Wrap platform Ascentric has posted a loss for 2013 compared with a £1.8m profit in 2012 due to a £1.6m technology upgrade, its results revealed.
For the year to 31 December 2013, the platform’s parent Investment Funds Direct Limited had a £567,000 pre-tax loss, compared with a £1.8m profit the previous year.
The firm spent £1.6m on the ‘Project Accelerator’ technology upgrade, funded by a £2m loan from overseeing parent company Royal London.
In July last year Ascentric outsourced its back office services to technology provider Bravura.
This meant operating profit fell from £2.5m in 2012 to £1.2m in 2013, although assets under administration rose from £5.2bn to £7.3bn at the end of last year.
The platform saw record levels of new business in the 12 month following the introduction of the retail distribution review.
Net inflows for the year were £1.7bn compared to £1.2bn in 2012.
