The Group's
accounting policies, areas of significant judgement and the key sources of
estimation uncertainty are consistent with those applied to the consolidated
financial statements as at, and for, the year ended 30 September 2024.
Going Concern
The financial statements have been prepared on a going concern basis,
following an assessment by the board.
Going concern is assessed over the 12 month period from when the Interim
Results are approved, and the board has concluded that the Group has adequate
resources, liquidity and capital to continue in operational existence for at
least this period. This is supported by:
· The current financial position of the Group;
o The Group maintains a conservative balance sheet and manages and monitors
solvency and liquidity on an ongoing basis, ensuring that it has sufficient
financial resources for the foreseeable future.
o As at 31 March 2025, the Group had £239.8 million of shareholder cash on
the Interim Condensed Consolidated Statement of Financial Position,
demonstrating that liquidity remains strong.
· Detailed cash flow and working capital projections.
· Stress testing of liquidity, profitability and regulatory capital,
taking account of principal risks and possible adverse changes in both the
economic and geopolitical climate. These scenarios provide assurance that the
Group has sufficient capital and liquidity to operate under stressed
conditions.
When making this assessment, the board has taken into consideration both the
Group's current performance and the future outlook, including political and
geopolitical instability, and the high degree of unpredictability affecting
global markets and economies around the world. The environment remains
challenging, but our financial and operational performance has been positive
throughout, and the Group's fundamentals remain strong.
Stress and scenario testing has been carried out, in order to understand the
potential financial impacts of severe, yet plausible, scenarios on the Group.
This assessment incorporated a number of stress tests covering a broad range
of scenarios, including a cyber attack, system and process failures, and
persistent high inflation with depressed markets, and climate-related impacts.
Having conducted detailed cash flow and working capital projections, and
stress-tested liquidity, profitability and regulatory capital; taking account
of the economic challenges mentioned above; the board is satisfied that the
Group is well placed to manage its business risks. The board is also satisfied
that it will be able to operate within the regulatory capital limits imposed
by the Financial Conduct Authority (FCA), Prudential Regulation Authority
(PRA), and Isle Man Financial Services Authority (IoM FSA).
The board has concluded that the Group has adequate resources to continue its
operations, including operating in surplus of the regulatory capital and
liquidity requirements imposed by regulators, for a period of at least 12
months from the date this Interim Report is approved. For this reason, they
have adopted the going concern basis for the preparation of the financial
statements.
Changes to International Reporting Standards
Interpretations and standards which became effective during the year
The following amendments and interpretations became effective during the year.
Their adoption has not had any significant impact on the Group.
Amendments to IAS 1 Classification of Liabilities as Current or Non-Current Liabilities with 1 January 2024
Covenants
Amendments to IFRS 16 Lease Liability in a Sale and Leaseback 1 January 2024
Amendments to IAS 7 and IFRS 7 Disclosures: Supplier Finance Arrangements 1 January 2024
Interpretations and standards in issue but not yet effective
The Group has not early adopted any other standard, interpretation or
amendment that has been issued but is not yet effective, and does not expect
these to have a material impact on the financial statements of the Group.
2. Financial instruments
(i) Principal financial instruments
The principal financial instruments, from which financial instrument risk
arises, are as follows:
· Trade and other receivables
· Accrued fees
· Investments - gilts
· Investments - listed shares and securities
· Trade and other payables
· Loans receivable
· Policyholder balances of investments and cash
· Liabilities for linked investment contracts
· Cash and cash equivalents - instant access and notice accounts
· Cash and cash equivalents - money market funds
(ii) Financial instruments measured at fair value and
amortised cost
Financial assets and liabilities have been classified into categories that
determine their basis of measurement. For items measured at fair value, their
changes in fair value are recognised in the Interim Condensed Consolidated
Statement of Comprehensive Income.
The following tables show the carrying values of assets and liabilities for
each of these categories for the Group:
Financial assets: Fair value through profit or loss Amortised cost
31 March 30 September 31 March 30 September
2025 2024 2025 2024
£m £m £m £m
Cash and cash equivalents - instant access and notice accounts - - 238.8 244.1
Cash and cash equivalents - money market funds 1.0 - - -
Cash held for the benefit of policyholders - - 1,790.3 1,622.8
Investments - listed shares and securities 0.1 0.1 - -
Investments - gilts - - 17.8 2.5
Loans receivable - - 5.9 6.5
Accrued income - - 14.9 14.2
Trade and other receivables - - 3.4 2.9
Investments held for the policyholders 27,966.7 27,237.8 - -
Total financial assets 27,967.8 27,237.9 2,071.1 1,893.0
30 September
31 March 2024
2025
Assets which are not financial instruments £m £m
Prepayments 3.4 4.6
Current tax asset 2.4 1.6
5.8 6.2
Financial liabilities: Fair value through profit or loss Amortised cost
31 March 30 September 31 March 30 September
2025 2024 2025 2024
Trade payables - - 0.9 1.1
Lease liabilities - - 1.1 2.9
Other payables - - 13.5 7.3
Liabilities for linked investments contracts 27,966.7 27,237.8 1,790.3 1,622.8
Total financial liabilities 27,966.7 27,237.8 1,805.8 1,634.1
31 March 30 September
2025 2024
Liabilities which are not financial instruments £m £m
Accruals and deferred income 6.8 8.8
PAYE and other taxation 2.7 2.1
Other payables - due to HMRC 2.5 0.9
Deferred consideration - 1.5
12.0 13.3
(iii) Financial instruments not measured at fair value
Financial instruments not measured at fair value include cash and cash
equivalents (excluding money market funds), cash held for policyholders,
accrued fees, investments held in gilts, loans, leases, trade and other
receivables and trade and other payables. Due to their short-term nature
and/or expected credit losses recognised, the carrying value of these
financial instruments approximates their fair value.
(iv) Financial instruments measured at fair value - fair
value hierarchy
The table below classifies financial instruments that are recognised on the
Interim Condensed Consolidated Statement of Financial Position at fair value
in a hierarchy that is based on significance of the inputs used in making the
measurements.
