IntegraFin Holdings PLC

Good morning, and welcome to Integrafin Holdings' four-year results presentation for the financial year ended 30th September 2025. I'm Alex Scott, Group Chief Executive, and joining me today is our Group Chief Financial Officer, Ewan Marshall. I'm going to kick off with an overview of the group's performance and our business highlights from FY25. I'll then hand over to Ewan to run through the group's financial performance in the period and the outcomes of the group's cost and efficiency review. Finally, I'll close with an update on the performance of the Transact platform and a look at the good progress we've made on our key work streams throughout the year before moving on to Q&A. FY25 has been an excellent year for IHP. The group demonstrated continued strong performance and we delivered on our strategic priorities. We attracted impressive net inflows of £4.4 billion, driven by record gross inflows. Net inflows were up 76% on FY24, a reflection of the ongoing quality of the Transat platform and the technological enhancements we've made over recent years. On the back of these excellent inflows, the group delivered impressive financial results, with good growth in revenue and underlying earnings. Underlying earnings per share increased 7% in FY25 to 17.4 pence per share. As we first announced in July, we have undertaken a review of group-wide costs. We have now completed the review and we have identified clear opportunities to enhance productivity, and these initiatives are now underway. Looking forward, we have a clear focus on driving sustainable future earnings growth. I'm pleased to announce we've raised our total dividends for FY25 to 11.3 pence per share, up 9%. Our market-leading Transact platform is built on proprietary technology and supported by exceptional service. This business model is the driving force behind these results. Our strategy has delivered consistent client growth, a strong market share of both gross and net flows in the UK advisor market, and recognition through industry awards. We have invested in our proprietary technology and IT infrastructure to sustain our highly differentiated proposition and extend our market leadership. We now expect that in FY26 and FY27 there will be group underlying annual cost growth of around 3%, including ongoing technology investment. Therefore, we will deliver both group-wide cost savings and continued investment in our technology capabilities as we reduce average costs to serve platform client. The business is now in an excellent position to accelerate future earnings growth. Our main priority in the financial year has been enhancing the platform's features and online processes successfully. through digitalisation as well as broadening our ability to integrate with a wide range of advisor firm software. By streamlining key wealth management tasks, Transat remains the leading platform for financial advice firms. These enhancements drive higher inflows, strengthen client retention and increase the stickiness of assets on the platform. We also commenced our cost and efficiency programme, which has been made possible through our investment and will deliver a more streamlined operating model and greater efficiencies across the business in turn, increasing our operating margin. I'll now hand over to Ewan for a more in-depth look at the financials for the period and an explanation of how we'll deliver the cost and efficiency programme. Thanks, Alex.

Good morning, everyone. Firstly, I'm going to share an overview of our KPIs, which demonstrate the ongoing delivery of our strategic priorities is converting into strong operational and financial performance. As shown in the top left graph, average daily FUD has grown 14% year-on-year to £67.9 billion. Aside from the market's movements, this has been driven by record gross inflows of £10.1 billion for the period, whilst growth in gross outflows has slowed. A key driver has been our platform continuing to attract more business from our competitors, strengthening our net transfers. We have achieved an impressive 10% compound annual growth rate in average daily FUD since FY21. Now, looking at the top right graph, the growth in our average FUD has translated into revenues of £156.8 million for FY25, up 80% on FY24. I will discuss platform revenue in more detail on the next slide. The bottom left graph shows that this record revenue has driven group underlying profit before tax up 7% to £75.4 million and equates to an underlying profit margin of 48%. Non-underlying expenses totaled £9.2 million in FY25. This included a £7.5 million impairment of goodwill relating to T4A, which was announced at the half-year, and £1.1 million of overlapping rental costs for our new head office relocation. We have also recognised a £3.4 million non-underlying gain attributable to policyholder returns as a result of a release of £3.4 million policyholder reserves to the P&L. Moving on to the bottom right graph, the group delivered strong growth in underlying EPS, up 7% on FY24 to £17.4 per share. For FY25, we have increased the second interim dividend to £0.08 per share, taking the total FY25 dividend to £11.3 per share, a 9% increase on FY24. Looking in more detail at Transact platform revenue for FY25, we can see investment platform revenue increased by £11.8 million in the year, representing 97% of group revenue. Growth in average daily FUDs during the year drove increased platform revenue, with our annual charge income increasing 10% to £138.1 million. The lower increase in annual charge income in comparison to average FUD is mainly a result of clients benefiting from the natural progression through our tiered pricing structure as the value of their portfolio increases. Wrapper fee income decreased slightly year-on-year and reflects the reduction in charges for family-linked portfolios. These