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Transact posts £14.7m profit and sees 14% adviser boost

Ian Taylor Transact 440
Transact managing director Ian Taylor

Profits at Transact remained flat in the year to September 2012 despite seeing the number of advisers using the platform increase by 14 per cent.

The platform made a pre-tax profit of £14.7m last year, compared to a £14.6m pre-tax profit in 2011.

Transact’s 2011 results were hit after it was fined £3.5m by the FSA in December 2011 over failures to protect client money.

Assets on the platform grew by 19 per cent in 2012 from £10.1bn to £12bn as at the end of September.

Over the period the number of advisers rose 14 per cent from 5,000 to 5,700, while the number of clients grew by 5 per cent from 94,000 to 99,000.

Despite the level profits, Transact has boosted its dividend by 25 per cent from £2 per share to £2.50.

Turnover and expenses both stayed relatively flat during the year, at £49.6m and £34.8m respectively. Staff numbers rose 9 per cent from 300 to 328.

Page Russell director Tim Page says: “Transact is doing okay given the headwinds the whole platform market is facing at the moment. The pure wraps have a golden window of opportunity on which to capitalise now given the regulator has suggested the market is set to move in their favour.”

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