The following table shows the three levels of the fair value hierarchy:
· Level 1: quoted prices (unadjusted) in active markets for identical
instruments;
· Level 2: instruments which are not actively traded but provide
regular observable prices; and
· Level 3: inputs that are based on Level 1 or Level 2 data, but for
which the last known price is over a year old (unobservable inputs).
The following table shows the Group's financial instruments measured at fair
value and split into the three levels:
At 31 March 2025
Level 1 Level 2 Level 3 Total
Assets £m £m £m £m
Term deposits 162.3 - - 162.3
Investments and securities 903.2 202.1 0.3 1,105.6
Bonds and other fixed-income securities 25.1 0.2 - 25.3
Holdings in collective investment schemes 26,385.7 287.2 0.6 26,673.5
Investments held for the benefit of policyholders 27,476.3 489.5 0.9 27,966.7
Money market funds 1.0 0 0 1.0
Investments - Listed shares and securities 0.1 - - 0.1
Total 27,477.4 489.5 0.9 27,967.8
Level 1 Level 2 Level 3 Total
Liabilities £m £m £m £m
Liabilities for linked investment contracts 27,476.3 489.5 0.9 27,966.7
Total 27,476.3 489.5 0.9 27,966.7
At 30 September 2024
Level 1 Level 2 Level 3 Total
Assets £m £m £m £m
Term deposits 221.3 - - 221.3
Investments and securities 944.3 137.5 0.4 1,082.2
Bonds and other fixed-income securities 26.1 0.3 - 26.4
Holdings in collective investment schemes 25,802.0 104.6 1.3 25,907.9
Investments held for the benefit of the policyholders 26,993.7 242.4 1.7 27,237.8
Investments - listed shares and securities 0.1 - - 0.1
Total 26,993.8 242.4 1.7 27,237.9
Level 1 Level 2 Level 3 Total
Liabilities £m £m £m £m
Liabilities for linked investment contracts 26,993.7 242.4 1.7 27,237.8
Total 26,993.7 242.4 1.7 27,237.8
Level 1 valuation methodology
Financial instruments included in Level 1 are measured at fair value using
quoted mid prices that are available at the reporting date and are traded in
active markets. These are mainly open-ended investment companies (OEICs), unit
trusts, investment trusts and exchange traded funds.
The price is sourced from our third party provider, who sources this directly
from the stock exchange or obtains the price directly from the fund manager.
Level 2 valuation methodology
Financial instruments included in Level 2 are measured at fair value using
observable mid prices traded in markets that have been assessed as not active
but which provide regular observable prices. These are mainly Structured
products and OEICs.
The price is sourced from the structured product provider or from our 3rd
party provider, who obtain the price directly from the fund manager.
Level 3 valuation methodology
Financial instruments included in Level 3 are measured at fair value using the
last known price and for which the price is over a year old. These are mainly
OEICs and Unit Trusts. These instruments have unobservable inputs as the
current observable market information is no longer available. Where these
instruments arise management will value them based on the last known
observable market price or other relevant information, including consideration
of the length of time elapsed since the last observable market price. These
factors may result in the last known price being adjusted by management, where
it is considered prudent to do so.
The prices are sourced as noted in level 1 and level 2 above.
For the purposes of identifying level 3 instruments, unobservable inputs means
that current observable market information is no longer available. Where these
instruments arise management will value them based on the last known
observable market price or other relevant information. No other valuation
techniques are applied.
Level 3 sensitivity to changes in unobservable measurements
For financial instruments assessed as Level 3, based on its review of the
prices used, the Group believes that any change to the unobservable inputs
used to measure fair value would not result in a significantly higher or lower
fair value measurement at 31 March 2025, and therefore would not have a
material impact on its reported results.
Review of prices
As part of its pricing process, the Group regularly reviews whether each
instrument can be valued using a quoted price and if it trades on an active
market, based on available market data and the specific circumstances of each
market and instrument.
The Group regularly assesses instruments to ensure they are categorised
correctly and Fair Value Hierarchy (FVH) levels adjusted accordingly. The
Group monitors situations that may impact liquidity such as suspensions and
liquidations while also actively collecting observable market prices from
relevant exchanges and asset managers. Should an instrument price become
observable following the resumption of trading the FVH level will be updated
to reflect this.
Transfers between Levels
The Group's policy is to assess each financial instrument it holds at the
period end, based on the last known price and market information, and assign
it to a Level.
The Group recognises transfers between Levels of the fair value hierarchy at
the end of the reporting period in which the changes have occurred. Changes
occur due to the availability of (or lack thereof) quoted prices, whether a
market is now active or not.
Transfers between Levels between 30 September 2024 and 31 March 2025 are
presented in the table below at their valuation at 31 March 2025:
Transfers from Transfers to £m
Level 1 Level 2 257.9
Level 2 Level 1 9.6
Level 3 Level 1 0.1
Level 3 Level 2 0.8
Level 2 Level 3 0.1
The reconciliation between opening and closing balances of Level 3 assets and
liabilities are presented in the table below:
2025 2024
£m £m
Opening balance as at 1 October 2024/2023 1.7 2.1
Unrealised gains or losses for the period ended 31 March 2025 - -
Transfers in to Level 3 at 31 March 2025 valuation 0.1 0.4
Transfers out of Level 3 at 31 March 2025 valuation (0.9) (0.9)
Purchases, sales, issues and settlement - -
Closing balance as at 31 March 2025/2024 0.9 1.6
Any resultant gains or losses on financial assets held for the benefit of
policyholders are offset by a reciprocal movement in the linked liability.
(v) Capital maintenance
The regulated companies in the Group are subject to capital requirements
imposed by the relevant regulators as detailed below:
Legal entity Regulatory regime
Integrafin Financial Arrangements Ltd (IFAL) Investment Firm Prudential regime (IFPR)
ILUK Solvency UK
ILInt Isle of Man risk based capital regime
Group capital requirements for 2025 are driven by the regulated entities,
whose minimum capital resources and requirements as detailed below:
IFAL ILUK ILInt
31 March 2025 30 September 2024 31 March 2025 30 September 2024 31 March 2025 30
September 2024
£m £m £m £m £m £m
Capital resource 87.0 74.8 323.2 313.1 52.3 49.0
Capital requirement 65.9 60.4 226.8 229.5 28.6 26.4
Coverage ratio 132% 124% 143% 136% 183% 186%
The Group's policy for managing capital is to ensure each regulated entity
maintains capital well above the minimum regulatory requirement plus any
additional capital requirement imposed by the regulator as a result of its
supervisory review and evaluation processes.
