EDINBURGH-BASED financial wrap provider Nucleus yesterday hailed record half-year results and predicted assets handled through its platform will top £10 billion next year.
Nucleus, which provides services that enable independent financial advisers (IFAs) to manage their clients’ investments in one account, saw inflows for the first six months of 2014 total £965 million, up 15 per cent on the same period in 2013. Assets under administration soared by a third to more than £7.1bn.
Turnover at the firm, which was founded in 2006 and is owned by its IFA membership, increased by 26 per cent to £11.1m, up from £8.8m in 2013, with operating profits increasing by 85 per cent to £1m.
The firm said the performance had come during a period when its platform underwent its biggest ever technology upgrade which will deliver significant performance improvements for advisers.
Chief executive David Ferguson said the second half of the year had also been strong, with July being its best ever month for inflows, although he admitted that there had been some “inevitable issues” with the technology upgrade.
“We are working hard to get these quickly behind us and we will then be beautifully poised for the next phase of our growth” he said, adding that the figures showed that a “collaboration between like-minded advisers can have a real and sustainable impact”.
“I remain hugely excited by the future possibilities for the business. Our new technology represents a major milestone for us and paves the way for rapid future enhancement. Importantly, our latest financial results mean that we can invest even more in proposition and technology upgrades from a very strong financial base.”
Ferguson said platforms were playing an increasingly important role in advisers’ day-to-day business and the recent regulatory changes in the retirement market would drive further demand. Nucleus has grown from a three-man team in a serviced office basement to a headcount of more than 115.