two recurring revenue streams combine to deliver 99% of total platform revenue. we continue not to retain any interest on client cash. In FY25, total T4A revenue increased slightly to £5 million. Focusing next on platform revenue margin. The graph highlights how platform revenue margin has moderated steadily in the past, but this attrition is now expected to slow in FY26. Over time, our revenue margin has seen a measured decline as we've strategically invested in price through targeted fee reductions. These changes contribute to the strength of the overall platform proposition, which in turn have helped to attract new flows and improve the retention of client assets on the platform. Looking forward, we expect the reduction in revenue margin to come primarily as a result from the natural progression of client portfolios through our tiered pricing structure and the annualisation of the prior year's targeted price reductions. As an indicative figure, the platform revenue margin for September 2025, the last month of FY25, was 21.9 basis points. I'll now share more detail on our costs. starting with how we have carefully managed our administrative expenses in FY25. In line with guidance, total underlying administrative expenses were 9% higher than in FY24. Employee costs make up the largest proportion of our cost base and rose 11% in the year. This was because of several factors. Firstly, a slight increase in average staff headcount of 2%. Secondly, the impact of investment in broadening the senior management team. And finally, our periodic review of remuneration packages across the business to ensure that we continue to provide competitive salaries to attract and retain high quality individuals within the business. Before looking in detail at the cost review programme announced in July, it is important to contextualise the previous investment we have made in the group. During the heightened investment phase over recent periods, we have enhanced the group's IT infrastructure and technology capabilities to deliver improved platform digitalisation and provide a greater number of integrations with third-party software providers. A further key factor has been our investment in people. As I have just mentioned, we have broadened our senior management team over the past two years, expanding the expertise and quality of our people across the business. This investment in our technology and people will enable us to deliver future cost efficiencies and reduce our cost to serve per platform client. Moving on from the cost growth in FY25, I will now expand on the outcomes of the cost review programme, which will help deliver enduring efficiencies in the coming years. We have completed a detailed assessment of our cost drivers and identified three key areas for sustainable cost savings that will create a more efficient business. Firstly, the greatest savings identified will come from improved productivity in our internal support functions. We're introducing more third-party technology which will automate many manual processes for staff across the business. We're also changing the structure of some of those functions to simplify and standardise how we do things, improving productivity so that we can maximise the value of the strong foundations that we've already put in place. The second source of savings will come from enhancing procurement and supplier management processes. The final element will be from enhanced platform efficiencies. Our ongoing focus on increasing the level of straight-through processing and automation is reducing manual tasks and processing times, which Alex will discuss in more detail later in the presentation. We expect the cost review programme to deliver £4 million of annualised savings by FY27. The strength of this review is in the sustainable, ongoing nature of the savings. FY26 and FY27 total underlying administrative expenses are expected to grow at around 3% per year. Delivering these changes will not come at the expense of our client service or our technology. Our proprietary technology is a key differentiator in the UK advisor platform market and through focused investment we will continue to improve our proposition while implementing our cost efficiencies. Note that the anticipated one-off costs required to achieve the savings are included in the investment spend on this slide. Due to the timing of cost savings coming through, we anticipate cost reduction in the speed of cost increases to be weighted towards the second half of this year, meaning that H1 and H2 costs will be broadly similar. These actions put us on a clear path to long-term profitable growth while creating a more focused and resilient business for the future. Moving on to the next slide, I wanted to highlight the three core levers on which we're focused to drive earnings growth. Firstly, we've invested significantly in a business over the last few years. We believe this investment has been fundamental to improving our prominent position in a competitive market. This investment has now put us in a position where we can focus on margin delivery. We expect our market-leading platform to continue to drive strong net inflows in a growing UK advisor platform market. The second and third levers, our focus on revenue margin and our cost review, leave us in a position to accelerate earnings growth and enhance shareholder value in future years. We're focused on the platform revenue margin with attrition in FY26 being due to the impact of our tiered pricing structure and the analysation of prior year price changes. Our group-wide cost review has identified productivity opportunities within the business and will reduce the rate of future underlying cost growth. We're confident in our strategy and business plan moving forward. Returning to our FY25 financial position, The business continues to be highly cash generative