PlatformsDec 15 2015

Nucleus eyes investment as profits rise

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Nucleus eyes investment as profits rise

Nucleus is looking to invest more into its adviser-built wrap on the back of adding a further £516m of new assets in the third quarter, to take year to date inflows to £1.54bn, up 4 per cent on the same period in 2014.

Total assets under administration increased by 16 per cent to £8.7bn, from £7.5bn at the same point last year, against a FTSE All-Share decline of 5.6 per cent on the same period.

Turnover increased by 30 per cent to £22.3m for the first half of the year, up from £17.2m in 2014.

This meant an 89 per cent increase in operating profits for the firm, to £3.6m in the first nine months of 2015, including non-recurring credit of £1.2m related to a change in operating model.

On an underlying basis, operating profit was up by 26 per cent from £1.9m to £2.4m.

The platform’s founder and chief executive David Ferguson told FTAdviser the latest figures were particularly pleasing, given the last year or so has seen a transition in underlying technology, several changes to senior staff and the agreement of a new back office administration contract.

“With some deep-pocketed peers calling time on their misadventures and others relying on pushing products to make the numbers add up, platform selection may finally become more focused on long-term sustainability than on historically relevant brands,” he commented.

While he was tight-lipped on the details of “fully funded plans to invest” in the business, Mr Ferguson did state that the last couple of years have been concentrated on laying solid foundations, while the next few years will be “investment into product and proposition”.

He added: “Those with the right business model will start to thrive, while those that don’t will begin to stumble.”