3. Segmental reporting
The revenue and PBT are attributable to activities carried out in the UK and
the Isle of Man.
The Group has three classes of business, which have been organised primarily
based on the products they offer, as detailed below:
· Investment administration services - this relates to services
performed by IFAL, which is the provider of the Transact wrap service. It is
the provider of the general investment account (GIA), is a self-invested
personal pension (SIPP) operator, an ISA manager and the custodian for all
assets held on the platform (except for those held by third party custodians).
· Insurance and life assurance business - this relates to ILUK and
IntegraLife International Limited (ILInt), insurance companies which provide
the Transact Personal Pension, Executive Pension, Section 32 Buy-Out Bond,
Transact Onshore and Offshore Bonds, and Qualifying Savings Plan on the
Transact platform.
· Adviser back-office technology - this relates to T4A, provider of
financial planning technology to adviser and wealth management firms via the
CURO adviser support system.
The summation of the Investment administration services and Insurance and life
assurance business constitutes the "Platform".
Other Group entities relates to the rest of the Group, which provide services
to support the Group's core operating segments. Analysis by class of business
is given below.
Statement of condensed consolidated comprehensive income - segmental
information for the six months ended 31 March 2025:
Investment administration services Insurance and life assurance business Adviser back-office technology Other Group entities Consolidation adjustments Total
£m £m £m £m £m £m
Revenue
Recurring annual charges 35.8 31.5 - - - 67.3
Recurring wrapper charges 1.6 5.1 - - - 6.7
Adviser back-office technology - - 2.5 - - 2.5
Other income 0.5 0.2 - 46.0 (46.0) 0.7
Total revenue 37.9 36.8 2.5 46.0 (46.0) 77.2
Cost of sales (0.7) (0.5) (0.4) - - (1.6)
Gross profit/(loss) 37.2 36.3 2.1 46.0 (46.0) 75.6
Administrative expenses (24.5) (17.6) (9.7) (39.3) 38.3 (52.8)
Operating profit/(loss) 12.7 18.7 (7.6) 6.7 (7.7) 22.8
Interest expense - - - (0.4) 0.3 (0.1)
Interest income 1.9 2.9 - 1.0 (0.2) 5.6
Net policyholder returns
Net income/(loss) attributable to policyholder returns - (1.1) - - - (1.1)
Change in investment contract liabilities - 104.7 - - - 104.7
Fee and commission expenses - (121.5) - - - (121.5)
Policyholder investment returns - 16.8 - - - 16.8
Net policyholder returns - (1.1) - - - (1.1)
Profit/(loss) on ordinary activities before taxation attributable to 14.6 20.5 (7.6) 7.3 (7.6) 27.2
policyholders and shareholders
Policyholder tax credit/(charge) - 2.6 - - - 2.6
Profit/(loss) on ordinary activities before taxation attributable to 14.6 23.1 (7.6) 7.3 (7.6) 29.8
shareholders
Total tax (charge) / benefit attributable to shareholder and policyholder (3.7) (2.6) - (0.3) 0.6 (6.0)
returns
Less: tax attributable to policyholder returns - (2.6) - - - (2.6)
Shareholder tax (charge)/benefit on profit on ordinary activities (3.7) (5.2) - (0.3) 0.6 (8.6)
Profit/(loss) for the period 10.9 17.9 (7.6) 7.0 (7.0) 21.2
Statement of condensed consolidated comprehensive income - segmental
information for the six months ended 31 March 2024:
Investment administration services Insurance and life assurance business Adviser back-office technology Other Group entities Consolidation adjustments Total
£m £m £m £m £m £m
Revenue
Recurring annual charges* 32.9 28.1 - - - 61.0
Recurring wrapper charges* 1.5 4.8 - - - 6.3
Adviser back-office technology - - 2.4 - - 2.4
Other income 0.5 0.2 - 40.9 (40.9) 0.7
Total revenue 34.9 33.1 2.4 40.9 (40.9) 70.4
Cost of sales (0.3) (0.6) (0.4) (0.3) - (1.6)
Gross profit/(loss) 34.6 32.5 2.0 40.6 (40.9) 68.8
Administrative expenses (21.5) (15.9) (2.7) (42.6) 40.6 (42.1)
Operating profit/(loss) 13.1 16.6 (0.7) (2.0) (0.3) 26.7
Interest expense - - - (0.3) 0.3 -
Interest income 1.2 3.2 - 1.0 (0.3) 5.1
Net policyholder returns
Net income/(loss) attributable to policyholder returns - 29.9 - - - 29.9
Change in investment contract liabilities - (2,305.9) - - - (2,305.9)
Fee and commission expenses - (104.6) - - - (104.6)
Policyholder investment returns - 2,410.5 - - - 2,410.5
Net policyholder returns - 29.9 - - - 29.9
Profit/(loss) on ordinary activities before taxation attributable to 14.3 49.7 (0.7) (1.3) (0.3) 61.7
policyholders and shareholders
Policyholder tax credit/(charge) - (29.3) - - - (29.3)
Profit on ordinary activities before taxation attributable to shareholders 14.3 20.4 (0.7) (1.3) (0.3) 32.4
Total tax attributable to shareholder and policyholder returns (2.9) (33.9) 0.2 (0.8) 0.1 (37.3)
Less: tax attributable to policyholder returns - 29.3 - - - 29.3
Shareholder tax on profit on ordinary activities (2.9) (4.6) 0.2 (0.8) 0.1 (8.0)
Profit/(loss) for the period 11.4 15.8 (0.5) (2.1) (0.2) 24.4
*Annual commission income and wrapper fee income have been renamed to
recurring annual charges and recurring wrapper charges respectively.
