IntegraFin reports highest ever gross inflows

(Sharecast News) - IntegraFin reported a 13% improvement in its first-half revenue on Thursday, to £53.8m, while its profit before tax was up 21.9% to £27.3m.
The FTSE 250 company said its earnings per share were 23.6% higher year-on-year in the six months ended 31 March, to 6.8p, while the board hiked its interim dividend to 2.7p per share, from 2.6p a year earlier.

Funds under direction were up 1.7% at £34.99bn, with gross inflows 14% higher at £3.2bn and client numbers growing by 8.1% to 187,000.

"Results for the first half of the year are positive," said chief executive officer Alex Scott, adding that the company saw its highest ever gross inflows and record first half year profits.

"Strong inflow growth has contributed to a year on year increase in funds under direction, despite the Covid-19 pandemic causing substantial, downward movements in world equity markets from late February.

"Prior to these market falls, funds under direction growth had been solid.

"The growth in net flows and higher daily average funds under direction over the period [at] £38.3bn have driven strong revenue growth."

That, coupled with "sensible" expense management, enabled the firm to deliver an increase in profit before tax, Scott explained.

"Performance in the second half of the year will very much depend upon the effects of measures taken to combat Covid-19, and their impact upon the economy, the equity markets, funds under direction and flows.

"Against this backdrop, the business continues to be well positioned.

"The number of clients on the platform increased from 173,000 to 187,000 year-on-year, an increase of 8.1%."

At the same time, Scott noted that the number of advisers using the platform increased by 6.3%.

"The welfare of our staff and the maintenance of services to clients are, of course, my primary concerns.

"All staff are currently working from home, from where they continue to do a fantastic job, providing as good a quality service as possible to clients and their advisers.

"We are not utilising any schemes under the National Temporary Framework for State Aid and none of our staff have been furloughed."

Scott said that after "careful consideration", the board declared a first interim dividend in accordance with its policy.

At 1120 BST, shares in IntegraFin Holdings were down 0.3% at 496p.