Nucleus doubles profit as it eyes replatforming rivals’ clients
Edinburgh-based wrap platform provider Nucleus has seen its post-tax profit double in its first results as a listed company.
The company reported profit after tax of £2.2m in the six months to 30 June 2018, compared with £1.1m in the first half of 2017.
Assets grew 15.6% year on year from £12.4 billion to £14.3 billion, while the number of advisers using the platform also grew to 1,357, compared to 1,266 in the first half of 2017. Customer numbers reached 90,650, up 5.9% on the first half of 2017.
“The growth in AUA and the number of active advisers, two of our key performance indicators, show that our adviser users continue to share our ambition of promoting transparency and improving customer outcomes,” Nucleus chief executive David Ferguson said in a statement.
As profit grows, Nucleus has its sights set on attracting clients from rivals that are undergoing difficult replatforming projects.
Aviva and Aegon have been undergoing replatforming projects that have given problems toadvisers. Royal London-owned Ascentric also created a few problems for clients when it completed the first stage of its move to Bravura’s Sonata technology, the same system Nucleus moved to in 2014.
Old Mutual Wealth and Fidelity FundsNetwork are also planning to change technology systems in the near future.
The business also reported a 14% drop in net inflows.. However, the firm has declared an interim dividend of 1.4 pence per share payable in October.
Nucleus floated on the Alternative Investment Market with a market capitalisation of £139.9m in July.
Nucleus is a software platform where financial advisers can give clients online access to a range of investments in one place.