IntegraFin Holdings PLC

As you know, I'm Alex Scott. I'm Group CEO of Integrafin, and with me today I have Ewan Marshall, our Group Chief Financial Officer. I'm going to kick off with an overview of highlights from the Group's financial year, and then I'll hand over to Ewan to run you through the Group's financial performance in the period. Then I'll give an update on the Transat platform performance and our strategic progress before moving to Q&A. We're very pleased that the Transat platform finished the year with record high levels of funds under direction, FUD, aided by strong net inflows onto the platform of £2.5 billion, as advisors continue to deepen their trust in our market-leading client service and platform functionality. We delivered record year revenues of £144.9 million, helped by the strong growth in daily average FUD during the period. The excellent performance by our staff in delivering our services and our platform functionality have been consistently recognised over the year, with Transac bringing home the Schroders Awards for Best Large Platform and Best Platform for Discretionary Investment Management. Delivering positive client outcomes has always been at the forefront of what we do across the business, and we've continued to pass to clients all of the interest earned on their cash balances. Our established business model continued to drive growth in FUD clients and advisors over the course of the financial year. Advisor numbers were up 5% and client numbers up 2% despite us continuing to close very small portfolio portfolios during those 12 months. The record levels of group revenue drove underlying profit before tax up 12% and increased our underlying profit margin to 49%, even with our previously guided investment in the group's software development and IT infrastructure. We continue to deliver strong cash flows and have a debt-free balance sheet, and we've declared a total dividend of £10.4 per share for the financial year 2024. At this point, I'm going to hand over to Ewan.

Thanks, Alex.

Moving to the financials for the period, the top left graph shows average funds under direction, which has grown 11% year-on-year to £59.6 billion, at an impressive 11% compound annual growth rate since FY20, buoyed by our ongoing strength in net inflows performance and also assisted by positive market movements. Looking across to the top right graph, The growth in our average FUD has translated into revenues of £144.9 million for FY24, an increase of 7% from FY23. Our group revenues have continued to grow over the years by a compound annual growth rate of 8% whilst in parallel sharing the benefits of scale with our clients by providing them with targeted price cuts. The bottom left graph shows that these record revenues have driven group underlying profit before tax up 12% to £70.6 million. Underlying profit before tax performance for the year has also been helped by an increase in net interest income earned on corporate cash. As displayed on the bottom right graph, the group delivers a consistent dividend and we have increased the total dividend this year to 10.4 pence per share. The group has shown underlying EPS 7% growth over the year at a lower rate than pre-tax profits due to the full annual impact of the change in UK corporation tax. But considering group revenue in more depth, we can see in the top graph that platform revenue represents 97% of total group revenue. Growth in average daily FUDs during the year drove increased platform revenues, with our annual charge revenue increasing 9% to £126.1 million. Wrapper fee income increased 4% on the year, and that reflects the increase in open wrappers on the platform and the continued underlying growth of client numbers. These two recurring revenue streams combine to deliver 99% of total platform revenue. Other income continues to reduce as we fully removed by commission midway through FY24, following the earlier reduction in FY23. Also note, the group does not generate any revenue from retaining interest on client cash. As you'll see in the lower half of the slide, Time for Advice has seen healthy growth in the number of licence fee paying users, with the corresponding revenue also up 10%. Although total T4A revenue has increased modestly, we're pleased to see that the income from recurring licence fees has become a larger proportion of T4A's revenue year on year. Moving on to our administrative expenses for the year. In FY24, we managed costs in line with our guidance and therefore total underlying administrative expenses rose 11% over the year. Employee costs make up the largest proportion of the overall cost base and these rose 9% in the year because of two factors. Firstly, an increase in average staff headcount in the year and secondly, an enhancement of staff salaries to reflect the inflationary environment and to ensure we provide competitive salaries to attract and retain high quality individuals within the business. Other costs increased due to a number of factors, but predominantly due to the increase in irrecoverable VAT and the removal of tax relief due to shareholders from administrative expenses, which we disclosed at the half year. Moving on to slide nine, you will see the steady moderation of revenue margin over the years. The platform revenue margin reduced over the last year for two main reasons. Firstly, because of targeted price reductions consistent with our group pricing strategy. Secondly, due to platform revenue margin moderating marginally as platform FUD grows. This occurs when client portfolio values increase and therefore the additional portfolio value can move into lower charging bands. Overall, this demonstrates our standing as a premium platform offering at a competitive price. In the table on your left is the group's liquidity position. You'll see a surplus of £32 million at the year end after making deductions for regulatory and operational requirements, along with other cash encumbrances. I'm also pleased to say we have approved a second interim dividend of 7.2 pence per share, resulting in a total dividend for the year of 10.4 pence per share, representing 63% of total underlying profit after tax. Finally, I'll talk you through the group's guidance for the new financial year. I'll talk through revenue first. Consistent with the group's pricing strategy and sharing the benefits of scale with our clients, we will be making two targeted price cuts that will take effect in FY25. Firstly, the platform will now charge one wrapper fee per pension type in family-linked portfolios, taking effect from 1st April 2025. The annualised impact on revenue is expected to be a reduction of around £2 million. The second will be a reduction in the charges applied to non-advised client portfolios, taking effect from 1 January 2025 at an annualised cost of around £1 million. These changes will aid the retention of assets on the platform, including intergenerational wealth planning, whilst ensuring that we continue to attract a strong market share of advisor platform flows. We expect the platform revenue margin to continue to moderate in FY25 to reflect the impact of these price changes as well as the ongoing marginal impact of revenue margin as platform FUD grows. Moving on to costs. We expect total administrative expenses to increase by 9% in FY25. This excludes a £2 million one-off cost to move to a new London office in 2025. The cost increase in FY25 is also driven by the full-year impact of the staff headcount increase in FY24. Finally, in FY26, we expect total administrative expenses to moderate and therefore to grow by low to mid single-digit percentages. And with that, I'll now hand back to Alex.