LEI Number: 213800CYIZKXK9PQYE87
17 October 2023
IHP Group quarterly update - Q4 of financial year 2023
Group headlines:
· Robust Q4 FY23 flows to the Transact platform, with net inflows of over £0.4bn, and gross inflows of over £1.5bn, highlighting the resilience of the Group's platform business model and strong intermediary relationships.
· Net inflows for FY23 to the Transact platform of over £2.6bn, representing over 5% of opening funds under direction ('FUD').
· Record quarter end Transact platform FUD position of £54.9bn.
· Total Group revenue is expected to be c. £134.9m for FY23 (FY22: £133.6m), driven by higher average daily FUD in the period.
· Our guidance, as issued at HY23 in May 2023, remains unchanged for FY23 (ending 30 September 2023) and FY24 (ending 30 September 2024).
Transact platform:
· Record number of Transact platform clients of over 230k at the end of FY23 (FY22: 225k), a 2% increase over the year.
· Growth of the Transact platform's adviser base - at the end of FY23 there were 7.6k advisers registered on the Transact platform (an increase of 2% from FY22).
· The average (daily) FUD on the Transact platform during FY23 was £53.6bn. This compares with an average during the prior financial year of £52.5bn.
|
£m |
Quarter ended 30 September 2023 |
Quarter ended 30 September 2022
|
Financial year ended 30 September 2023 |
Financial year ended 30 September 2022 |
| Opening FUD | 54,606 | 50,300 | 50,070 | 52,112 |
| Inflows | 1,595 | 1,505 | 6,406 | 7,275 |
| Outflows | -1,184 | -785 | -3,753 | -2,873 |
| Net flows | 411 | 720 | 2,653 | 4,402 |
| Market movements | -62 | -927 | 2,272 | -6,248 |
| Other movements(1) | 4 | -23 | -36 | -196 |
| Closing FUD | 54,959 | 50,070 | 54,959 | 50,070 |
| Average daily FUD for the period (£m) | 54,964 | 52,217 | 53,638 | 52,544 |
| Number of registered advisers | 7,683 | 7,537 | 7,683 | 7,537 |
| Number of platform clients | 230,294 | 224,705 | 230,294 | 224,705 |
Notes: (1) Includes fees, taxes and investment income.
Time4Advice:
· Excellent growth in total chargeable users of CURO software, with 2.8k users at the end of FY23, an increase of 22% during the financial year.
Alex Scott, IHP Group Chief Executive Officer, commented:
"I am pleased with the resilient performance shown by the IHP Group during the past financial year ended 30 September 2023.
Gross inflows of over £6.4bn and net inflows of over £2.6bn for the year represent a solid performance in the face of economic uncertainty and ongoing investor caution. While outflows from the Transact platform, similar to our peers, have increased in the quarter as our clients continue to be impacted by cost-of-living pressures and heightened interest rates, I am pleased with the ongoing growth in our platform adviser and client numbers, with the latter now at a record high of over 230k.
Our position in the market remains strong. The most recent set of data from Fundscape shows the Transact platform has continued to grow its market share of the advised platform market net inflows. Transact also remains one of the highest rated platforms in the advised market for service and won two awards at the recent Schroders UK Platform Awards 2023 - Platform of the Year and Leading Platform for Discretionary Investment Management.
At Time4Advice, the number of chargeable users of the current CURO software is growing well, with 500 new users signed up in the financial year. We continue to refine the new version of the CURO adviser software, to enable efficient delivery to adviser firms across the UK.
Notwithstanding the ongoing macro-economic uncertainty, we remain confident in our market position, the strength of our proposition to advisers and clients and our ability to grow client numbers and deliver robust net flows. Our platform digitalisation programme is well underway and we have successfully implemented our Consumer Duty programme of work. We remain well positioned to take advantage of a growing adviser platform market and deliver attractive growth and returns to our shareholders.
We look forward to providing our year end results on 14 December 2023."
Transact platform historical information:
| £m | Q1 FY22
| Q2 FY22
| Q3 FY22
| Q4 FY22
| Q1 FY23
| Q2 FY23
| Q3 FY23
| Q4 FY23
|
| Opening FUD | 52,112 | 54,539 | 53,500 | 50,300 | 50,070 | 52,063 | 53,973 | 54,606 |
| Inflows | 1,976 | 2,092 | 1,703 | 1,505 | 1,469 | 1,825 | 1,517 | 1,595 |
| Outflows | -688 | -697 | -703 | -785 | -769 |
-900
| -900 | -1,184 |
| Net flows | 1,288 | 1,395 | 1,000 | 720 | 700 | 925 | 617 | 411 |
| Market movements | 1,207 | -2,376 | -4,152 | -927 | 1,319 | 994 | 21 | -62 |
| Other movements(1) | -68 | -58 | -48 | -23 | -26 | -9 | -5 | 4 |
| Closing FUD | 54,539 | 53,500 | 50,300 | 50,070 | 52,063 | 53,973 | 54,606 | 54,959 |
|
Average daily FUD for the period (£m)
| 53,514 | 52,551 | 51,889 | 52,217 | 51,470 | 53,842 | 54,288 | 54,964 |
| Number of registered advisers | 7,278 | 7,356 | 7,469 | 7,537 | 7,632 | 7,563 | 7,606 | 7,683 |
| Number of platform clients | 213,178 | 218,787 | 221,992 | 224,705 | 226,996 | 228,232 | 229,659 | 230,294 |
Notes:
(1)Includes fees, taxes and investment income.
| Enquiries: |
| |
|
|
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| Investors |
| |
| Luke Carrivick, IHP Head of Investor Relations | +44 020 7608 5463 | |
| Media |
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| Lansons: Tony Langham Lansons: Maddy Morgan-Williams | +44 (0)7979692287 +44 (0)7947364578 |
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