Transact’s net inflows down 4% as it warns of revenue hit

Transact’s net inflows down 4% as it warns of revenue hit
Photographer: Chris Ratcliffe/Bloomberg

Integrafin, the owner of advised platform Transact, recorded a 4 per cent dip in net inflows to the platform in the first three months of 2022, compared to the same quarter last year.

In a trading update today (April 20), Transact posted £1.395bn of net inflows, compared to £1.467bn of net inflows in the same quarter of 2021.

Over the same period, inflows were down £61mn, and outflows had increased slightly by £11mn, from £686mn to £697mn.

Article continues after advert

Overall, the platform’s funds under direction (FUD) fell to £53.5bn in the quarter, down £1bn from the £54.54bn it recorded at the end of December 2021.

The company mentioned impacts on its revenue caused by this £1bn dip in FUD. Compared to March 2021, FUD remained the same.

Shares in the platform owner were up around 1 per cent this morning.

Alex Scott, Integrafin’s chief executive, said net inflows for this quarter were impacted by “the timing of Easter” and the resultant number of days prior to tax year end in April 2022 when compared to the prior year.

As for the £1bn dip in FUD, Scott said this was the result of “unexpected, and continuing, geo-political events impacting stock markets”. 

“This has a corresponding impact on our revenue,” the Integrafin boss added.

Transact’s owner is mindful of the “challenging” economic outlook and the impact of inflationary pressures on its cost base, Scott said.

However, it continues to invest in its workforce and the development of its technology - including its Time4Advice adviser back office system, which Integrafin acquired in January 2021 for an undisclosed sum.

Back in December, Integrafin recorded a £7.7mn increase in administration expenses which it mainly put down to an increase in staff costs.

In the previous quarter, between October and December 2021 - Transact’s Q1 2022 - the platform recorded record net flows, marking a 22 per cent increase on the platform’s previous best Q1 back in 2018.

The platform’s owner was therefore quick to highlight today that inflows for the first half of its 2022 financial year surpassed £4bn for the first time, and that net inflows have reached £2.7bn - a 16 per cent on the comparative period in 2021.

Transact’s owner will publish its full half year results on May 26, 2022.