Nucleus Financial has debt situation all wrapped up after a 'pivotal' year

NUCLEUS Financial Group, the Edinburgh-based "wrap" platform operator owned by independent financial advisers (IFAs), has narrowed its operating losses from £2 million in 2009 to £1.7m in 2010.

Wrap platforms allow IFAs to manage all of a client's investments using a single piece of computer software.

Nucleus, which was founded four years ago, reported a 133 per cent jump in revenue to 5.6m as more IFAs signed up to use the service.

Assets under administration by the firm more than doubled to 2.2 billion by 31 December and have since rise to 2.6bn.

Chief executive David Ferguson branded 2010 as a "pivotal" year for the business, which raised 15m through a rights issue with its 80 owner-IFAs, who together have more than 1,000 staff using the platform.

Ferguson said the cash raised had been used to invest in operational infrastructure and to pay off loans, leaving the group debt-free on 31 December with 4.4m in cash reserves.

He added: "These results not only demonstrate the financial efficiency of our model but also position us favourably to achieve break-even on a sustainable basis later this year.

"We are already enjoying the benefits of a much stronger balance sheet following a hugely successful rights issue and will continue to use this improved strength to make the necessary investments that will ensure we fulfil our considerable ambitions over the coming months and years."