Investacc Group Limited · LSE:INAC
Investacc — FY2024 Earnings Presentation
30 slides from Investacc's earnings presentation, Apr 24, 2025
Slide 1: 31 December 2024 results & 2025 Q1 Update
31 December 2024 results & 2025 Q1 Update 24 April 2025 1
Slide 2: 1. Summary and Strategy Recap 2. December 2024 Results and Performance Review 3. Acquisition
1. Summary and Strategy Recap 2. December 2024 Results and Performance Review 3. Acquisition Update – AJ Bell 4. Q1 2025 Trading Update 5. Outlook 6. Summary and Key Priorities 7. Q&A 2
Slide 3: 1. Summary and Strategy Recap
1. Summary and Strategy Recap 3
Slide 4: The Market Opportunity
The Market Opportunity STRATEGY Building a leading specialist pension administrator with Attractive Opportunities for high-quality Fundamentals integrated business Consolidation and a focus on excellent customer outcomes 8% Organic Growth projected annually over the next 5 years Existing Fragmented
Slide 5: Executive Summary
Executive Summary 2024 pro forma results demonstrate excellent customer outcomes and strong financial performance H2 2024 Milestones Delivered Q1 2025 Delivery • InvestAcc Acquisition: FCA CiC granted • AJ Bell SIPP & SSAS Book: Acquisition exchanged • Equity Raise: Successfully closed • Kartesia Pa
Slide 6: 2. December 2024 Results and Performance Review
2. December 2024 Results and Performance Review 6
Slide 7: Financial and Operational Highlights
Financial and Operational Highlights Excellent 2024 Pro Forma Financials Balance Sheet Strength (31/12/24) • SIPP and SSAS customer growth: +18.0% • Regulatory capital coverage 295% • Revenue growth: +16.3% • Cash after minimum regulatory capital £11.0m • EBITDA growth: +15.7% • Deferred considerati
Slide 8: Pro Forma Performance
Pro Forma Performance1 • 16.3% increase in revenue driven by organic growth • 15.7% trading EBITDA growth • Trading EBITDA margin above 40% through operational excellence Notes: 1. Estimated, pro-forma data for calendar years 2023 calculated pro rata from audited InvestAcc accounts for 12 months to
Slide 9: Actual Results for 6 Months to December 2024
Actual Results for 6 Months to December 2024 • InvestAcc delivered £2.5m revenue and £0.9m EBITDA by year-end, in line with expectations • The period includes InvestAcc trading from 9 October and 6 months of group costs • Exceptional items relate to acquisition of InvestAcc Ltd 9
Slide 10: 3. Acquisition Update – AJ Bell Platinum
3. Acquisition Update – AJ Bell Platinum 10
Slide 11: AJ Bell Platinum
AJ Bell Platinum Product and customer base is aligned to InvestAcc to continue delivering exceptional customer outcomes An award-winning provider of SIPP and SSAS administration services, with long term customers and experienced colleagues2 2,666 £1.8bn £669k SIPP Customers SIPP AuA Average SIPP val
Slide 12: AJ Bell - Roadmap To Success
AJ Bell - Roadmap To Success Key Value Drivers • Customer retention and outcomes • Leveraging Carlisle infrastructure • Swift execution by experienced team Integration Playbook Re-build data Customer data records and grant validation BPA Exchange – Data extraction online access Completion – 27th Mar
Slide 13: AJ Bell - Financials
AJ Bell - Financials Consideration Structure of up to £25m: £m Cash Ordinary shares On completion 17.5 1.0 H1 2026 deferred consideration contingent on 6.5 - client migration success Maximum consideration 24.0 1.0 Acquisition costs Integration costs Annual revenue (per 12 mths to 30/09/24) Expected
Slide 14: Funding For Growth
Funding For Growth Capital Philosophy Senior Credit Facility Secured with Kartesia • Balanced use of debt and equity to support • Provides strategic flexibility for M&A execution M&A-led growth • Funds AJ Bell acquisition • Ambition to build a broad and diverse equity • Can provide additional fundin
Slide 15: 4. Q1 2025 Trading Update
& InvestAcc Group 4. Q1 2025 Trading Update
Slide 16: Q1 2025 Continued Momentum
