LEI Number: 213800CYIZKXK9PQYE87
17 January 2023
IHP Group quarterly update - Q1 of financial year 2023
Group headlines
· Resilient net inflows to the Transact platform during the quarter of £0.7bn, with gross inflows for the quarter of over £1.4bn.
· Continued growth of the Transact platform's adviser and customer base. As at 31 December 2022 there were over 7.6k registered advisers, and c.227k clients using the platform.
· Due to the impact of market movements the average daily funds under direction ('FUD') for the quarter was £51.5bn, whilst in the comparative quarter of FY22 it was £53.5bn.
· Cost guidance for financial years ending 30 September 2023 and 30 September 2024 remains unchanged (as issued at our year end reporting in December 2022).
Transact platform reporting for Q1 FY23:
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Quarter ended
31 December 2022
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Quarter ended
31 December
2021
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£m
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Opening FUD
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50,070
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52,112
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Inflows
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1,469
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1,976
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Outflows
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-769
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-688
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Net Flows
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700
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1,288
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Market movements
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1,319
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1,207
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Other movements(1)
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-26
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-68
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Closing FUD
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52,063
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54,539
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Average daily FUD for the period (£m)
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51,470
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53,514
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Number of registered advisers
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7,632
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7,278
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Number of platform clients
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226,996
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213,178
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Notes: (1) Includes fees, taxes and investment income.
Time4Advice
· Time4Advice's next generation CURO software is currently live for beta testing with an adviser firm, and the planned roll out to adviser firms will commence in the second half of FY23.
Alex Scott, IHP Group Chief Executive Officer, commented:
"I am pleased to report another quarter of solid growth for the Transact platform, maintaining the momentum seen during FY22.
Whilst the economic landscape continues to be affected by higher inflation and economic uncertainty, the advised market remains robust, with clients continuing to seek financial advice to implement their financial plans and to mitigate the prevailing economic risks.
Net inflows to the Transact platform for this quarter of £0.7bn were resilient, particularly in light of the economic environment, and were in line with the fourth quarter of FY22. Outflows for this quarter remained broadly in line with previous quarters, showing that our clients and their financial advisers continue to use the platform to support their long term financial plans.
The Transact platform continues to demonstrate growth with new financial advisers joining the platform and client numbers increasing by over 2.2k during the quarter. This provides a solid pipeline for ongoing growth in FUD.
Overall, our business is performing well and we are continuing to execute on our strategy. We remain on schedule to commence the roll out of the next generation CURO software during the second half of FY23. We are resolutely focused on delivering the highest quality customer service which, together with our proprietary platform technology, should position us well for ongoing growth.''
Transact Platform historical information:
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£m
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Q2
FY21
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Q3
FY21
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Q4
FY21
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Q1
FY22
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Q2
FY22
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Q3
FY22
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Q4
FY22
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Q1 FY23
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Opening FUD
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44,824
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46,929
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50,310
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52,112
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54,539
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53,500
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50,300
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50,070
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Inflows
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2,153
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1,994
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1,967
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1,976
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2,092
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1,703
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1,505
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1,469
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Outflows
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-686
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-657
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-660
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-688
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-697
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-703
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-785
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-769
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Net Flows
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1,467
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1,337
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1,307
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1,288
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1,395
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1,000
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720
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700
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Market movements
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694
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2,112
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553
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1,207
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-2,376
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-4,152
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-927
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1,319
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Other movements(1)
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-56
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-68
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-59
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-68
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-58
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-48
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-23
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-26
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Closing FUD
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46,929
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50,310
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52,112
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54,539
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53,500
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50,300
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50,070
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52,063
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Average daily FUD for the period (£m)
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45,873
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48,677
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51,647
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53,514
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52,551
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51,889
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52,217
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51,470
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Number of registered advisers
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6,962
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7,056
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7,161
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7,278
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7,356
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7,469
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7,537
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7,632
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Number of platform clients
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201,104
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205,532
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208,611
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213,178
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218,787
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221,992
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224,705
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226,996
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Notes:
(1)Includes fees, taxes and investment income.
Enquiries
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Investors
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Luke Carrivick, IHP Head of Investor Relations
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+44 020 7608 5463
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Media
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Lansons: Tony Langham
Lansons: Maddy Morgan-Williams
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+44 (0)7979692287
+44 (0)7947364578
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