Integrafin Holdings Plc · LSE:IHP
Integrafin — H1 FY2018 Earnings Presentation
19 slides from Integrafin's earnings presentation, 2018
Slide 1: Results Presentation Half Year Ended 31 March 2018
Results Presentation Half Year Ended 31 March 2018
Slide 2: Presentation team
Presentation team Ian Taylor Alex Scott Chief Executive Finance Director • Co-founded IntegraFin in 1999 • Joined IntegraFin in 2009 • 1992 – Seven years in asset • 1997 – Twelve years in insurance management licence provision • 1987 – Five years in life industry • 1991 – Six years in life industry
Slide 3: Agenda
Agenda • Overview of IntegraFin • Financial results • Summary Results Presentation HY 31 March 18 3
Slide 4: A leading independent platform
A leading independent platform • Transact is the UK’s leading independent B2B platform with £29.8bn of Funds Under Direction at Mar ’18 • Offers premium service to clients and financial advisers with complex needs • Operates in a large and growing market • Controls the full platform offering and own
Slide 5: What we do
What we do Transact’s Proposition Transact provides its clients and financial advisers with: 159k Clients Financial planning & advice • a complete financial planning Advice fees Statements infrastructure 5k Advisers Platform Instant portfolio 3k Adviser Firms fees valuations • an efficient solution
Slide 6: Transact's premium service offering
Transact’s premium service offering Transact’s differentiated and premium offering is underpinned by its high-touch client service team and proprietary technology platform High-touch client service team Proprietary technology platform • Highly-trained team of circa 190 client service staff • Compreh
Slide 7: Strategy
Strategy • Remain focused: • UK only • Intermediary only • Maintain high service standards • Reinvest in business: • Continue to enhance online functionality • Continue to enhance proposition by adding new financial planning components for advisers • Control expenses • Continue to grow inflows • Min
Slide 8: Key messages
Key messages Best ever six monthly inflows Gross and net inflows have increased and FUD is up 6.5% since Sep ’17 Total fee income £44.6m, up 15% compared to H1 FY17 Adjusted operating profit £21.2m, up 23% compared to H1 FY17 Adjusted operating profit margin increased to 48% from 45% in H1 FY17 Prof
Slide 9: Impressive FUD growth
Impressive FUD growth Growth in Funds Under Direction (£bn)(1) compared to the MSCI World Index 2007 First dividend 2,500 2003 paid yearly 29.8 Transact thereafter 27.9 moves into operational profit during 2,000 2000 2003 • Transact has enjoyed FUD First assets 22.7 growth every year since MSCI Worl
Slide 10: Highest ever Q1 & Q2 inflows
Highest ever Q1 & Q2 inflows £1.8bn £m H1 FY18 £1.6bn £1.54bn Opening FUD 27,927 £1.45bn £1.46bn £1.41bn £1.39bn £1.4bn Inflows 3,007 £1.2bn £1.10bn £1.07bn £1.06bn £1.00bn £1.04bn Outflows (840) £1.0bn £0.93bn Net inflows 2,167 £0.8bn £0.69bn Market £0.6bn (319) movements £0.4bn Other (22) movement
Slide 11: Total fee income up 15%
Total fee income up 15% 96% of total fee income is recurring H1 FY18 H1 FY17 Change £m £m Annual Fee Annual basis point charge levied on 38.8 33.5 +16% Income assets and cash held on the platform (87%) (87%) Wrapper Fee Annual fixed fee levied on all Transact 3.9 3.5 +11% Income wrappers (9%) (9%) B
Slide 12: Expenses were higher mainly due to one-off IPO related costs
Expenses were higher mainly due to one-off IPO related costs £m H1 FY18 H1 FY17 Staff costs 17.2 (1) 15.2 Occupancy 1.6 1.8 Regulatory and professional fees 4.5 2.2 Other costs 2.1 1.8 Total expenses 25.4 21.0 Depreciation and amortisation 0.3 0.3 (3) Total operating expenses 25.7 (2) 21.3 (1) Of wh
Slide 13: P&L and cash flows
P&L and cash flows Profit & Loss Cash Flows £m H1 FY18 H1 FY17 £m H1 FY18 H1 FY17 FUD (£bn) 29.8 25.5 Adjusted Operating Profit 21.2 17.3 Adjustments (2.7) (0.1) Total Fee Income 44.6 38.7 Adjusted Operating Profit 18.5 17.2 (incl. exceptionals) Cost of Sales (0.4) (0.2) Depreciation & Amortisation
Slide 14: We continue to achieve strong profit growth while also reducing fees
We continue to achieve strong profit growth while also reducing fees CAGR(4): 10% £80.2m £59.5m £63.6m £68.4m +15% • Transact has an impressive record of consistently £55.5m growing both Revenue and Operating Profit Income(1) Total Fee HY £44.6m £38.7m • Given its scale and operating leverage, Trans
Slide 15: Group balance sheet remains strong
Group balance sheet remains strong 31 March ‘18 £m Non-current assets Loans and receivables 3.7 • Transact operates with a conservative balance Intangible assets 13.0 Property, plant and equipment 1.9 sheet position: Deferred acquisition costs 42.4 Investments and cash held for the benefit of 12,877
Slide 16: Summary: Transact enjoys a strong growth profile
Summary: Transact enjoys a strong growth profile Growth in UK Wealth Market Industry Drivers Growth in assets managed by financial advisers Growth in wealth managed by current advisers Increasing penetration of current advisers Penetration Market New advisers joining Transact Strong growth profile f
Slide 17: 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
Slide 18: Appendices
Appendices Results Presentation HY 31 March 18 18
Slide 19: Appendix – Key players in the B2B platform market
Appendix 1 – Key players in the B2B platform market UK Large B2B Platforms • Transact is unique amongst the Technology large B2B platforms due to its: Adviser Rating(1) Ownership FUD(2) Provider 8.5 Independent Proprietary £30bn • Independence 7.8 IFG Group Proprietary £26bn • Proprietary technology
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