IntegraFin pre-tax profit rises amid equity market volatility

(Sharecast News) - IntegraFin reported a 13% increase in underlying pre-tax profit to £37.9m for the six months ended 31 March on Wednesday, as strong net flows and higher funds under direction supported growth on its Transact investment platform. Group revenue rose 10% year-on-year to £77.2m, driven by an 8% rise in average daily funds under direction, which closed the half at £65.9bn.

Net inflows reached £2.1bn, nearly double the level seen in the same period last year, and the client base grew 4% to a record 241,100.

Underlying diluted earnings per share rose 14% to 8.8p, although reported diluted earnings per share fell 15% to 6.3p due to a £7.5m non-cash writedown of goodwill and intangibles related to the T4A acquisition.

Reported pre-tax profit declined 8% to £29.8m.

The FTSE 250 company's board declared an interim dividend of 3.3p per share, up from 3.2p a year earlier, in line with policy.

While equity market volatility in April weighed on average daily funds, the company said flows remained resilient and that funds under direction improved in May alongside market conditions.

IntegraFin maintained its full-year and longer-term cost guidance, with non-underlying office relocation costs of £2m to be recognised in the second half.

The company said its strong service proposition and ongoing platform digitalisation continued to support growth and adviser engagement.

"It has been a strong start to the year with substantial growth across our key financial metrics, increasing revenue by 10% and underlying profit before tax by 13%," said group chief executive officer Alexander Scott.

"Our diligent approach to client service and regular enhancements to the Transact platform's proprietary technology, remain key to our competitive position.

"Continuing our momentum from the previous year, the first half of 2025 has seen record levels of gross inflows and strong net flow performance."

Scott said the company was "particularly pleased" to have exceeded its net flow performance by 91% year on year.

"We continue to focus on developing the Transact platform to deliver meaningful efficiencies for advice firms, helping to drive client growth and net flows.

"The roll-out of the next generation CURO on Power Platform back-office software is progressing well.

"Developing an integrated digital ecosystem for financial advice firms is a key component of our strategy for attracting flows to Transact."

Despite the global uncertainty impacting equity markets in recent months, Alexander Scott said the company was confident that its platform proposition and the secular trends affecting the UK savings and investment market remained "very favourable", with that being illustrated through its strong new business flows in the second quarter.

"In March, we also marked the 25th anniversary of the first assets being placed on the Transact platform.

"In that time, our client-centric approach and focus on innovation have driven us to become a leading provider and operator in the sector.

"This milestone is an opportunity to reflect and to continue to focus on our strategy: to deliver leading financial adviser software, personal service and value for money."

At 1107 BST, shares in IntegraFin Holdings were down 3.36% at 316.5p.

Reporting by Josh White for Sharecast.com.