Transact’s parent company, Integrated Financial Arrangements, has reported profits for the year ending 30 September 2015 of £20.8m, up from £17.8m the year before to their highest ever total.
Assets under management also grew from £16.9bn in 2014 to £19.1bn last year.
The company attributed these gains to being the first platform to enable flexible access drawdown and uncrystallised fund pension lump sums post-pension freedoms.
Chief development officer Jonathan Gunby, at Transact, said the firm was able to act fast “because we own our own software which enabled us to make those changes quickly”.
A growing number of advisers using Transact also helped boost profits, said Mr Gunby, with 50 to 100 advisers now providing business every month.
Monthly inflows increased 8 per cent to an average of £281m per month.
But chief executive Ian Taylor said the platform is interested in writing profitable business, meaning inflows are not an end in themselves. “There’s no point in writing loads of business if you cannot write it profitably,” he said.
Last month, Transact stated it was waiting for the right market conditions as it laid the groundwork for an initial public offering of 25 per cent of its business, plans it first revealed in 2010.
Mr Taylor added: “Continuing as a profitable business as we have been for some time now, is always very helpful when you are about to float the business.”
Kim Barrett, senior partner of Essex-based Barretts Financial Solutions, said that they use Transact extensively. “They have progressively reduced costs, which are 0.31 per cent (annual management charge), when we started it was 0.55 per cent.
“I’m interested in their growing AUM, because economies of scale means the more assets they can scale, the more they can reduce charges. I just wish I’d had the opportunity to buy the shares.”
