Adviser platform Nucleus had inflows of £1.9bn last year, up 12 per cent on the previous total, while end of year assets under administration reached £8bn, up 27 per cent from the same period in 2013.
The wrap’s results for 2014 showed that this growth in assets increased turnover by 26 per cent to £23.6m, while operating profits rose by 67 per cent to £2.5m. The business looks after the clients of over 800 adviser firms in total, adding 74 firms during 2014.
David Ferguson, the firm’s founder and chief executive, told FTAdviser that while he does not buy the argument that scale is essential in the platform market, it has helped build profitability.
“Our recently completed technology upgrades have really helped with scaling up, giving a solid foundation for future growth. We’re still relatively small, with 125 people, so I guess the only challenge with building the business is making sure we protect the culture and innovative spirit.”
He added that as they are not burdened by the sunset clause or re-platforming issues, the future looks bright for the firm, adding that “although to be fair, most platforms seem to be winning at the moment compared with pre-packaged providers.”
Doug Heron, Nucleus’ chief financial officer, commented that the new opportunities created by this month’s retirement reforms and RDR continue to benefit advisers, adding that they were “pleased to continue developing our position as a credible market participant”.
Earlier this month the firm developed a specific microsite for advisers wanting to make the most of the pension freedoms.
Mr Ferguson added that the changes have been an “unbelievably big opportunity for advisers” which they are trying to support as much as possible.
peter.walker@ft.com
