Transact’s profits nearly doubled in its past financial year, allowing its parent company to pay a dividend to shareholders of 600,000.
Profits rose from 4.11m to 7.75m for the year ending September 30. Parent company Integrated Financial Arrangements has paid out a dividend of 60p.
Transact head of marketing Malcolm Murray claims Transact is handling the “lion’s share” of business in the wrap market and is pulling away from the competition. Funds under direction at the end of September passed the 5bn mark and now stand at 5.5bn.
Murray insists the underlying results are better than the headline figure implies as the new accounting standard used to estimate the cost of outstanding options on the company’s shares hides a much higher profit. He says that without the incumbent charge caused by the FRS20 standard, pre-tax profits would have been 8.47m.
He says: “The time has probably come to shake off this image of Transact being a niche player – the new kids on the block, the best-kept secret in the City, etc. The truth is, and we should now proclaim it more widely, that we are big players not only in the wrap world but, because wraps are gaining popu-larity, in the broader financial services world as well.”
“It is hard to ascertain just how much business is being handled by some of the other players in the wrap business since they are reluctant to say and some count assets that were not originally sourced as wrap business, but those that are doing well are less reticent. From all this, we can safely assert that we have the lion’s share.”