Dundee-based investment platform Alliance Trust Savings (ATS) has moved into the black following a jump in assets under administration.
The firm, owned by Alliance Trust, said it delivered a profit of £400,000 for the six months to the end of June, compared with a £1.1 million loss for the same period in 2015, and is on track to generate a surplus for the full year.
Assets under administration rose 40 per cent to £12 billion, while customer account numbers were up by almost a third, driven by last year’s takeover of Edinburgh-based rival Stocktrade.
ATS chief executive Patrick Mill said: “In recent years we have made substantial investments in the business with the acquisition of Stocktrade, the creation of a new board and executive committee to oversee our governance and management as a standalone business and the upgrade to new platform technology.
“These investments are now bearing fruit. Delivering a profit at the half-year mark demonstrates the success of our business strategy and the appeal of our flat fee model to both direct and advised customers.”
Alliance Trust, which last month said it was making “good progress” with a strategic review aimed at boosting shareholder value, decided last year to create a separate board for ATS following the departure of Karin Forseke as the group’s chair.
Mill added: “In the second half of 2016, we expect to continue to win new business attracted by our unique flat fee structure, award-winning customer service, and improved platform functionality. We are also making good progress in our corporate partnership channel and expect this to bring additional business by the end of the year.
“These factors, together with the greater certainty over our revenue that our fixed fee model gives us, especially in volatile markets, mean we remain confident that we are on track to deliver on our commitment to generate a profit for the full year in 2016.”