with the majority of profit flowing through into cash. This positions as strongly for the future as we expect our group profit margin to increase. The left hand table illustrates 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. As a reminder, we maintain a liquidity buffer to ensure we have the ability to accommodate ongoing increases to capital requirements in our regulated entities and can continue to invest in the business, all whilst continuing to pay dividends to our shareholders. We remain confident this is the right level to help support the future requirements of the group. I'm pleased to say that we have approved a total dividend for the year of 11.3 pence per share, a 9% increase on FY24, representing 65% of the total underlying profit after tax. As mentioned on the last slide, we've approved a dividend of 11.3 pence per share this year as part of our capital allocation framework. For reference, our capital allocation framework is shown here on the slide. Finally, I'll talk you through the group's guidance for FY26 and FY27. We're focused on managing platform revenue margin. We expect the reduction in the platform revenue margin to slow, driven by clients moving through the tiered price charging structure and the impact of prior year price changes. As I mentioned earlier, our platform revenue margin was 21.9 basis points in September. As I highlighted on our cost slides, we expect total underlying administrative expenses to grow at 3% per year in FY26 and FY27. Net interest income is expected to be around 9% per year and the net gain attributable to policyholder returns are expected to be in the region of £2 million per year. That concludes my part of the presentation. I'll now hand back to Alex.

Thanks, Ewan. In this section, I'll provide an update on the Transact proposition enhancements that we've delivered and a more in-depth look at the Transact platform flow performance during the period. We've delivered significant enhancements to the Transact platform, leading to growth of client numbers and inflows and a strengthening of our marketing position. These digital upgrades have streamlined platform operations by reducing manual and paper-based processes, both for us and for advice firms. This has improved operational efficiency and elevated service levels across the platform. The movement of paper forms to online straight-through processing reflects our purpose – to make financial planning easier. We have focused the transition on processes with the highest rates of human intervention. With standardised formats and instant data validation, we now receive clean instructions. Digitalisation was a key step to further developing Transact platform integrations and APIs. With improved accuracy and greater data validation, Advisors can now send instructions directly from their back-office systems and we can trust the data being supplied. This is particularly important for the future use of AI. For the group, this means faster processing times, greater scalability of the platform and the ability for our client-facing teams to respond quicker to client needs. During FY25, the Transact platform delivered record gross inflows and impressive net inflows. Total net inflows for the year were £4.4 billion, up 76% on the prior year. Our excellent net inflow performance has been driven by record levels of gross inflows with seven consecutive quarters above £2 billion. This is a testament to the market-leading service we provide and the digital enhancements we have made to our proposition. We have also improved our net transfer ratio with other platforms as we continue to win more business from competitors, with our transfer ratio improving to 2.8 in FY25. We have also taken an impressive share of net inflows to the UK advisor platform market, which I'll cover in more detail on the next slide. And finally, outflows were largely stable during the year and reduced as a percentage of opening FUD to 9% in FY25. Our impressive net inflows performance in FY25 means we continue to have a strong market share of the net flows into the UK advisor platform market. This is a further reflection of the quality of our proposition as we continue to increase our market share of FUD and maintain an over 20% share of net inflows. We have a 10% share of the UK advisor platform market FUD and the external market review company, Fundscape, expects the advisor platform market to continue to grow at an impressive rate of around 12% over the next five years. I'm pleased to say the Transat platform continues to win industry awards, picking up the Schroeder's Best Use of Platform Technology and the Money Marketing Best Platform Award this year. Our market-leading service continues to drive growth in client numbers using the platform, and our long-term track record in client growth is displayed in the middle chart. This growth in client numbers in turn ensures a durable and growing source of inflows to the platform, as illustrated on the right-hand side. So to summarise, in FY25 we've delivered record growth and strong net inflows in a growing UK advisor platform market. We're confident of demonstrating good net flows momentum into future years. The award-winning Transact platform continues to enhance its proposition through digital enhancements and an expanding range of APIs. We have begun implementing the initiatives from the group-wide cost review. This will help to enhance business efficiency and drive operating margin growth. And to conclude, we have a very scalable platform and best-in-class proposition centred on our proprietary technology and high levels of client service. We're focused on growing revenue and delivering savings from our cost and efficiency programme. Overall, this positions us well to drive sustainable earnings growth in future years. Thank you for your time and we'll now open to questions.