CompaniesJun 30 2015

Novia results reveal £271,000 loss

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Novia results reveal £271,000 loss

Online wrap platform Novia made a £271,235 loss last year, after posting almost a £7.65m profit in 2013.

The firm’s 2014 results also revealed a loss before tax of £779,237 - compared to a 2013 pre-tax profit of £7.8m. Revenue also fell in this period to £11.4m from £18.84m.

Submitted business for the year was £943m, which represented an increase of 1 per cent on the £935m achieved in 2013 and helped contribute to total assets under management of £3.01bn at the year-end, an increase of £799m on the prior year total of £2.27bn.

The statement said that profits have fallen by £7.9m on the prior year. “The reason behind this decrease has been the loss of intagroup fees following the termination of the contract with Aegon. Intagroup revenue has fallen from £11.5m in 2013 to £1.3m in the current year.”

At the end of 2013, Aegon UK purchased the stake it did not already own in Novia Investment Services Limited, the joint venture with wrap provider Novia that was set-up to build and administer the Aegon workplace retirement platform in 2011.

Furthermore, Novia’s results revealed that fees generated by its core operation of platform administration have grown 35 per cent over the year to £10m in 2014.

Bill Vasilieff, Novia’s chief executive, said: “Against the 35 per cent increase in underlying revenues, costs have been held under control with a 13 per cent increase year on year to £13m.

“The increases are driven by increased headcount for servicing the existing book of business and increased licence fees for the platform reflecting the increased assets.

He added: “Increased revenue and firm cost control have ensured the underlying business, whilst showing an overall loss of £300,000 after depreciation and deferred tax, remains in line with plan and puts Novia on course for a profitable 2015.”

ruth.gillbe@ft.com