IntegraFin reports year of growth, flags coming rise in costs

(Sharecast News) - IntegraFin, operator of the 'Transact' investment platform, reported a 17% improvement in funds under direction in its final results on Wednesday, to £64.1bn, driven by net inflows of £2.5bn. The FTSE 250 company said revenue increased 7% to £144.9m for the 12 months ended 30 September, reflecting higher average daily funds under direction on the Transact platform.

Underlying profit before tax rose 12% to £70.6m, while underlying earnings per share grew 7%, despite the impact of the UK's 25% corporation tax rate.

The group credited its proprietary technology investments for enhancing platform digitalisation and integration, supporting its operational efficiency and client experience.

It declared a second interim dividend of 7.2p per share, bringing the total dividend for the 2024 financial year to 10.4p, a slight increase from 10.2p in 2023.

The dividend would be paid on 31 January.

Looking ahead, IntegraFin said it expected continued growth in the adviser platform market, bolstered by an improving macroeconomic environment following greater clarity on UK fiscal policy and the US elections.

The group said it was planning targeted price reductions, including changes to pension wrapper fees and non-advised client charges, which would incur a combined annualised cost of about £3m.

Administrative costs were forecast to rise by 9% in 2025, partly due to a £2m one-off expense for relocating its London office.

From the 2026 financial year, cost increases were expected to moderate to low- to mid-single-digit percentages.

The company said it was optimistic about its growth trajectory, underpinned by its scalable platform and market fundamentals.

"We have delivered growth in our key performance metrics, including reaching record highs in average daily funds under direction, adviser numbers and client numbers," said group chief executive officer Alex Scott.

"Growth in average daily funds under direction delivered a 7% uplift to revenue in 2024, helping increase underlying profit before tax to £70.6m.

"The macroeconomic picture has improved throughout the year."

Scott said growth opportunities within the UK adviser market remained "promising", although the company was "cognisant" of ongoing geopolitical risks.

"The announcements in the Autumn Budget reaffirmed the importance of the UK pension market as the government continues to prioritise retirement security.

"The flexibility and ongoing enhancements enabled by our proprietary technology, coupled with our customer-first principles and personal, high-touch client service ensure that the group is well positioned to seize opportunities and navigate emerging threats.

"The group remains focussed on delivering leading financial adviser technology, service, and client value for money, which will in turn deliver organic growth."

At 0811 GMT, shares in IntegraFin were down 3.97% at 373p.

Reporting by Josh White for Sharecast.com.