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Novia swings back into profit

Novia swings back into profit

Novia Financial has reported increased profits of £823,000 for 2015, after recording a loss the year before.

In 2014 the platform was down £271,000 following the loss of intragroup fees because of the termination of its contract with Aegon.

Assets under administration grew by 24 per cent last year to £3.8m, while revenues grew by 35 per cent to £13.5m.

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According to its results for the year to 31 December 2015, this was because of an increase in fees generated by the platform.

“This year on year uplift has been the result of strong sales and annual recurring management charges on the underlying assets under administration,” read the report.

“The main reason behind this increase [in profits] has been the growth in Novia’s core operational revenues.”

Fees generated by Novia’s platform grew by £3.5m during 2015.

Meanwhile Copia Capital Management, the company’s in-house discretionary fund manager, saw its assets under administration increase by 58 per cent.

Novia’s chief executive Bill Vasilieff said the future for Copia looked bright, with the DFM reaching its three-year milestone in autumn 2016.

“This three-year performance history will make the proposition considerably more attractive to a number of investors and advisers and as such the directors have ambitious expectations of the future of this business unit,” he stated.

Mr Vasilieff added that Novia Financial received a £1.5m share in the new business of Novia Global, the newly formed entity launched for international markets.

He said: “Still in the early stages of operation, Novia Global seeks to bring the benefits of the latest in online wealth management technology to the key international markets.

“Whilst market sentiment remains uncertain, with investors generally cautious of taking investment opportunities, the directors remain conservative in their optimism around the future growth of the business.”