IntegraFin : Interim Report 2022

INTERIM RESULTS

SIX MONTHS ENDED 31 MARCH 2022

IntegraFin Holdings plc

Company registration number: 08860879

INTERIM

RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2022

IntegraFin Holdings plc (IHP) today announces its interim results for the six months to 31 March 2022.

Headlines

• Net inflows up 16% to £2.68bn (H1 2021: £2.31bn)
• Group revenue up 13% to £67.0m (H1 2021: £59.4m)
• Transact platform profit before tax up 10% to £33.7m (H1 2021: £30.7m)

Net inflows
£2.68bn	16%
H1 2021: £2.31bn
Group revenue
£67.0m	13%
(H1 2021: £59.4m)

• Investment in T4A - loss for H1 2022 of £1.1m, and post combination payments of £1.5m
• Group profit before tax up 2% to £31.7m (H1 2021: £31.2m)
• Further investment through adding 50 additional software development and systems staff during H2 2022 and H1
  2023 to strengthen the competitive advantage of our proprietary software and operations

Cautionary Statement

Platform profit before tax

£33.7m	10%
H1 2021: £30.7m
Group profit before tax
£31.7m	2%
H1 2021: £31.2m

These Interim Results have been prepared in accordance with the requirements of English Company Law and the liabilities of the Directors in connection with these Interim Results shall be subject to the limitations and restrictions provided by such law.

These Interim Results are prepared for and addressed only to the Company's shareholders as a whole and to no other person. The Company, its Directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom these Interim Results are shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

These Interim Results contain forward looking statements, which are unavoidably subject to risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. It is believed that the expectations set out in these forward looking statements are reasonable but they may be affected by a wide range of variables which could cause future outcomes to differ from those foreseen. All statements in these Interim Results are based upon information known to the Company at the date of this report. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise.

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Chief Executive Officer's statement................................................................	4
Financial review.............................................................................................	6
Operational performance..............................................................................	6
Group financial performance.........................................................................	7
Revenue....................................................................................................	9
Operating expenses...................................................................................	10
Financial position......................................................................................	13
Principal risks and uncertainties..................................................................	14
Directors' responsibility statement...............................................................	20
Independent review report to IntegraFin Holdings plc.................................	20
Unaudited Condensed Consolidated Statement of Comprehensive Income....	22
Unaudited Condensed Consolidated Statement of Financial Position.............	23
Unaudited Condensed Consolidated Statement of Cash Flows.......................	24
Unaudited Condensed Consolidated Statement of Changes in Equity............	25
Notes to the Financial Statements (unaudited).............................................	26
Directors, company details, advisers............................................................	46

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2022 3

Alexander Scott

Chief Executive Officer

CHIEF EXECUTIVE OFFICER'S STATEMENT

We are pleased to announce our results for the first half of the year. In a challenging environment we have continued to grow Group revenue and profits.

Our Transact platform has delivered its highest ever gross and net inflows. This is despite reduced market confidence in the second quarter, driven by geopolitical events and rising inflation.

Growth in revenue over the period has been dampened, as the fall in world equity markets has impacted growth in Funds Under Direction (FUD), even with record net inflows. That said, platform revenue has still grown at 11%, after fee reductions, as we have continued improving the price our Transact clients pay, making our service even better value for money.

The number of clients on the platform increased by 9% year on year and in the same period the number of advisers using Transact increased by 5%.

Delivered by Time for Advice, our adviser practice management tool, CURO, has also shown steady growth over the period. The number of user licences in force has increased 31%, driving up core revenues. Ongoing contractual revenues have increased 53% year on year. The Time for Advice development of its new CURO 365 software has been impacted because some of their development partners are based in Ukraine. However, initial release of the new CURO365 system is still expected before the end of the calendar year.

• INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2022

Testament to the quality of both Transact and CURO, is the recent awards of: Investment Trends Number 1 Rated for service for Transact, Professional Adviser Best Large Adviser Platform for Transact, and Best Adviser Technology Provider for Time for Advice.

We will also continue to invest in our proprietary software and operational systems

to ensure that we retain our 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.

The general economic outlook has deteriorated from that prevailing this time last year. We have negotiated the safe return of staff to our offices and the implementation of flexible working plans, whilst continuing to deliver award winning services, but now we are faced with major global uncertainty arising from Russia's invasion of Ukraine and the significant, resultant effects. When added to the existing inflationary pressures, these are negative

drivers for Transact revenue, and for all round expenses. However, the Group is in a strong financial position and is committed to developing the Transact platform and CURO, as well as investing in our people and delivering value to all key stakeholders.

The Board has declared a first interim dividend in accordance with the Company's dividend policy. In respect of the six months to 31 March 2022, an interim dividend of 3.2 pence per ordinary share

(H1 2021: 3.0 pence) will be payable on 30 June 2022 to ordinary shareholders on the register on 10 June 2022.

The ex-dividend date will be 9 June 2022.

	Contacts	Analyst presentation
	Investors	IntegraFin Holdings plc
		will be hosting an analyst
	Luke Carrivick	presentation on 26 May
		2022, following the release
	[phone]	of these results for the half
		year ended 31 March 2022.
	Media	Attendance is by invitation
	Lansons	only. Slides accompanying
		the analyst presentation
	Maddy Morgan Williams	will be available on the
		IntegraFin Holdings plc
[phone]	website.

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2022 5