Statement of financial position - segmental information as at 31 March 2025:
Investment administration services Insurance and life assurance business Total
Adviser back-office technology
£m £m £m £m
Assets
Non-current assets 6.9 15.5 1.1 23.5
Current assets 114.7 165.3 1.8 281.8
Total assets 121.6 180.8 2.9 305.3
Liabilities
Current liabilities 11.7 49.8 1.0 62.5
Non-current liabilities - 37.0 0.7 37.7
Total liabilities 11.7 86.8 1.7 100.2
Policyholder assets and liabilities
Cash held for the benefit of policyholders - 1,790.3 - 1,790.3
Investments held for the benefit of policyholders - 27,966.7 - 27,966.7
Liabilities for linked investment contracts - (29,757.0) - (29,757.0)
Total policyholder assets and liabilities - - - -
Net assets 109.9 94.0 1.2 205.1
Non-current asset additions 0.1 0.1 - 0.2
Statement of financial position - segmental information as at 30 September
2024:
Investment administration services Insurance and life assurance business Total
Adviser back-office technology
£m £m £m £m
Assets
Non-current assets 11.7 19.7 1.2 32.6
Current assets 108.6 159.1 2.3 270.0
Total assets 120.3 178.8 3.5 302.6
Liabilities
Current liabilities 10.8 35.7 1.0 47.5*
Non-current liabilities 0.3 45.7 0.8 46.8*
Total liabilities 11.1 81.4 1.8 94.3
Policyholder assets and liabilities
Cash held for the benefit of policyholders - 1,622.8 - 1,622.8
Investments held for the benefit of policyholders - 27,237.8 - 27,237.8
Liabilities for linked investment contracts - (28,860.6) - (28,860.6)
Total policyholder assets and liabilities - - - -
Net assets 109.2 97.4 1.7 208.3
Non-current asset additions 0.5 0.5 - 1.0
*Prior period comparatives have been adjusted to correct for a casting
difference.
Segmental information: Split by geographical location
Revenue Six months to 31 March 2025 Six months to 31 March 2024
£m £m
United Kingdom 73.7 67.4
Isle of Man 3.5 3.0
Total 77.2 70.4
Non-current assets 31 March 30 September 2024
2025
£m £m
United Kingdom 16.5 24.9
Isle of Man 0.1 0.1
Total 16.6 25.0
Non-current assets for this purpose consist of intangible assets, property,
plant and equipment, and right-of-use assets.
4. Expenses by nature
The following expenses are included within administrative expenses:
Six months to Six months to
31 March 2025 31 March 2024
£m £m
Depreciation 1.3 0.4
Amortisation 0.2 0.2
Wages and employee benefits expense 31.4 28.4
Other staff costs 0.4 0.5
Auditor's remuneration:
- auditing of the Financial Statements of the Company pursuant to the 0.1 0.1
legislation
- auditing of the Financial Statements of subsidiaries 0.3 0.3
- other assurance services 0.2 0.2
Other professional fees 1.2 1.1
Regulatory fees 1.5 1.7
Non-underlying expenses:
- Other non-underlying expenses - deferred consideration 0.6 1.0
- Other non-underlying expenses - office move - 0.1
- Impairment of intangibles and goodwill 7.5 -
Other occupancy costs 1.3 2.4
Irrecoverable VAT 2.2 2.1
Other costs 4.6 3.6
Total administrative expenses 52.8 42.1
5. Earnings per share
Six months to 31 March 2025 Six months to 31 March 2024
Profit
Profit for the year and earnings used in basic and diluted earnings per share £21.2m £24.4m
Weighted average number of shares
Weighted average number of Ordinary shares 331.3m 331.3m
Weighted average numbers of Ordinary Shares held by Employee Benefit Trust (0.8m) (0.6m)
Weighted average number of Ordinary Shares for the purposes of basic EPS 330.5m 330.7m
Adjustment for dilutive share option awards 0.8m 0.6m
Weighted average number of Ordinary Shares for the purposes of diluted EPS 331.3 331.3
Earnings per share
Basic earnings per share 6.4p 7.4p
Diluted earnings per share 6.3p 7.4p
6. Tax on profit on ordinary activities
UK Corporation Tax for the six months ended 31 March 2025 has been calculated
at 25% (31 March 2024: 25%), representing the average annual effective UK
corporation tax rate expected for the full financial year. This has been
applied to the estimated taxable profit for the six-month period. For the
entities within the Group operating outside of the UK, tax is charged at the
relevant rate in each jurisdiction.
IAS 12 - International Tax Reform - Pillar Two Model rules
Pillar Two is part of the OECD's global tax reform framework and introduces a
global minimum effective tax rate of 15% for large multinational enterprise
groups with consolidated revenue of at least €750 million. Its objective is
to ensure a minimum level of taxation is paid in each jurisdiction in which
profits are earned.
Following an internal assessment, the Group does not expect to be within the
scope of the Pillar Two rules. This conclusion is based on HMRC's
supplementary draft guidance on the UK's Multinational Top-up Tax (MTT) and
Domestic Top-up Tax (DTT), which provides the UK interpretation of the OECD
framework. The draft guidance, which closed for consultation on 8 April 2025,
is expected to be finalised and published in mid-2025 and will serve as an
authoritative manual for interpreting and applying the MTT and DTT rules, in
alignment with the OECD's Pillar Two framework.
The draft guidance states that unit-linked investment policyholder returns
should be excluded from the revenue calculation to the extent they are matched
by an expense arising from a contractual obligation to pass those returns to
policyholders. On this basis, the Group's consolidated revenue falls below the
€750 million threshold, and the rules are therefore not expected to apply.
7. Deferred tax
Deferred tax is calculated in full on temporary differences under the
liability method using a tax rate of 25% (2024: 25%).
