PlatformsNov 20 2014

Nucleus posts surge in profit to £1.9m

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by

Adviser-built wrap Nucleus has seen gross inflows for the third quarter year-to-date totalling £1.5bn, up 15 per cent from the same period last year and helping to push profits up 46 per cent to £1.9m.

The platform finished Q3 with assets under administration at £7.5bn, up 25 per cent from the same period in 2013. Turnover was up by 25 per cent to £17.2m, leading to a 46 per cent increase in operating profits for Q3 year-to-date.

During the first half of this year the firm undertook its biggest ever technology upgrade, adopting the ‘Sonata’ software from long-term supplier Bravura Solutions, which eventually helped push profits up 85 per cent to £1m.

David Ferguson, Nucleus chief executive, told FTAdviser that the replatforming has not been without its problems over the quarter, but now the Q4 numbers are looking good.

“Being the first to go meant we had to take some pain, it’s effectively a pit stop when service delivery is not so hot, but now we’ve got the building blocks in place for the next few years.”

At the start of this week (17 November) Nucleus announced it would re-hire former chief operating office Andrew Smith as its new chief technology officer from the start of next year. He joins from Axa Wealth Elevate, where he was hired as chief operating officer in September 2012.

The move follows the appointment of Doug Heron as the firm’s chief financial officer in October, joining from Scottish private bank Adam and Company where he had been finance director since 2009.

Mr Ferguson stated that the strengthened team will mean the platform is prepared to drive into next year with growth and innovation.

“We’re pleased to have got such a good team together and I think we’re prepared for the opportunities coming from the pension changes and sunset clause; there’s a lot to go at.

“We’re eight years old now, so no longer a baby, and we’re really starting to show that, entering the top four platforms for net inflows and retaining our position as the second fastest growing UK adviser platform.”