Q1 2025 Continued Momentum Q1 Trading vs Q1 24 Corporate Activity • Total customer growth: 20.6% • AJ Bell • Revenue growth: 19.3% • Exchange of contracts • Integration playbook • Senior Credit Facility Secured with Kartesia Q1 Admin Platform Upgrade • CFO appointment • Successful upgrade to Platinu
Slide 17: 5. Outlook
& InvestAcc Group 5. Outlook
Slide 18: SIPPs: one of the most tax efficient retirement savings products
SIPPs: one of the most tax efficient retirement savings products Pension Life Cycle IHT Considerations 1. Set up a pension and start paying in Pensions are the most tax effective way to save for your retirement 2. Keep in mind tax allowances and reliefs We have seen no change in behaviour in InvestA
Slide 19: Creating a Group Treasury Function
Creating a Group Treasury Function Total return on cash deposits achievable through Treasury Function Consumer Duty Focused Design Higher interest rates for customers Margin retained by • Pooling deposits drives scale and ability to achieve rates InvestAcc that customers could not achieve Shared ben
Slide 20: M&A Pipeline
M&A Pipeline A pipeline of high quality acquisitions, deliverable over the next 3 years Compelling M&A Opportunity: InvestAcc A J Bell • Strong pipeline across specialist providers, life companies, and platforms Customers 12,000+ 3,500+ • Expertise, focus and momentum make us a Revenue £8.8m £10m EB
Slide 21: 6. Summary and Key Priorities
6. Summary and Key Priorities 21
Slide 22: Summary and Key Priorities
Summary and Key Priorities Summary Key Priorities InvestAcc InvestAcc • Positive performance and momentum in • Delivery of continued organic growth and our core trading business customer service excellence • Customer service excellence continues to • Build and implementation of a Treasury Function d
Slide 23: 7. Q&A
& InvestAcc Group 7. Q&A
Slide 24: Appendix
& InvestAcc Group Appendix 24
Slide 25: Long-Term Goal Starting Point
Founded in 2020 as Marwyn Acquisition Company II and renamed in October 2024, InvestAcc Group has the long-term goal to establish itself as a market leader offering tailored services, technology and products that meet the diverse intergenerational needs of customers and families. Long-Term Goal Star
Slide 26: Highly Experienced Management Team
Highly Experienced Management Team Mark Hodges | InvestAcc Group Chairman Knowledge, experience and track record in executing • Led multiple successful value-creation M&A transactions • Experience leading consolidation of the Pensions Sector Sale to Phoenix for CEO of Centrica’s £11bn CEO of £15bn a
Slide 27: Drivers for a Growing Market
Drivers for a Growing Market Our core vision is underpinned by four macro trends providing opportunity for the bespoke SIPP and SSAS market: 1 Ageing population 21m 30% Migration away from DB schemes and demographics people aged over 55 in Increase in the number leading to greater dependence on the
Slide 28: The Size of the Opportunity
The Size of the Opportunity The size of the opportunity has been Full SIPP Market Providers demonstrated through recent FCA analysis: Specialist Providers Providers : 27 £567bn £204bn Simple SIPP: invested solely Accounts : ~338k in shares and funds, £85k Total SIPP Operator assets Platform-based Fu
Slide 29: In 2024 we acquired InvestAcc Holdings Limited
In 2024 we acquired InvestAcc Holdings Limited Offering a scalable, highly reputable foundation from which to integrate acquisitions and deliver exceptional customer outcomes An award-winning provider of SIPP and SSAS administration services, Pension Administration Ltd working with financial adviser
Slide 30: Full year Pro Forma
Full 3 year Pro Forma1 Notes: 1. Estimated, pro-forma data for calendar years 2022 and 2023 calculated pro rata from audited InvestAcc accounts for 12 months to 31 October 2023 and 2024. Data for calendar 2024 based on actual, audited data for October to December, and pro rata data for January to Se