Transact platform development racks up £9m bill

Transact platform development racks up £9m bill

The owners of the Transact platform spent £9m on developments to the platform in the year to the end of September 2019, the firm's accounts have shown.

The £9m was spent on a combination of new software, staff training and other enhancements.

The company's chief executive at the time the accounts were made up, Ian Taylor, said: “We are guided by feedback from clients and advisers when prioritising changes to Transact. The emergence of new adviser practices and product, wrapper and functionality additions may all require the deployment of new technologies.”

He described not investing in this way as a “risk to the business.” 

The information was contained in the latest results for Integrafin, the owner of the platform, uploaded onto Companies House on March 5. 

The financial period covered is the year to the end of September 2019, when Integrafin posted a profit of £40m, and net inflows of £3.5bn. 

Mr Taylor, who stepped down as chief executive on March 2 and was replaced by Jonathan Gunby, said more cash would be spent in 2020.

He previously told FTAdviser that each year he divides surplus cash of the business into three pots, one for the shareholders, who get paid a dividend, one for the staff for payrises and incentives, and one for company development.

The dividend in the year to the end of September 2019 accounted for 64 per cent of the profits. 

Mr Taylor said he does not regard the company as a Fintech business. He said the aim of the company was simply to "not foul up" and take advantage of the growth of the wider savings market. 

Mr Taylor remains an executive director of the business and will focus on key client relationships. 

The platform had funds under direction of £37.8bn at the end of September 2019, an increase of 14 per cent on the previous year.

The number of advisers using the platform was 5,900. 

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