NucleusJun 7 2018

Nucleus delivers record £5.1m operating profit

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Nucleus delivers record £5.1m operating profit

Nucleus has delivered a record £5.1m in operating profits last year.

The adviser-built wrap platform announced its financial results for the year ending 31 December 2017 today (7 June).

The results showed a 19 per cent increase on 2016's profit of £4.3m.

Assets under administration (AUA) reached £13.6bn at the end of 2017, which was up 22 per cent from £11.1bn at the end of 2016 as a result of a rising equity market and an increase in net inflows over the course of the year.

Gross inflows increased by 41 per cent to £2.6bn as a consequence of improved market sentiment and investor confidence.

David Ferguson, founder and chief executive of Nucleus, said: "Our focus on attracting long-term net inflows and growing AUA has delivered another year of strong results for Nucleus.

"The advised platform market continues to grow strongly and our audience continues to thrive. We are better positioned than ever before to take advantage of the significant growth opportunities in the platform sector over the coming years.

"We have invested heavily in large-scale infrastructure initiatives over the past three years to lay the foundations for the next stage of our growth.

"I believe we are poised to accelerate this progress even further over the coming year by remaining fully committed to investing in next generation technology and enhancing a platform proposition that has been designed hand in hand with advisers, for the express benefit of them and their clients."

The data also found that revenue increased to £40.4m in 2017, which marks a 21 per cent rise on the £33.3m reported for the previous year.

Net inflows for the full year also increased by a substantial 72 per cent from £1.0bn to £1.7bn.

Mr Ferguson, along with Louise Smith, head of current account design for RBS, David Duffy, chief executive of CYBG (Clydesdale and Yorkshire Bank), and Chris Sier, professor of financial technology at the University of Leeds, has been appointed by the government to champion fintech in their regions and supporting its growth.

aamina.zafar@ft.com