True Potential  

True Potential sees ‘record growth’ with £132mn profit

True Potential sees ‘record growth’ with £132mn profit
Daniel Harrison, chief executive of True Potential

True Potential has seen “record growth” after its profits grew by 80 per cent to hit £132mn.

According to its annual results, the wealth manager said turnover growth was 52 per cent, coming in at £281mn for 2021.

True Potential said its growth was down to long-term investment in technology and hybrid advice models. 

It explained that this has attracted large numbers of financial advisers and investors to the platform since the beginning of the Covid-19 pandemic.

Chief executive, Daniel Harrison, said: “This set of results prove that digitally driven hybrid advice is the only way to run a high-growth financial services business in a post-pandemic world. 

“I’m particularly pleased to see our impulseSave technology attracting smaller savers and investors who have often been excluded from the industry because of the exorbitant minimum deposit limits set by traditional providers. 

“Millions of people in this country crave the services of real financial experts and with the cost-of-living crisis showing no sign of abating, we will continue to reach these people with our pioneering technology”.

In August, True Potential reported its assets reached £18.6bn, despite the Covid-19 pandemic.

At the time, it said assets hit £17.3bn by the end of the first half of 2021 and had since grown to £18.6bn.

In this latest set of results, True Potential said 2021 saw assets on the firm’s in-house investment platform increase, now standing at more than £22bn.

A further 271 advisers joined the wealth manager in 2021 and it said a fifth of the UK’s financial advisers are employed by True Potential or use its technology.

True Potential said its impulseSave technology, which allows investors to open or top up their pensions and investments from £1, also saw continued growth. 

In total, £206mn was invested through impulseSave in 2021, with 30 per cent of these top-ups being under £50.

In September, the firm sold a majority stake of its business to private equity firm Cinven for an undisclosed sum.

In a statement at the time, the firm said the investment will enable True Potential to continue its double-digit growth and develop its investment technology platform.

Chairperson David Harrison, said: “I have always approached business with an anti-fragile mindset. In other words, I believe in building organisations and working with people who grow stronger in stressful and difficult circumstances.

“True Potential’s success during the pandemic vindicates this approach, which has been achieved through years of investing in and building our own proprietary technology and hybrid advice models. These impressive results, combined with Cinven’s recent investment, will allow us to continue investing in our successful business model”.    

sonia.rach@ft.com

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