Full Year 2025 IntegraFin Holdings plc Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Sanderson - Barclays - Analyst : Morning, Alex. Morning, Euan. Just a couple of questions if that's okay. First one, I suppose you set out your capital allocation framework, and you have the inorganic element before any sort of thoughts of returning to shareholders. I'd be interested to know what areas you think or inorganic development might go at this point given your sort of strong organic story over many years. And I guess the second piece I was interested in is there's been quite a lot of noise or quite a lot of developing noise around tokenization in the funds market and how that's likely to evolve in the coming years. And I guess, interested to know how you think about preparation investment, that's something that the timing is so unclear, and given it's your proprietary technology, how you choose to allocate and approach that potential quite sizeable change in the market in due course. Thank you very much.

Question: David McCann - Deutsche Numis - Analyst : Great. Good morning, everyone. Thanks for taking my questions. Three from me, please. So firstly, you've given some guidance that you're expecting a similar Q1 for net flows to Q1 of last year. Obviously, that compares to some of your peers which obviously pointed to a weaker period-on-period comparison really driven by pension lump sum outflows in relation to the budget. So I guess why do you think you haven't quite seen the same impact as some of your peers have been talking about there? That's the first one. And second one on costs. I mean, what comfort can we, as investors and analysts, gain from the comments you made today that the 3% is a rigid ceiling on cost growth given some of the experience from yourself and the sector in the past where the costs have obviously been higher than that for a number of years? Should we really be sort of banking on 3% being an absolute upper ceiling there? So any further comfort you can give us there from the comments you've already made. And then finally, sticking with the cost theme, beyond FY '27, could we see a return to more directly normal level view of mid to high single-digits growth being more normal here? So if this is really just a two-year thing and then it sort of reverts to normal thereafter or do you think there can be lasting effects of lower single-digit growth? Thank you.

Question: David McCann - Deutsche Numis - Analyst : Oh yes. Thank you. I was on mute. But yeah, thank you. That's great.

Question: James Allen - Berenberg - Analyst : Morning, guys. Hopefully, you can hear me okay. Two from me. Just around your point on revenue margin and the attrition there being expected to slow. In terms of the price cuts on the platform during FY '25, what was the in-period revenue impact and what was the annualized impact of that, i.e. the remaining impact in FY '26? Secondly, the Australian VAT issue, I know it's been a few years since we heard anything on this. Could you just remind me about where we are on this now? From memory, we were waiting for cases to be resolved involving HSBC or Barclays that would set a precedent. If you could just remind us where we are on that, that would be helpful. Thanks.

Question: James Allen - Berenberg - Analyst : Perfect. Thanks very much.

Question: Ben Bathurst - RBC Capital Markets - Analyst : Morning. I've got questions in three areas, if I may. Starting on one for Alex, probably, on pricing. I just wondered, could you provide some market context to the decision to broadly hold charges flat at this point? And so specifically, how do you now assess the current pricing differential to be for Transact versus your closest competitors? And do you expect that differential to now change looking forwards? And then secondly, on capital, probably for Euan, how should we think about the likely growth in ongoing capital requirements looking forward? Should that grow broadly with the level of funds under the direction or could that be at a slightly slower rate than that? And then finally on the flow outlook, you obviously talked about confidence and growing market share. Are there any customer groups that you could do better with in terms of net flows? And are you intending to target those more specifically looking forwards? Thank you.

Question: Ben Bathurst - RBC Capital Markets - Analyst : Okay. Great. Thank you for those.