IntegraFin Earnings Call Highlights Robust Inflows and Growth

IntegraFin Holdings PLC ((GB:IHP)) has held its Q4 earnings call. Read on for the main highlights of the call.

IntegraFin’s earnings call painted a broadly upbeat picture, with management emphasizing strong growth in net inflows, revenue and earnings, alongside a healthy dividend increase. While they acknowledged headwinds from rising costs, non-underlying charges and gradual revenue margin erosion, the tone was confident: operational efficiencies, technology investments and robust client flows are seen as more than offsetting the negatives.

Surging Net Inflows Underpin Growth Story

IntegraFin reported net inflows of £4.4 billion, a striking 76% increase on FY ’24, fuelled by record gross inflows of £10.1 billion. Management credited the result to ongoing adviser and client demand for its Transact platform, supported by digital enhancements that have made onboarding and servicing smoother. The strong inflow performance signals continued market share gains and reinforces the platform’s role as a core growth engine for the group.

Revenue and EPS Advance Despite Margin Pressure

Group revenue rose 8% to £156.8 million, with underlying earnings per share up 7% to 17.4p. This solid top- and bottom-line expansion was delivered even as the company acknowledged a steady moderation in platform revenue margins. The growth reflects both higher funds under direction and disciplined underlying operations, suggesting that volume growth is more than compensating for pricing and margin headwinds.

Dividend Lift Highlights Confidence in Cash Generation

The board raised the total dividend for FY ’25 to 11.3p per share, a 9% increase on the prior year. The payout uplift signals confidence in the durability of IntegraFin’s cash flows and balance sheet, and will appeal to income-focused investors. It also underscores management’s commitment to returning capital to shareholders while still funding ongoing investment in technology and efficiency.

Record Funds Under Direction Strengthen Platform Economics

Average daily funds under direction reached £67.9 billion, up 14% year-on-year. This record level of assets not only underpins current revenues but also provides a larger base for future fee income, even as fee rates drift lower. The expansion in FUD reflects both positive market movements and strong net inflows, confirming the platform’s growing importance for advisers and end clients.

Cost Review Targets Structural Efficiency Gains

The recently completed cost and efficiency review is expected to deliver £4 million of annualised savings by FY ’27. Management framed this as a structural improvement in the cost base, aimed at ensuring that scale benefits flow through to profitability as the business grows. These savings should partially offset wage and technology inflation and help protect margins in a lower-fee environment.

Non-Underlying Charges Cloud Headline Results

Non-underlying expenses hit £9.2 million, dominated by a £7.5 million impairment of goodwill related to T4A. While described as non-recurring, these items weighed on reported profits and highlight the risks associated with past acquisitions and development projects. The company was keen to separate these from underlying performance, but investors will still watch closely for any further write-downs or exceptional costs.

Revenue Margin Attrition Continues, but at a Controlled Pace

Management reiterated that platform revenue margins have been moderating and are expected to decline slowly over time, largely as a result of tiered and more competitive pricing structures. While this is a drag on revenue per unit of assets, the company argues that it supports long-term growth by reinforcing the platform’s value proposition and helping retain and attract advisers. The strategy effectively trades some margin for higher volumes and improved client loyalty.

Rising Administrative and Employee Costs in Focus

Underlying administrative expenses increased 9% from FY ’24, with employee costs up 11%. These higher costs reflect continued investment in technology, regulatory compliance and service capabilities, but they also pressure operating leverage in the short term. The cost and efficiency programme is intended to slow this growth, yet investors will be alert to whether expense discipline can keep pace with revenue trends in the coming years.

Guidance: Sustained Growth, Ongoing Investment and Measured Margin Drift

Looking ahead, IntegraFin’s guidance calls for continued momentum in net inflows, funds under direction and earnings, supported by its Transact platform and technology investments. The company expects to realise £4 million of annualised cost savings by FY ’27 and guides for underlying administrative expenses to grow at about 3% per year in FY ’26 and FY ’27, a marked deceleration from the latest increase. Management aims to maintain platform revenue margins with only a slight decline as tiered pricing continues, and intends to keep investing in technology and operational efficiency to drive scalable growth. The strategic focus remains on organic expansion, bolstered by selective inorganic opportunities where they can enhance the platform’s technological edge.

IntegraFin’s latest earnings call reinforced a narrative of robust growth and strategic discipline, tempered by manageable cost and margin pressures. Strong inflows, rising earnings and a higher dividend underline the business’s resilience and attractiveness, while the cost programme and technology investments are designed to protect profitability as the platform scales. For investors, the story is one of solid fundamentals, careful cost control and a long-term commitment to making growth more efficient.