Integrafin Holdings Plc · LSE:IHP
Integrafin — H1 2024 Earnings Presentation
27 slides from Integrafin's earnings presentation, May 22, 2024
Slide 1: Results Presentation: Half year ended 31 March 2024
Results Presentation Half year ended 31 March 2024
Slide 2: Agenda
Agenda 1. Group HY24 highlights 2. Financial update and guidance 3. Transact platform performance 4. Summary 5 Q&A 2
Slide 3: Group HY24 highlights
Group HY24 highlights Record high closing FUD and Sustained commercial momentum during HY24 Well-positioned in a growing market healthy net inflows during HY24 Period-end FUD on the platform at a The IHP group has delivered underlying Transact has a c.9% share of FUD(1) in record high £61.0bn, with
Slide 4: Our business model is delivering growth
Our business model is delivering growth Leveraging our leading customer service, technology, and scalable operations to drive business growth HY24 results Invest in the Maintain cash generation Drive growth Deliver on dividend business and grow and a strong balance policy earnings sheet • Advisers +
Slide 5: Financial update
i: IntegraFin Financial update
Slide 6: Group Financial KPIs HY24
Group Financial KPIs HY24 Average daily Funds Under Direction (£bn) Group Revenue (£m) +8% +6% 57.0 70.4 68.4 54.6 67.0 66.6 66.5 53.0 52.6 52.1 FY22 FY23 FY24 FY22 FY23 FY24 H1 H2 H1 H2 Group underlying profit before tax and margin (£m) Group dividend per share (pence) 48.3% 50.2% 44.2% 49.1% 47.6%
Slide 7: Growing Group revenue
Growing Group revenue HY24 Total Platform HY23 Total Platform Transact platform revenue includes a mix of: Revenue: £68.0m Revenue: £64.1m 0.7 0.9 • Recurring annual commission (dependent on average 6.3 daily FUD levels) Transact (£m) 6.1 • Wrapper fees (fixed £ charge, dependent on the number of wr
Slide 8: Costs continue to be carefully managed in line with guidance
Costs continue to be carefully managed in line with guidance HY24 Total Underlying Operating Expenses (£m) +6% Headcount HY24: ~670 Headcount HY23: ~630 0.0 -0.8 £m £41.0m 0.5 £37.0m 0.7 0.6 1.2 2.4 -0.5 2.4 1.4 1.2 4.1 3.4 5.0 5.0 41.3 41.8 41.8 40.6 39.4 37 28.9 26.5 HY23 Total Underlying Employee
Slide 9: Platform revenue continues to grow, with moderate revenue yield decreases
Platform revenue continues to grow, with moderate revenue yield decreases from our pricing initiatives Platform revenue (£m), and revenue yield (bps) £80 35.0 bps £ Millions 30.2 £70 29.0 28.1 30.0 26.4 £60 24.6 24.4 23.9 25.0 £50 20.0 £40 68.0 15.0 65.3 64.1 £30 58.6 53.8 47.6 10.0 44.6 £20 5.0 £10
Slide 10: Healthy Group liquidity position and cash generation
Healthy Group liquidity position and cash generation Group liquidity position As at 31.03.24 Dividend FY24 FY23 FY22 (£m) Total Group consolidated cash and UK Per share 215.0 gilts Ordinary – first 3.2 pence 3.2 pence 3.2 pence interim Total Group cash and UK Gilts held for 172.3 regulatory and oper
Slide 11: Financial guidance for FY24 remains unchanged
Financial guidance for FY24 remains unchanged FY24 • Platform buy commission, and wrapper fee for JISAs, were removed in March and April 2024 Platform revenue respectively – total annualised cost to revenue of £0.6m Staff costs • Expected to be a c.12% increase on FY23 (FY23:£53.9m) Regulatory and p
Slide 12: Transact Platform update
2: IntegraFin Transact Platform update
Slide 13: Robust Transact platform performance during HY24
Robust Transact platform performance during HY24 • Record closing FUD £61.0bn (HY23 £54.0bn) • Average daily FUD for the period £57.0bn (HY23 £52.6bn) Advisers Clients 7.9k up 4% (HY23: 7.6k) 231.6k up 1%1 (HY23: 228.2k) 95% Client Retention Rate in HY24 Adviser Concentration: Average Client Profile
Slide 14: Resilient growth of the Transact platform
Resilient growth of the Transact platform Transact FUD and client numbers growth Source of gross inflows (HY24) £70 250 2% Billions Thousands £60 200 £50 39% 150 £40 £30 100 59% £20 50 £10 Inflows from current investors putting more onto the platform £0 - Inflows from advisers with established relat
