IntegraFin Holdings (IHP) H2 2024 earnings summary

Executive summary

• Achieved record Funds Under Direction (FUD) of £64.1bn, up 17% year-over-year, with strong net inflows of £2.5bn, reflecting advisor trust and platform functionality despite UK macroeconomic challenges.

• Underlying profit before tax rose 12% to £70.6m, with a 49% margin and a debt-free balance sheet.

• Delivered record revenues of £144.9m, with growth in clients and advisors despite closure of small portfolios.

• Declared a total dividend of 10.4p per share for FY24, in line with policy to pay 60–65% of profit after tax.

• Awarded Best Platform Provider (AUM over £40bn) and Best Platform for Discretionary Investment Management at the Schroders Platform Awards 2024.

Financial highlights

• Group revenue grew 7% to £144.9m year-over-year; recurring revenue accounted for 99% of total.

• Average FUD grew 11% year-over-year to £59.6bn, with an 11% CAGR since FY20.

• Underlying EPS grew 7%, impacted by higher UK corporation tax.

• Surplus cash and UK gilts stood at £32.1m at year-end.

• Platform revenue margin moderated due to targeted price reductions and FUD growth.

Outlook and guidance

• FY25 will see targeted price reductions, including pension wrapper fee changes and lower non-advised client charges, with an estimated annualised cost of £3m.

• Platform revenue margin expected to continue moderating in FY25.

• Administrative expenses forecast to rise 9% in FY25 (excluding a £2m one-off office move), then moderate to low/mid single-digit growth in FY26.

• Positive fundamentals expected to support ongoing growth in the UK adviser platform market.