PlatformMay 11 2017

Nucleus sees profits increase 21 per cent

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Nucleus sees profits increase 21 per cent

Nucleus has posted profits before tax of £4.3m for 2016, up 21 per cent on the previous year.

Assets under administration reached £11.4bn, up 23 per cent on the end of 2015.

Net inflows were £1.1bn, which was a slight dip on the previous year’s flows of £1.3bn but Nucleus said this was in line with the decline across the advised platform market.

David Ferguson, founder and chief executive of Nucleus, said the platform’s financial performance would allow it to cut prices from 1 July.

He said: “We’ve seen very positive momentum kick in in terms of inflows in Q4 2016 and I’m really pleased to say that this has continued strongly into the first quarter of this year with net inflows up 77 per cent.

“Our improved scale and increased profit has allowed us to reduce prices for clients with larger portfolios as we announced earlier this year.

“This will come into effect from 1 July and this has already generated a substantial volume of new enquiries.”

He added that Nucleus would be making further investments into the platforms core technology, focusing on usability.

Nucleus’s turnover increased to £33.3m over 2016, a 15 per cent rise on the previous year.

Net inflows improved sharply in Q4 2016, increasing 27 per cent on the previous quarter as the effects of political and economic uncertainty subsided.

This continued into the first quarter of 2017 with record inflows and a 77 per cent uplift year on year at £452m.

damian.fantato@ft.com