Slide 15: The Transact Platform digitalisation plan is progressing well
The Transact Platform digitalisation plan is progressing well Key portfolio applications now opened online by adviser firm staff, with real time data validation Key pension and ISA wrappers now opened online by Implemented digital enhancements adviser firm staff, with streamlined consent process to
Slide 16: Transact's award-winning service proposition
Transact’s award-winning service proposition Category Large Platform Category Large Platform (>£25bn FUD)*** (>£30bn FUD)*** 2024 TBC 2023 • Professional Adviser Awards 2024 – ‘Best Platform for Advisers’ 2022 • Highest Net Promotor Score (NPS) out of 16 platform providers* • Highest overall user sa
Slide 17: Transact is the 3rd largest in the UK adviser platform market
Transact is the 3rd largest in the UK adviser platform market FUD as at Technology 31.12.23 Platform Provider (latest available) 1 Quilter £73.8bn • Our award-winning service and Consumer Duty 2 Abrdn £70.9bn aligned proposition has helped us become one of the largest adviser platforms in the UK 3 T
Slide 18: We operate in a growing UK adviser platform market
We operate in a growing UK adviser platform market Adviser platform assets – forecast by Fundscape 2023-28 CAGR £1,400bn 16% £1,200bn 11% £1,000bn £800bn 7% CAGR 8% 2018-2023 £600bn £400bn £200bn - 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Historical Pessimistic Realistic Optimistic Sou
Slide 19: Summary
i: IntegraFin Summary
Slide 20: IntegraFin is well placed for future growth
IntegraFin is well placed for future growth • A growing UK adviser platform market with significant investable Our Market assets still remaining off platform • Best in class proprietary technology provides control over Our Technology functionality and future platform development • Rated the UK’s #1
Slide 21: HY24 Summary
HY24 Summary Strong gross and resilient net inflows in current market conditions Continued attractive margins, supporting profitability and cash generation Costs continue to be carefully managed A Consumer Duty aligned platform focused on positive consumer outcomes Platform digitalisation
Slide 22: Q&A
Q&A 2: IntegraFin
Slide 23: Appendix 1 - IHP Group HY reporting
Appendix 1- IHP Group HY reporting £m HY24 HY23 Revenue 70.4 66.5 Cost of sales -1.6 -2.3 Gross profit 68.8 64.2 Operating expenses -41.0 -37.0 Non-underlying expenses -1.1 -1.5 Operating profit 26.7 25.7 Net interest income 5.1 2.2 Net gain attributable to policyholder returns 0.6 - Profit before t
Slide 24: Appendix 2 - We remain focused on our clear strategy and business model
Appendix 2- We remain focused on our clear strategy and business model Our aim is to be the number 1 provider of software and services for clients and UK financial advisers Our strategy is focused: • We make financial planning easier for clients and their UK financial advisers, with a Consumer Duty
Slide 25: Appendix 3 - Transact growth opportunity from substantial UK assets off platform
Appendix 3- Transact growth opportunity from substantial UK assets off platform Significant growth opportunities - with assets coming to advisers from: savings; consolidation of pensions and ISAs from other providers; inheritance; and, pension accumulation, including under the Government required pe
Slide 26: Appendix 4 - Increasing the number of registered advisers on Transact
Appendix 4- We continue to increase the number of registered advisers on Transact, whilst also gaining greater ‘share of adviser wallet’ There are c.35k registered financial advisers in the UK – we estimate c.13k is contestable 3,000 c.22k c.35k 36,000 36,000 UK registered financial advisers c.5.1k
Slide 27: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein