Annual profits, revenues jump at IntegraFin

(Sharecast News) - Shares in IntegraFin Holdings sparked on Wednesday, after it posted a jump in annual revenues and profits on Wednesday, despite a volatile first half. The owner of investment platform Transact saw revenues rise 8% in the 12 months to 30 September, to £156.8m, while underlying pre-tax profits rose 7% at £75.4m. Net inflows to Transact were £4.4bn as at 30 September, a 76% hike year-on-year. Closing funds under direction rose 16% to £74.2bn.

The London-listed firm said the first half had started with "significant uncertainty", due to the upcoming 2024 Budget and market fluctuations following the US election.

However, it still saw "record" quarterly gross inflows for both the first and second quarters, driven by strength in one-off deposits and transfers from competitors.

Chief executive Alex Scott said: "Our ability to confidently deliver growth in ever-changing economic circumstances is down to our key sources of competitive advantage: our proprietary technology and industry-leading personal customer service."

Looking ahead to the current year, IntegraFin said: "In the lead-up to the Budget in November, Transact experiences heightened inflows and outflow activity, mainly relating to pension wrappers.

"Since the Budget, flows momentum has reverted to trend, and we expect net inflations for the first quarter of to be comparable with prior year."

It also confirmed a group-wide cost review had been carried out, and that it was now implementing efficiencies in both support and operational functions.

"We expect this to drive business efficiencies and productivity enhancements," it noted. "The combination of the revenue growth fundamentals and the implementation of the cost review positions the group well to accelerate earnings growth in the coming years."

As at 0830 GMT, the stock was up 3% at 346.48p, having come off earlier highs.