IntegraFin Holdings PLC (LSE:IHP) shares climbed 16% following a strong third-quarter trading update, highlighted by net inflows of £1.2 billion to its Transact investment platform, a rise of 84% compared to the same period last year.
This marks the fourth consecutive quarter of growth in net inflows and brings year-to-date inflows to £3.7 billion, nearly doubling the previous year’s total.
Funds under direction on Transact reached £69.5 billion at the quarter’s end, up 11% year on year, supported by a growing client base now numbering 244,700, a 5% increase. Average daily funds also rose to £66.8 billion.
IntegraFin, a wealth management platform provider, expects strong momentum to continue, driven by its platform’s technological edge, service quality, and competitive pricing.
The group has begun a comprehensive cost review aimed at improving efficiency and boosting future earnings growth.
While cost growth for the current year remains around 9%, it expects a slowdown to low single-digit increases in the next two years.
The shares rose 51.54p to 376p, but broker Shore Capital thinks they have further to go.
"We view the valuation as attractive for a stock we regard as a high-quality, long-term compounder, and think this is a good time to look at [Integrafin] as we approach the inflexion point in its operating margin, this being the reason we upgraded the stock to buy in January," it said in a note.
"Strong momentum in net flows reinforces our 'buy' stance on IHP with significant upside to our prevailing fair value estimate of 390p."