Robo-adviser Wealthsimple UK has posted growing losses for another year but its directors maintain they are satisfied with the company's growth.
The online investment service, which launched to the UK market in September 2017, announced a loss of £3.6m for 2018 in its latest annual results - compared with a loss of £2.3m the year before.
The losses were despite an increase in revenue from management fees, which grew from £696 in 2017 to £44,350 last year. The unusually small revenue figure in 2017 was a result of the Canadian business launching to the UK four months before the end of the financial year.
The robo-adviser more than doubled its monthly average number of employees last year to 9, up from 4 in 2017 and inclusive of directors, and spent £1.3m on employment and pension costs.
Wealthsimple said the key indicators of its success were its client base and assets under management, which jumped 567 per cent and 908 per cent respectively year on year as a result of "strategic and effective marketing investment".
The company said: "The combination of investment in infrastructure, user experience, customer acquisition and development of online financial advice warrants that business operations will scale cost-effectively to deliver long-term profitability together with quality customer service, experience and value."
The robo-adviser said its directors were so far satisfied with the growth of the business going into 2019 and do not anticipate the effects of Brexit having a "material impact" on the business.
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