Nucleus profits increase 92%

Nucleus profits increase 92%

Platform Nucleus’ profits have risen 92 per cent from the same period in 2014.

Profits have grown to £4.8m this year against 2014’s figure of £2.5m, and assets under administration reached £9.3bn, up 16 per cent from £8bn in 2014.

According to Nucleus, the profit before tax includes a non-recurring contribution of £1.2m towards the cost of a change in operating model. Excluding this amount, pre-tax profit would be £3.6m for 2015.

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Additionally, the firm’s turnover increased to £29m over 2015, a 21 per cent increase on the £24m reported for the previous year.

The platform reported gross inflows for the full year totalled £2bn, up 5 per cent from £1.9bn in 2014.

Doug Heron, chief financial officer of Nucleus, said profit measures are only one part of the company’s scorecard.

He said: “In trying to build a successful, durable business we are also investing heavily in our product and in our people.

“We’re investing more than ever in our proposition through 2016 as we remain focused on creating the leading adviser wrap in the UK.

“As the business has matured so has our confidence in investing for the long-term. That means we can be less driven by short-term profitability and more by longer-term value creation.

“The UK platform market looks set to see considerable change in identity for some of the participants through either sale, closure or a move to a vertical model but we don’t tend to get distracted by what others are up to.”