IntegraFin (LON:IHP) reported stronger first-half earnings and inflows for the six months ended March 31, 2026, as executives said the Transact platform continued to benefit from adviser demand, operational efficiency initiatives and growth in the U.K. adviser platform market.
Alex Scott, Group CEO, said the company delivered “a step change in profitability” during the period, with platform flows and funds under direction supported by Transact’s combination of proprietary technology and personal service. The company said average daily funds under direction rose 17% year over year to GBP 77.5 billion, while gross inflows reached a record GBP 6 billion and net inflows rose 14% to GBP 2.4 billion.
Revenue and profit rise as margins expand
Euan Marshall, Group CFO, said Group revenue increased 11% year over year to GBP 85.8 million. Investment platform revenue rose GBP 8.5 million, or 11%, to GBP 83.2 million, with annual charge income up 14% to GBP 76.4 million. Marshall said annual charge income grew less quickly than average funds under direction primarily because clients benefit from moving through Transact’s tiered pricing structure as portfolio values increase.
Marshall said 99% of platform revenue came from recurring revenue streams, consisting mainly of annual charges and wrapper fees. Wrapper fee income declined from the prior year, reflecting reduced charges for family-linked portfolios implemented in the second half of the previous financial year. He also reiterated that the company does not generate revenue by retaining interest on client cash.
Underlying profit before tax rose 16% to GBP 43.9 million, and the underlying profit margin improved to 51%. Underlying earnings per share increased 14% to GBP 0.10 per share. The company raised its first interim dividend by 15% to GBP 0.038 per share, with Marshall saying the dividend policy remains to pay out 60% to 65% of profit after tax over the company’s two dividends.
Cost program remains on track
Management said IntegraFin’s cost and efficiency program is progressing as planned. Marshall said administrative expenses increased 4%, or GBP 1.7 million, in the first half, with staff costs the main driver. Headcount fell by 16, or 3%, during the period, and non-staff costs declined due to property provision rebates and contract reviews with third-party suppliers.
The company reiterated guidance for total underlying administrative expense growth of 3% per year in fiscal 2026 and fiscal 2027. Marshall said cost growth is expected to slow in the second half compared with the first half. He also said the company remains confident in meeting its fiscal 2026 administrative expense target of GBP 94 million.
IntegraFin raised its expectations for net interest income to GBP 10 million in fiscal 2026 and GBP 11 million in fiscal 2027, citing changes in interest rate expectations. The company continues to expect net gains attributable to policyholder returns of about GBP 2 million per year.
Transact targets consolidators and broader adviser market growth
Scott said the U.K. adviser platform market grew 13% over the past 12 months, with market research forecasting average annual growth of 12% over the next five years. He said Transact took a 25% share of net inflows in the first half and holds a 10% share of the U.K. adviser platform market.
Management highlighted consolidation among financial advice firms as a key market trend. Scott said Transact is already positioned as a partner for consolidators and large advice firms, citing its breadth of wrapper capability, including bonds and trusts, as well as its service model, adviser succession service, APIs and integrations with CURO and other adviser CRMs.
In response to an analyst question, Scott said IntegraFin does not offer individual pricing deals to consolidators and instead uses a standard rate card. He said that approach helps maintain stability and efficiency in the business, adding that the company does not need special deals to win business given the value of its platform, technology and service offering.
AI and automation seen as efficiency drivers
Scott said IntegraFin is focusing on data access, data quality, integrations and APIs as the use of AI tools becomes more widespread among financial advice firms. He said the company is assessing ways to use AI and automation to reduce processing time and improve efficiency both internally and for clients and advisers.
The company is also exploring AI tools to enhance backend coding and testing within its proprietary technology development process. Scott said the near-term expectation is that AI will allow more development work to be completed by fewer people, slowing the growth in development costs as the business expands rather than immediately reducing headcount.
Scott described AI as a potential tailwind for the broader financial advice market, saying tools such as meeting transcription and suitability-report support could improve adviser productivity without replacing advisers. He said these tools could help advisers serve larger client bases while maintaining regulatory standards.
Analysts press on cash interest, flows and capital
During the question-and-answer session, analysts asked management about client cash interest, transfer activity, dividend policy, regulatory capital and capital allocation. Scott said it was “disappointing” to see another major platform move to take a share of client interest, and said his main concern was transparency for end clients. He said independent surveys showed clients often did not know this was happening and were “not actually very impressed” when they found out.
Marshall said transfer inflows were coming from a broad range of adviser firms and competitor platforms, rather than from issues at a single rival. He said advisers consider service, pricing, functionality and product diversity when selecting platforms, and noted that Transact’s onshore and offshore bond offering has helped position the company for transfers amid changes related to government budgets.
Asked about April and May sentiment, Scott said the company had not seen negative sentiment flowing through into adviser market activity. He said activity around March and April was influenced by normal tax-year-end pension and ISA patterns, and that geopolitical and U.K. political noise had not yet translated into reduced saving behavior.
Marshall said higher regulatory capital requirements were driven partly by the company’s investment firm, through a formulaic calculation, and partly by actuarial valuations in its insurance businesses. He said the rise was not expected to continue at the same rate.
On capital returns, Marshall said the company remains comfortable with its liquidity position and current dividend policy. He said the board periodically reviews surplus liquidity and potential returns in excess of the dividend policy, but “we’re not at that point at the moment.”
About IntegraFin (LON:IHP)
IntegraFin Holdings plc (IntegraFin) is the holding company for all of the entities involved in the provision of the Transact service. Transact is one of the largest independent wrap platforms in the UK. It offers advisory professionals a comprehensive financial planning infrastructure for investing client assets in a tax-efficient way.
