Last checked at 18 Apr 2023 07:00
LEI Number: 213800CYIZKXK9PQYE87
18 April 2023
IHP Group quarterly update - Q2 of financial year 2023
Group headlines:
· Ongoing strong flows in Q2 FY23, with net inflows to the Transact platform of £0.9bn, and gross inflows of £1.8bn.
· Record number of Transact platform clients of 228k at the end of Q2 FY23 (Q2 FY22: 218k).
· The average daily funds under direction (FUD) for Q2 of financial year 2023 was £53.8bn (Q2 FY22: £52.5bn).
· Total Group revenue is expected to be £66m for the first half of financial year 2023 (H1 FY22: £67m).
· Cost guidance for financial years ending 30 September 2023 and 30 September 2024 remains unchanged (as issued at our year end reporting in December 2022).
Transact platform:
· Total net inflows to the Transact platform for the first half of financial year 2023 of £1.6bn.
· During Q2 of financial year 2023 c.5.5k new clients were added to the Transact platform, and c.200 new advisers were registered.
· Additionally, during Q2, a review was undertaken of portfolios in accordance with regulatory requirements, for clients who had only small residual balances. This ongoing exercise will help improve operational efficiency. In this quarter it resulted in a reduction in client numbers of c.4.2k and also registered advisers of c.270.
· At the end of the quarter the total number of platform clients was 228k, and registered advisers was 7.6k.
£m |
Quarter ended 31 March 2023 |
Quarter ended 31 March 2022 |
H1 ended 31 March 2023 |
H1 ended 31 March 2022 |
Opening FUD | 52,063 | 54,539 | 50,070 | 52,112 |
Inflows | 1,825 | 2,092 | 3,294 | 4,068 |
Outflows | -900 | -697 | -1,669 | -1,385 |
Net flows | 925 | 1,395 | 1,625 | 2,683 |
Market movements | 994 | -2,376 | 2,313 | -1,169 |
Other movements(1) | -9 | -58 | -35 | -126 |
Closing FUD | 53,973 | 53,500 | 53,973 | 53,500 |
Average daily FUD for the period (£m) | 53,842 | 52,551 | 52,643 | 53,038 |
Number of registered advisers | 7,563 | 7,356 | 7,563 | 7,356 |
Number of platform clients | 228,232 | 218,787 | 228,232 | 218,787 |
Notes: (1) Includes fees, taxes and investment income.
Time4Advice:
· Total registered users of CURO software was 2.5k as at 31 March 2023 (10% higher than as at 30 September 2022).
Alex Scott, IHP Group Chief Executive Officer, commented:
"I am pleased to report another quarter of solid net inflows for the Transact platform, with net inflows of £0.9bn for the quarter and £1.6bn in total for the first half of financial year 2023. For the first half of the year this represents an annualised net flow rate of over 6% of opening period FUD.
The retention of clients and assets on the Transact platform remains very high. This is a result of the combination of high quality, personal, financial planning delivered by UK authorised advisers, and the service that Transact delivers for clients.
During this period of ongoing economic and market volatility, clients rely more than ever on their advisers. The recent UK budget also announced specific measures that will enable more saving into UK pensions. We therefore see the demand for high quality advice only continuing to grow, and we will continue to support UK advisers and capitalise on this market opportunity.
We continue to implement our platform digitalisation programme to deliver comprehensive online functionality for advisers and clients, as well as straight through processing for core internal administration activities. This means that our customer services staff will be able to spend more of their time on the most important value adding activities for advisers and clients.
Overall, we remain focused on our aim to be the number one provider of software and services for clients and UK financial advisers.
We look forward to reporting our results for the first half of financial year 2023 on 26 May 2023."
£m | Q3 FY21
| Q4 FY21
| Q1 FY22
| Q2 FY22
| Q3 FY22
| Q4 FY22
|
Q1 FY23 |
Q2 FY23 |
Opening FUD | 46,929 | 50,310 | 52,112 | 54,539 | 53,500 | 50,300 | 50,070 | 52,063 |
Inflows | 1,994 | 1,967 | 1,976 | 2,092 | 1,703 | 1,505 | 1,469 | 1,825 |
Outflows | -657 | -660 | -688 | -697 | -703 | -785 | -769 |
-900
|
Net flows | 1,337 | 1,307 | 1,288 | 1,395 | 1,000 | 720 | 700 | 925 |
Market movements | 2,112 | 553 | 1,207 | -2,376 | -4,152 | -927 | 1,319 | 994 |
Other movements(1) | -68 | -59 | -68 | -58 | -48 | -23 | -26 | -9 |
Closing FUD | 50,310 | 52,112 | 54,539 | 53,500 | 50,300 | 50,070 | 52,063 | 53,973 |
Average daily FUD for the period (£m)
| 48,677 | 51,647 | 53,514 | 52,551 | 51,889 | 52,217 | 51,470 | 53,842 |
Number of registered advisers | 7,056 | 7,161 | 7,278 | 7,356 | 7,469 | 7,537 | 7,632 | 7,563 |
Number of platform clients | 205,532 | 208,611 | 213,178 | 218,787 | 221,992 | 224,705 | 226,996 | 228,232 |
Transact platform historical information:
Notes:
(1)Includes fees, taxes and investment income.
Enquiries:
Investors |
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Luke Carrivick, IHP Head of Investor Relations | +44 020 7608 5463 | |
Media |
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Lansons: Tony Langham Lansons: Maddy Morgan-Williams | +44 (0)7979692287 +44 (0)7947364578 |
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