Transact posts highest-ever inflows

Transact posts highest-ever inflows

Investors poured £2.68bn into Transact’s platform over the past six months, the highest ever inflows for the company.

This marks a 16 per cent increase from the flows seen in the same period last year.

Alex Scot, chief executive of Transact’s parent company Integrafin, said the flows were despite reduced confidence in the second quarter driven by geopolitical events and rising inflation, though the economic uncertainty hit revenue.

“Growth in revenue over the period has been dampened, as the fall in world equity markets has impacted growth in funds under direction, even with record net inflows,” he said.

Revenue rose 13 per cent to £67mn, and pre-tax profits for the Transact platform were up 10 per cent to £33.7mn.

Funds under direction saw net inflows of £2.7mn, hampered by gross outflows of £1.4mn.

Client numbers increased 9 per cent and the number of advisers using Transact rose 5 per cent in the period.

Scott said the company would continue to invest in its proprietary software and systems to ensure it retains its “competitive advantage”. 

“We plan to incrementally add 50 additional software development and systems staff during the remainder of 2022 and early 2023. 

“This will further enable us to maintain our strong position as a focused provider of services to clients and their UK advisers, to efficiently scale the business and to deliver enhanced future profitability.”