Deferred Tax Asset
Deferred Tax Asset Accelerated capital allowances Share based payments Policyholder unrealised losses/ (unrealised) Policyholder excess management expenses and deferred acquisition costs Policyholder unrealised losses on investment trusts Other deductible temporary differences Total
gains
£m £m £m £m £m £m £m
At 01 October 2023 0.1 0.5 - - - 0.1 0.7
Charge to income - 0.5 - (1.5) (0.8) - (1.8)
Offset against deferred tax liability (0.1) - - 1.5 0.8 - 2.2
At 30 September 2024 - 1.0 - - - 0.1 1.1
Charge to income - (0.1) - (0.2) - - (0.3)
Offset against deferred tax liability - - - 0.2 - - 0.2
As at 31 March 2025 - 0.9 - - - 0.1 1.0
Deferred Tax Liability
Deferred Tax Liability Accelerated capital allowances Policyholder tax on unrealised gains Other taxable differences Total
£m £m £m £m
At 01 October 2023 - 6.5 0.7 7.2
Charge to income 0.1 20.6 (0.1) 20.6
Offset against deferred tax asset (0.1) 2.3 - 2.2
At 30 September 2024 - 29.4 0.6 30.0
Charge to income - (6.8) (0.6) (7.4)
Offset against deferred tax asset - 0.2 - 0.2
As at 31 March 2025 - 22.8 - 22.8
8. Intangible assets
Software and IP rights Goodwill Customer relationships Software Brand Total
Cost £m £m £m £m £m £m
At 1 October 2024 12.5 18.3 2.1 2.0 0.3 35.2
Impairment - (5.3) (1.4) (0.7) (0.1) (7.5)
At 31 March 2025 12.5 13.0 0.7 1.3 0.2 27.7
Amortisation
At 1 October 2024 12.5 - 0.5 1.1 0.1 14.2
Charge for the period - - 0.2 0.1 - 0.3
At 31 March 2025 12.5 - 0.7 1.2 0.1 14.5
Net Book Value
At 1 October 2024 - 18.3 1.6 0.9 0.2 20.9
At 31 March 2025 - 13.0 - 0.1 0.1 13.2
Cost
At 1 October 2023 12.5 18.3 2.1 2.0 0.3 35.2
At 31 March 2024 12.5 18.3 2.1 2.0 0.3 35.2
Amortisation
At 1 October 2023 12.5 - 0.4 0.8 0.1 13.8
Charge for the period - - 0.1 0.1 - 0.2
At 31 March 2024 12.5 - 0.5 0.9 0.1 14.0
Net Book Value
At 1 October 2023 - 18.3 1.7 1.2 0.2 21.4
At 31 March 2024 - 18.3 1.6 1.1 0.2 21.2
Amortisation of intangible assets is recognised within administrative expenses
in the Interim Condensed Consolidated Statement of Comprehensive Income .
Goodwill impairment assessment
In accordance with IFRS, goodwill is not amortised but is tested for
impairment annually, or more frequently if there are indications that it may
be impaired. The impairment assessment compares the carrying value of goodwill
to the recoverable amount, which is the higher of value in use and the fair
value less costs of disposal. The recoverable amount is determined based on
value in use calculations using cash flow projections from financial budgets
approved by senior management covering a five-year period.
The Group's goodwill relates to the acquisition of IAD Pty in July 2016 and
T4A in January 2021.
The carrying amount of the IAD Pty goodwill is allocated to the two cash
generating units ("CGUs") that relate to the Transact platform, as these
benefit from the IAD Pty acquisition. There are no indications of impairment,
so the disclosures in Note 12 of the 30 September 2024 accounts remain
unchanged, and no further assessment is required.
The carrying amount of goodwill related to T4A has been allocated to the
cash-generating unit (CGU) associated with the CURO software, as this
represents the primary source of revenue for T4A. Indicators of potential
impairment have been identified, and as a result, an impairment assessment is
required.
The below tables show the carrying amount of the T4A CGU as at 31 March 2025,
before the recognition of any impairment:
T4A CGU
Mar 25 Sep 2024
£m £m
T4A net assets 0.2 0.3
Intangible assets (customer relationships, software and brand) 2.4 2.7
Goodwill 5.3 5.3
Total CGU carrying value 7.9 8.3
The recoverable amount of the CGU has been determined using a value-in-use
approach, based on cash flow projections derived from management-approved
budgets covering the five-year period to 31 March 2030. Beyond this planning
horizon, terminal value has been estimated using the long-term growth rates
outlined below. The discount rate applied in the valuation reflects the
Group's weighted average cost of capital (WACC), adjusted to take into account
risks specific to the CGU.
Key assumptions used in the value in use calculations are as follows:
31 March
2025 30 September 2024
Discount rate 19.0% 14.4%
Forecast period 5 years 5 years
Long-term growth rate 3.0% 3.0%
Licence user annual growth rate 9.3% 10.1%
Annual expense inflation 4.1% 3.5%
The impairment tests relating to the T4A acquisition indicated that an
impairment is required, as the recoverable amount is lower than the carrying
value of the CGU. The result of the assessment indicates an impairment of
£7.5 million for T4A's CGU, leading to a full impairment of the £5.3m
goodwill balance relating to the T4A acquisition, and an additional £2.2m
impairment of the remaining intangible assets recognised as part of the T4A
acquisition, with the residual carrying amount being equal to the recoverable
amount.
Sensitivity to changes in assumptions
The current calculations have resulted in an impairment of the full goodwill
balance and part of the remaining carrying value of the CGU, with only an
immaterial balance remaining of £0.4 million and therefore any further
adverse change would not result in a material movement.
The assumptions within the current calculations which are sensitive to change
are explained below:
- Discount rate - Discount rates represent the current market
assessment of the risks specific to each CGU, taking into consideration the
time value of money and individual risks of the underlying assets that have
not been incorporated in the cash flow estimates. Any rise in the pre-tax
discount rate from the current level of 19.0% would result in a further
impairment.
- Long-term growth rate - Post the five year business plan, the growth
rate used to determine the terminal value of the cash generating units is
based on a long-term growth rate of 3.0%. Any reduction in the long-term
growth rate from the current rate would result in a further impairment.
- Licence user growth - T4A is continuing to build its client base, and
future profitability is heavily dependent on increasing the number of licenced
users. Any reduction in the projected compound annual growth rate of CURO
licence users from the current rate 9.3% would result in a further impairment.
