Transact has seen funds under direction (FUD) rise by 8% to £65.9bn helped by market recovery and strong inflows.

Parent company Integrafin (IHP) said it also saw strong gross and net flows during the half-year period.

Despite the growth, net pre-tax profit fell 8% to £29.8m and there was a £7.5m write down on its 2021 acquisition of Time4Advice (T4A), now rebranded as Curo.

The write down was for “impairment of the goodwill and intangible assets held in relation to the T4A acquisition.”

IHP said T4A's projected financial performance in the short and medium term had “deteriorated” and as a result the latest cash flow projections indicate that the value of T4A exceeds its recoverable amount. Despite the write down IHP says it remains committed to T4A as part of its  “strategy of providing better solutions to clients to make Financial Planning easier.”

Net flows were at an annualised 7% of opening FUD with net flow performance for H1 showing a 91% increase over the same period in 2024.

There was sustained strong flow performance since 31 March ahead of, and following, the tax year-end, the company said.

Financial highlights:

• Net inflows of £2.1bn (HY24: £1.1bn).
• Group revenue of £77.2m, 10% higher than HY24 (£70.4m).
• Reported profit before tax fell 8% to £29.8m (HY24: £32.4m). Underlying profit before tax grew 13% to £37.9m (HY24: £33.5m).
• Client numbers rose 4% to a new high of 241,100.
• The board has declared a first interim dividend of 3.3 pence per share (HY24: 3.2pps)

The company, celebrating 25 years of its platform Transact this year, said that global equity market volatility in April had adversely impacted Transact FUD resulting in average daily FUD for April of £64.4bn. Alongside the recovery in global equity indices, FUD has continued to improve as May has progressed, it said.

Alexander Scott, IHP group chief executive officer, said the company had begun the new year well.

He said: "It has been a strong start to the year with substantial growth across our key financial metrics, increasing revenue by 10% and underlying profit before tax by 13%.

“Our diligent approach to client service and regular enhancements to the Transact platform's proprietary technology, remain key to our competitive position.”

He added that the roll-out of the next generation CURO on Power Platform back-office software was progressing well.

He said that despite the global uncertainty impacting equity markets in recent months, “we are confident that our strong platform proposition and the secular trends affecting the UK savings and investment market remain very favourable. This is illustrated through our strong new business flows in Q2 FY25.”