IntegraFin Holdings PLC · LSE:IHP
IntegraFin — H1 2019 Earnings Presentation
18 slides from IntegraFin's earnings presentation, May 2019
Slide 1: Results Presentation Half Year ended 31 March 2019
Results Presentation Half Year ended 31 March 2019
Slide 2: Presentation team
Presentation team Ian Taylor Alex Scott Chief Executive Officer Chief Financial Officer • Co-founded IntegraFin in 1999 • Joined IntegraFin in 2009 • 1992 – Seven years in asset • 1997 – Twelve years in insurance management licence provision • 1987 – Five years in life industry • 1991 – Six years in
Slide 3: Key messages – half year ended 31 March 2019
Key messages – half year ended 31 March 2019 Flows and FUD proved resilient despite market conditions during H1 19 Total fee income £47.6m, up 7% compared to H1 18 Operating profit £22.2m, up 5% compared to H1 18 (normalised) Operating profit margin of 47% vs. 48% in H1 18 (normalised) Profit after
Slide 4: Impressive FUD growth
Impressive FUD growth Growth in Funds Under Direction (£bn)(1) compared to the MSCI World Index 2007 2018 • Transact has enjoyed FUD IntegraFin floats 12,000 First dividend 2012 on the London 34.4 growth every year since 2003 paid yearly Profit after Stock Exchange 33.1 2000 Transact thereafter tax
Slide 5: Flows and FUD proved resilient despite market conditions
Flows and FUD proved resilient despite market conditions £1.6bn £1.53bn £1.52bn £m H1 19 £1.46bn £1.45bn £1.44bn £1.39bn £1.4bn Opening FUD 33,113 £1.2bn £1.09bn Inflows 2,837 £1.07bn £0.98bn £1.0bn £0.96bn £0.93bn Outflows (1,027) £0.88bn £0.8bn Net inflows 1,810 £0.6bn Market (515) movements £0.4b
Slide 6: Total fee income up 7%
Total fee income up 7% 96% of total fee income is recurring H1 19 H1 18 Change £m £m Annual Fee Annual basis point charge levied on 41.3 38.8 +6% Income assets and cash held on the platform (87%) (87%) Wrapper Fee Annual fixed fee levied on all Transact 4.4 3.9 +13% Income wrappers (9%) (9%) Buy Com
Slide 7: Expenses breakdown
Expenses breakdown £m H1 19 H1 18 Change Staff costs 18.4 17.2 +7% Occupancy 1.8 1.6 +13% Regulatory and professional fees 2.5 4.5 (44%) Other costs 1.9 2.1 (10%) (1) Total expenses 24.6 25.4 (3%) Depreciation and amortisation 0.3 0.3 0% (1) Total operating expenses 24.9 25.7 (3%) (1) Of which £2.9m
Slide 8: Staff numbers
Staff numbers Staff costs have increased due to 31 Mar 19 31 Mar 18 Change - Introduction of staff share IT & Technology 110 107 +3% incentive plan and Operational & Support 361 359 +1% Sales & Marketing 43 41 +5% performance share plan Total staff 514 507 +1% - Increase in auto-enrolment (1) contri
Slide 9: P&L and cash flows
P&L and cash flows Profit & Loss Cash Flows £m H1 19 H1 18 £m H1 19 H1 18 FUD (£bn) 34.4 29.8 Adjusted Operating Profit 22.2 21.2 Adjustments(1) 0 (2.7) Total Fee Income 47.6 44.6 Operating Profit 22.2 18.5 Cost of Sales (0.5) (0.4) Depreciation & Amortisation 0.3 0.3 Net Revenue 47.1 44.2 Working C
Slide 10: Strong profit growth while also reducing fees
We continue to achieve strong profit growth while also reducing fees CAGR(4): 11% £91.2m £80.2m £59.5m £63.6m £68.4m +7% • Transact has an impressive record of consistently growing both Revenue and Operating Profit Income(1) Total Fee HY £47.6m £44.6m • Given its scale and operating leverage, Transa
Slide 11: Group balance sheet remains strong
Group balance sheet remains strong 31 March ‘19 £m Non-current assets • Transact operates with a conservative balance sheet Loans and receivables 1.2 position: Intangible assets 13.0 Property, plant and equipment 2.1 Deferred acquisition costs 48.4 • No debt as at March ’19 64.7 Current assets • Pol
Slide 12: Award winning platform
Award winning platform Nov ‘18 Financial Adviser Service Awards – 5* Investment Award Feb ‘19 Professional Adviser – Best Platform for Advisers (FUD over £20bn) Mar ‘19 PLC Awards – New Company of the Year May ‘19 Investment Trends – 1st in overall satisfaction league table for tenth year in a row R
Slide 13: Summary: Transact enjoys a strong growth profile
Summary: Transact enjoys a strong growth profile Growth in UK Wealth Market Industry Drivers Growth in assets managed by financial advisers Growth in wealth managed by current advisers Increasing penetration of current advisers Penetration Market New advisers joining Transact Strong growth profile f
Slide 14: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein
Slide 15: Appendix – Gross inflows split by wrapper
Appendix 1 – Gross inflows split by wrapper £800m £700m £600m £500m £400m £300m £200m £100m £m Q1 FY 17/18 Q2 FY 17/18 Q3 FY 17/18 Q4 FY 17/18 Q1 FY 18/19 Q2 FY 18/19 Pension GIA ISA Bonds Source: Unaudited internal data Results Presentation 15
Slide 16: Appendix – Pension transfers in split by DB/DC
Appendix 2 – Pension transfers in split by DB/DC £800m £700m £600m £500m £392m £363m £394m £446m £400m £452m DC DB £400m £300m £200m £315m £282m £253m £100m £216m £175m £131m £0m Q1 FY 17/18 Q2 FY 17/18 Q3 FY 17/18 Q4 FY 17/18 Q1 FY 18/19 Q2 FY 18/19 Source: Unaudited internal data Quarter Q1 17/18
Slide 17: Appendix – Growth in number of clients and advisers
Appendix 3 – Growth in number of clients and advisers 200,000 7,000 180,000 6,000 160,000 140,000 5,000 Investor Count Adviser Count 120,000 4,000 100,000 3,000 80,000 60,000 2,000 40,000 1,000 20,000 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Count of Investors Count of Advisers Source:
Slide 18: Appendix – Cohort analysis
Appendix 4 – Cohort analysis Source: Unaudited internal data Results Presentation 18