- Annual expense inflation - As the T4A business grows, it is likely
that the cost base will also do so. T4A is managing its cost base carefully,
to support future profitability. Any rise in the projected expense rates would
result in a further impairment.
Further adjustments may be required in the future to account for evolving
risks and broader macroeconomic uncertainty.
9. Investments
31 March 30 September
2025 2024
£m £m
Fair value through profit or loss
Listed shares and securities 0.1 0.1
Total 0.1 0.1
Amortised cost
Gilts 17.8 2.5
Total 17.8 2.5
17.9 2.6
The gilts shown above are interest-bearing and the associated income is
recorded within "interest income" in the Interim Condensed Consolidated
Statement of Comprehensive Income.
10. Provisions
31 March 30 September
2025 2024
£m £m
Balance brought forward 39.7 48.2
Additional provisions made, including to ILUK provision 17.5 7.1
Increase/(reduction) in provisions made in the period 0.5 (7.6)
Amounts used from ILUK provision (6.6) (7.1)
Unused amounts reversed from ILUK provision (1.5) (1.5)
Increase in other provisions 0.3 0.6
Balance carried forward 49.9 39.7
Amounts falling due within one year 35.2 23.3
Amounts falling due after one year 14.7 16.4
Dilapidations provisions 0.2 0.2
ILUK policyholder reserves 47.2 37.8
Compensation provisions 2.2 1.3
Other provisions 0.3 0.4
49.9 39.7
ILUK policyholder reserves comprises claims received from HMRC that are yet to
be returned to policyholders, charges taken from unit-linked funds and claims
received from HMRC to meet current and future policyholder tax obligations.
These are expected to be paid to policyholders over the course of the next
seven years.
11. Investments held for the benefit of policyholders
31 March 2025 31 March 2025 30 September 2024 30 September
2024
Cost Fair value Cost Fair value
ILInt £m £m £m £m
Investments held for the benefit of policyholders 2,792.6 3,100.4 2,486.7 2,873.0
2,792.6 3,100.4 2,486.7 2,873.0
ILUK
Investments held for the benefit of policyholders 21,837.5 24,866.3 20,746.4 24,364.8
21,837.5 24,866.3 20,746.4 24,364.8
Total 24,630.1 27,966.7 23,233.1 27,237.8
All amounts are current as customers are able to make same-day withdrawal of
available funds and transfers to third-party providers are generally performed
within a month.
These assets are held to cover the liabilities for unit linked investment
contracts. All contracts with customers are deemed to be investment contracts
and, accordingly, assets are 100% matched to corresponding liabilities.
12. Liabilities for linked investment contracts
31 March 30 September 2024
2025
Fair value Fair value
ILInt £m £m
Unit linked liabilities 3,332.6 3,110.7
3,332.6 3,110.7
ILUK
Unit linked liabilities 26,424.4 25,749.9
26,424.4 25,749.9
Total 29,757.0 28,860.6
Analysis of change in liabilities for linked investment contracts
Six months to 31 March Year to Six months to 31 March
2025 30 September 2024
2024
£m £m £m
Opening balance 28,860.6 24,440.9 24,440.9
Investment inflows 2,095.4 3,490.7 1,733.8
Investment outflows (1,061.2) (2,057.2) (1,144.0)
Changes in fair value of underlying assets (132.9) 3,005.2 2,277.3
Investment income 149.7 279.2 133.3
Other fees and charges - Transact (33.1) (65.5) (31.0)
Other fees and charges - other third parties (121.5) (232.7) (104.6)
Closing balance 29,757.0 28,860.6 27,305.7
The benefits offered under the unit-linked investment contracts are based on
the risk appetite of policyholders and the return on their selected collective
fund investments, whose underlying investments include equities, debt
securities, property and derivatives. This investment mix is unique to
individual policyholders. When the diversified portfolio of all policyholder
investments is considered, there is a clear correlation with the FTSE 100
index and other major world indices, providing a meaningful comparison with
the return on the investments.
The maturity value of these financial liabilities is determined by the fair
value of the linked assets at maturity date. There will be no difference
between the carrying amount and the maturity amount at maturity date.
13. Cash and cash equivalents
31 March 30 September
2025 2024
£m £m
Bank balances - Instant access 132.4 198.1
Bank balances - Notice accounts 106.4 46.0
Bank balances - Money market funds 1.0 -
Total 239.8 244.1
Bank balances held in instant access accounts are current and available for
use by the Group.
All of the bank balances held in notice accounts require 3 months or less
notice before they are available for use by the Group. £68.6 million (2024:
£67.8 million) of the total balance is
corporate cash held in respect of provisions for policyholder tax that will
become payable either to HMRC or returned to policyholders.
Investments in money market funds are classified as cash and cash equivalents.
These investment funds are held for short-term liquidity purposes of less than
three months, are highly liquid, have a strong credit rating and a very low
risk of reduction in value.
All cash and cash equivalents are recognised at amortised cost, apart from
money market funds, which are recognised mandatorily at FVTPL.
14. Cash held for the benefit of policyholders
31 March 30 September
2025 2024
£m £m
Cash and cash equivalents held for the benefit of the policyholders - instant 1,558.2 1,385.0
access - ILUK
Cash and cash equivalents held for the benefit of the policyholders - instant 232.1 237.8
access - ILINT
Total 1,790.3 1,622.8
The cash and cash equivalents held for the benefit of the policyholders are
held to cover the liabilities for unit linked investment contracts. These
amounts are 100% matched to corresponding liabilities.
15. Trade and other receivables
31 March 30 September
2025 2024
£m £m
Other receivables 2.3 3.0
Less: expected credit losses (0.1) (0.1)
Other receivables net 2.2 2.9
Amount due from policyholders to meet current tax liability 1.2 -
Total 3.4 2.9
16. Trade and other payables
31 March 30 September
2025 2024
£m £m
Trade payables 0.9 1.1
PAYE and other taxation 2.7 2.1
Other payables 16.0 8.2
Accruals 6.8 8.8
Deferred consideration - 1.5
Total 26.4 21.7
Other payables mainly comprises £11.8 million (2024: £6.5 million) in
relation to bonds awaiting approval.
