IntegraFin Holdings PLC (LON:IHP) said its investment platform Transact achieved its highest quarterly inflows in the three months to 31 March.
Compared with its second-quarter last year, which was the previous highest, gross inflows increased 27%.
Outflows increased broadly as expected in line with funds under direction (FUD) and net inflows consequently were 33% higher.
At March-end FUD totalled £49.9bn, representing an increase of 4.7% over the quarter.
Over the same period the FTSE All-Share Index rose by 4.3% and the MSCI World Index (Large & Mid Cap) rose by 3.6%.
The FTSE 250 group’s chief executive Alex Scott said it was due to a strong tax year-end performance as well as advisers' positive reaction to price reductions announced in December.
The half-year results next month will include costs associated with the Nucleus process and the acquisition of Time for Advice, including ongoing investment in that business to achieve profitability.
Analysts at house broker Peel Hunt downgraded the stock to ‘add’ from ‘buy’ and lifted the target price from 610p to 620p.
“From the low point in the fourth quarter of 2020, there has been a material improvement in both gross and net flows, whilst gross outflows have remained broadly flat against the previous quarter,” they commented.
“Market conditions continued to recover after the disruption from the pandemic last year, with Transact seeing a particularly strong tax year end. We believe this is partly a function of pent-up demand, but it does clearly highlight that the platform remains attractive for advisers and their clients.”
Shares advanced 4% to 569.5p on Tuesday at the opening bell.