IntegraFin Holdings PLC

Good morning and welcome to the interim results presentation for Integrity and Holdings for the six-month period ended 31st of March 2025. I'm Alex Scott, Group Chief Executive, and joining me here today is our Group Chief Financial Officer, Ewan Marshall. I'm going to kick off with an overview of the Group's highlights during the last six months. I will then hand over to Ewan to run you through the Group's financial performance in the period. Finally, I'll close with an update on the Transact platform and a strategic update on Time for Advice before moving on to Q&A. The Group's platform business continued to demonstrate strong performance in attracting flows, driven by our market-leading proposition. We delivered net inflows of £2.1 billion in the half-year of 2025, up 91% from the prior year comparison. Our consistently high standards of client service help Transact achieve the highest net promoter score for overall user satisfaction in the 2025 Investment Trends Platform Survey. We are particularly pleased to achieve this high net performer score as it is voted on by advisors and it underlines our commitment to delivering excellent client service. We also delivered strong growth in the group's underlying financial performance, with underlying profit before tax in the half year up 13% on the prior half year. Furthermore, average daily funds under direction also recorded record highs in the period. Underpinning these impressive results is our consistent delivery of positive client outcomes, and of course we don't retain any interest on client cash, paying this all onto our clients in full. Our established business model continued to drive growth in FUD and clients over the course of the period, with client numbers up 4% year-on-year. Record group revenue as well as cost management helped increase the group's underlying profit margin to 49%. This was delivered alongside investment in further digitalisation upgrades to the Transact platform. We continue to deliver strong cash flows and maintain a debt-free balance sheet. We have declared a first interim dividend of 3.3 pence per share.

I'm now going to hand over to Ewan for a more in-depth look at the financials. Thanks, Alex.

Moving to the financials for the period. As you can see in the top left graph, average daily FUD has grown 16% year-on-year to £66.3 billion, driven by both record gross inflows for the period and positive market movements since last year. We have achieved an impressive 12% compound annual growth rate in average daily FUD since HY20. Now, if we look across to the top right graph, the growth in our average FUD has translated into revenue of £77.2 million for HY25, an increase of 10% from HY24. Our group revenue has continued to grow over the years, whilst in parallel we have continued to share the benefits of scale with our clients by providing them with targeted price cuts. The bottom left graph shows that record revenue has driven group underlying profit before tax up 13% to £37.9 million. Even with the planned cost increases over recent years, which have continued to enhance our client proposition, it is pleasing to see our underlying profit margin expand. As displayed in the bottom right graph, the group delivers a consistent dividend. For HY25, we have increased the first interim dividend to 3.3 pence per share. The group delivered strong growth in underlying EPS, up 14% in comparison to H1 2024. Moving on to revenue for the period. HY25 platform revenue increased by £6.7 million and represented 97% of group revenue. Growth in average daily FUD during the period drove increased platform revenues, with our annual charge income increasing 10% to £67.3 million. The lower increase in annual charge income in comparison to average FUD resulted in a reduction in the blended annual charge rate payable by clients. This naturally occurs as a result of a greater proportion of individual client FUD benefiting from progressively lower fees in our tiered pricing structure as client portfolios increase in value. Wrapper fee income increased 6% year-on-year. That reflects increase in open wrappers on the platform and the continued growth of client numbers. These two recurring revenue streams combine to deliver 99% of total platform revenue. We continue to not retain any interest on client cash. As you will be able to see in our interim accounts, total T4A revenue has increased modestly to £2.5 million for HY25 and delivered consistent recurring licence fee revenue of £2.3 million. Moving on to our underlying administrative expenses for the period. In HY25, we manage costs in line with guidance, with total underlying administrative expenses being 9% higher than in HY24. Employee costs make up the largest proportion of the overall cost base, and these rose 10% in the year because of two factors. Firstly, a slight increase in average staff headcount, and secondly, an enhancement of remuneration packages to ensure we continue to provide competitive salaries to attract and retain high-quality individuals within the business. Moving on to slide 9. As illustrated on this slide, our revenue margin has moderated steadily, primarily as a result of our ongoing price cuts as we share our success and growing scale with advisors and clients. The platform revenue margin also moderates marginally as platform FUD grows. As I described a couple of slides ago, as client portfolio values increase, FUD enters lower fee bands, reducing the blended annual charge rate. Overall, this demonstrates our standing as a premium platform offering which is provided at a competitive price while also increasing our profitability. Moving on to slide 10, the table on your left demonstrates the group's strong liquidity position. Each of the group's regulated entities maintain a capital and liquidity buffer above the minimum levels required under various regulations. Surplus cash and gilts was £41 million as at 31 March. I'm pleased to say we have approved a first interim dividend for the year of 3.3 pence per share, a 3% increase on the first interim payment made last year. Finally, moving on to guidance. Our guidance for FY25, which we gave in December at the FY24 results, remains unchanged. Global equity markets adversely impacted FUD in the month of April. Average daily FUD for the month was £64.4 billion. However, FUD as at 30th April 2025 was £65.8 billion, down by only 0.2% from the quarter end. Alongside the ongoing recovery in global equity indices, FUD has continued to improve as May has progressed. Importantly, the market turbulence has had a negligible impact on our flows and we have continued our good momentum. In the HY25 accounts, we have recognised a £7.5 million impairment to the goodwill and intangible assets held in relation to T4A. This is treated as a non-underlying expense and has no cash impact on the group. The impairment is purely an accounting treatment, and we believe T4A's QRO proposition remains of strategic importance to the group, which Alex will discuss in more detail shortly. Looking beyond FY25, we remain confident of the group's competitive position, which is complemented by continuing growth in the UK wealth market. And with that, I'll hand back to Alex.