17. Related parties
There were no material changes to the related party transactions during the
period.
18. Principal risks and uncertainties
Within the Risk and Risk Management section of the 2024 Annual Report and
Financial Statements is a comprehensive view of what the board considered to
be the principal risks and uncertainties that could undermine the successful
achievement of the Group's strategic objectives, threaten its business model
or future performance or that might present significant operational
disruption.
The executive and board regularly review these principal risks and
uncertainties and believe that their nature remains unchanged from those
presented within the 2024 Annual Report and Financial Statements.
Recent market volatility resulting from US trade policy is consistent with the
market risk described in the 2024 Annual Report and Financial Statements. The
Group continues to monitor the developments and the potential impact on Group
revenue.
19. Contingent liability
Some assets in ILUK policyholder linked funds remain under review for
potential remediation. As at 30 September 2024, we disclosed a £2.4 million
contingent liability in relation to this matter. However, following further
analysis and information received after the year-end, the likelihood of an
economic outflow is now considered remote. Accordingly, no contingent
liability is recognised in respect of this matter as at 31 March 2025.
20. Events after the reporting date
As noted on page 1, an interim dividend of 3.3 pence per share was declared on
20 May 2025. This dividend has not been accrued in the Interim Condensed
Consolidated Statement of Financial Position.
The Board has reviewed post year-end developments and confirms that the
principal risks and uncertainties remain consistent with those disclosed in
the 2024 Annual Report. The recent US tariffs have increased market volatility
since the reporting date, and the Group accepts the impact this exposure to
market risk has on revenue. It continues to monitor the ongoing uncertainty
relating to US trade policy and the impact on the global markets.
On 3 April 2025, the lease for the Group's new London office commenced. A
Right of Use asset of £13.0 million and a corresponding lease liability of
£12.0 million was recognised. The lease tenure runs until April 2040,
covering a 15-year period.
There are no other events subsequent to the reporting period that require
disclosure in, or amendment to the interim condensed consolidated financial
statements.
21. Dividends
During the six month period to 31 March 2025 the Company paid a second interim
dividend of £23.9 million (7.2 pence per share) to shareholders in respect of
financial year 2024. This was in addition to the first interim dividend of
£10.6 million (3.2 pence per share) in respect of financial year 2024, which
was paid in July 2024. The total of £34.4 million (10.4 pence per share)
compares with a full year interim dividend of £33.7 million (10.2 pence per
share) in respect of the full financial year 2023.
Directors, Company details and advisers
Executive Directors
Michael Howard
Alexander Scott
Euan Marshall
Non-Executive Directors
Richard Cranfield
Rita Dhut
Caroline Banszky
Victoria Cochrane
Robert Lister
Irene McDermott Brown (appointed 1 January 2025)
Company Secretary
Helen Wakeford
Independent Auditors
Ernst and Young LLP, 25 Churchill Place, Canary Wharf, London, E14 5EY
Solicitors
Eversheds Sutherland (International LLP), One Wood Street, London, EC2V 7WS
Corporate Advisers
Peel Hunt LLP, 7th Floor 100 Liverpool Street, London, England, EC2M 2AT
Barclays Bank PLC, 1 Churchill Place, Canary Wharf, London, E14 5HP
Principal Bankers
National Westminster Bank Plc, 250 Bishopsgate, London, EC2M 4AA
Registrars
Equiniti Group plc, Sutherland House, Russell Way, Crawley, RH10 1UH
Registered Office
29 Clement's Lane, London, EC4N 7AE
Investor Relations
Luke Carrivick 020 7608 4900
Website
www.integrafin.co.uk (http://www.integrafin.co.uk)
Company number
8860879
Glossary of Alternative Performance Measures (APM's)
Various alternative performance measures are referred to in these interim
accounts, which are not defined by IFRS. They are used in order to provide
better insight into the performance of the Group. Further details are provided
below.
APM Financial data page ref Definition and purpose
Operational performance measures
Funds under direction (FUD) Data sourced internally Calculated as the total market value of all cash and assets on the platform,
valued as at the respective period end.
Period end HY 2025 HY 2024
£bn £bn
Cash 5.7 4.9
Assets 60.2 56.1
FUD 65.9 61.0
%change on the previous year 8% 13%
Average daily FUD HY 2025 HY 2024
£bn £bn
FUD 66.3 57.0
%change on the previous year 16% 8%
The measurement of FUD is the primary driver of the largest component of the
Group's revenue. FUD is used to derive the annual charges due to the Group.
These values are not reported within the Financial Statements or the
accompanying notes.
Gross inflows and Net inflows Data sourced internally Calculated as gross inflows onto the platform less outflows leaving the
platform by clients during the respective financial year.
Inflows and outflows are measured as the total market value of assets and cash
joining or leaving the platform.
HY 2025 HY 2024
£bn £bn
Gross inflows 5.1 3.9
Outflows (3.0) (2.8)
Net inflows 2.1 1.1
%change on the previous year 91% (31%)
The measurement of net inflows onto the platform shows the net movement of
cash and assets on the platform during the year. This directly contributes to
FUD and therefore revenue.
These values are not reported within the Financial Statements or the
accompanying notes.
Annualised net flows Data sourced internally Calculated by doubling the half year net flows to represent 1 year and
expressing this amount as a percentage of the opening FUD.
HY 2025 HY 2024
£bn £bn
Net inflows 2.1 1.1
Net flows annualised x 12/6 4.2 2.2
Divided by opening FUD 64.1 55.0
Annualised net flows 7% 4%
These values are not reported within the Financial Statements or the
accompanying notes.
Transact platform clients Data sourced internally Transact platform clients are calculated as the total number of clients on the
platform.
HY 2025 HY 2024
Transact platform clients 241,197 231,581
%increase 4% 1%
This measurement is an indicator of our presence in the market.
These values are not reported within the Financial Statements or the
accompanying notes.
The measurement of FUD is the primary driver of the largest component of the
Group's revenue. FUD is used to derive the annual charges due to the Group.
