Market's view on IntegraFin Holdings
Published on April 2024
- A podcast discussed IntegraFin’s stable recurring revenue, growth history, ‘responsible pricing’, appealing financials, thin-cat co-founder, intriguing valuation, and comparisons with Hargreaves Lansdown and AJ Bell.
- IntegraFin has consistently seen net positive inflows of new client money each quarter for the last 22 quarters.
- Transact, an adviser platform under IntegraFin, is seen as having ‘sticky’ adviser money, mainly in long-term pensions, unlike retail platforms that face different pressures.
- A concern was raised regarding an overreaction to a market event, leading to a temporary drop in share price, though some expect recovery to previous levels.
- Despite a major dip in share price, some stock watchers considered it excessive and chose to buy the dip.
- IntegraFin announced a significant increase in its Funds Under Direction (FUD) for Transact, marking robust growth and record net inflows for a quarter.
- There was a discussion about the impact of a director selling a substantial shareholding, which appeared to disproportionately affect the company’s market capitalisation.
- Transact’s strategy of not aiming to be the cheapest platform but focusing on being the best is highlighted, noting that its fees have progressively reduced over the years for certain portfolio brackets.
- The company is recognised for its solid long-term investment case despite current lack of share price momentum.
- Stock watchers express surprise and confusion at the market’s negative reaction to positive results.
- The leadership and corporate culture built by a stepping-down CEO were praised, underscoring his approachable and honest demeanor.