These values are not reported within the Financial Statements or the
accompanying notes.
Gross inflows and Net inflows
Data sourced internally
Calculated as gross inflows onto the platform less outflows leaving the
platform by clients during the respective financial year.
Inflows and outflows are measured as the total market value of assets and cash
joining or leaving the platform.
HY 2025 HY 2024
£bn £bn
Gross inflows 5.1 3.9
Outflows (3.0) (2.8)
Net inflows 2.1 1.1
% change on the previous year 91% (31%)
The measurement of net inflows onto the platform shows the net movement of
cash and assets on the platform during the year. This directly contributes to
FUD and therefore revenue.
These values are not reported within the Financial Statements or the
accompanying notes.
Annualised net flows
Data sourced internally
Calculated by doubling the half year net flows to represent 1 year and
expressing this amount as a percentage of the opening FUD.
HY 2025 HY 2024
£bn £bn
Net inflows 2.1 1.1
Net flows annualised x 12/6 4.2 2.2
Divided by opening FUD 64.1 55.0
Annualised net flows 7% 4%
These values are not reported within the Financial Statements or the
accompanying notes.
Transact platform clients
Data sourced internally
Transact platform clients are calculated as the total number of clients on the
platform.
HY 2025 HY 2024
Transact platform clients 241,197 231,581
% increase 4% 1%
This measurement is an indicator of our presence in the market.
These values are not reported within the Financial Statements or the
accompanying notes.
Income statement measures
Non-underlying expenses Interim Condensed Consolidated Statement of Comprehensive Income Calculated as costs which have been incurred outside of the ordinary course of
the business.
Non-underlying expenses HY 2025 HY 2024
£m £m
Goodwill impairment 7.5 -
Post-combination remuneration 0.6 1.0
Office move - 0.1
Non-underlying expenses 8.1 1.1
Our non-underlying expenses represent costs which do not relate to our
recurring business operations and hence should be separated from operating
expenses in the income statement.
Goodwill impairment relates to impairment of the goodwill and intangible
assets recorded on the acquisition of T4A, details of this have been disclosed
in note 7 of these accounts.
Post-combination remuneration relates to the payment to the original
shareholders of T4A. This is comprised of the deferred consideration payable
in relation to the acquisition of T4A and is recognised as remuneration over
four years from January 2021 to December 2024.
Underlying EPS Financial review Calculated as profit after tax net of non-underlying expenses, divided by
called up equity share capital. Basic and diluted calculations have been
provided below.
Weighted average number of Ordinary Shares for the purposes of basic EPS
excludes dilutive share option awards.
Weighted average number of Ordinary Shares for the purposes of diluted EPS
includes dilutive share option awards
Management use diluted EPS when discussing financial performance in the front
end of these accounts.
HY 2025 HY 2024
£m £m
Profit after tax 21.0 24.4
Less: Non-underlying expenses (8.1) (1.1)
Underlying profit after tax 29.3 25.5
Divide by: Weighted average number of Ordinary Shares for the purposes of 330.5 330.7
basic EPS
Underlying earnings per share - basic 8.9 pence 7.7 pence
Divide by: Weighted average number of Ordinary Shares for the purposes of 331.3 331.3
diluted EPS
Underlying earnings per share - diluted 8.8 pence 7.7 pence
Underlying PBT Financial review Calculated as profit before tax net of non-underlying expenses.
HY HY
2025 2024
£m £m
Profit before tax 29.8 32.4
Add: Non-underlying expenses 8.1 1.1
Underlying profit before tax 37.9 33.5
Our non-underlying expenses represent costs which do not relate to our
recurring business operations and hence should be separated from operating
expenses in the income statement.
Goodwill impairment relates to impairment of the goodwill and intangible
assets recorded on the acquisition of T4A, details of this have been disclosed
in note 7 of these accounts.
Post-combination remuneration relates to the payment to the original
shareholders of T4A. This is comprised of the deferred consideration payable
in relation to the acquisition of T4A and is recognised as remuneration over
four years from January 2021 to December 2024.
Underlying EPS
Financial review
Calculated as profit after tax net of non-underlying expenses, divided by
called up equity share capital. Basic and diluted calculations have been
provided below.
Weighted average number of Ordinary Shares for the purposes of basic EPS
excludes dilutive share option awards.
Weighted average number of Ordinary Shares for the purposes of diluted EPS
includes dilutive share option awards
Management use diluted EPS when discussing financial performance in the front
end of these accounts.
HY 2025 HY 2024
£m £m
Profit after tax 21.0 24.4
Less: Non-underlying expenses (8.1) (1.1)
Underlying profit after tax 29.3 25.5
Divide by: Weighted average number of Ordinary Shares for the purposes of 330.5 330.7
basic EPS
Underlying earnings per share - basic 8.9 pence 7.7 pence
Divide by: Weighted average number of Ordinary Shares for the purposes of 331.3 331.3
diluted EPS
Underlying earnings per share - diluted 8.8 pence 7.7 pence
Underlying PBT
Financial review
Calculated as profit before tax net of non-underlying expenses.
HY HY
2025 2024
£m £m
Profit before tax 29.8 32.4
Add: Non-underlying expenses 8.1 1.1
Underlying profit before tax 37.9 33.5
IntegraFin Holdings plc, 29 Clement's Lane, London, EC4N 7AE Tel: (020)
7608 4900 Fax: (020) 7608 5300
(Registered office: as above; Registered in England and Wales under number:
8860879)
The holding company of the Integrated Financial Arrangements Ltd group of
companies.
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 IR QBLFLEELFBBXRecent news on Integrafin Holdings
See all newsREG - IntegraFin Holdings - Director/PDMR Shareholding
AnnouncementREG - IntegraFin Holdings - Director/PDMR Shareholding
AnnouncementREG - IntegraFin Holdings - Half-year Report
AnnouncementREG - Chelverton UK DivTst IntegraFin Holdings - Holding(s) in Company
AnnouncementREG - Chelverton UK DivTst IntegraFin Holdings - Holding(s) in Company
Announcement