Cash-clever adviser platform Nucleus pays first dividend to shareholders

Adviser built platform Nucleus has paid its first dividend to shareholders after clearing all of its liabilities and building a cash reserve.

Nucleus is only the second adviser built wrap platform in the UK to pay dividend to shareholders. The company said in a statement that it saw assets under administration (AUA) hit £11.4bn and the business deliver a 21% increase in profits and a 15% uplift in turnover during 2016.

Paid on 18 August, the £4.3m dividend equates to a payment of £2.43 per ordinary share and has been distributed to the business’ ordinary shareholders.

The company’s first dividend reflects a yield of 4.8% and is a mix of an ordinary profit based dividend and a one-off distribution of historic surplus reserves, the company said.

Launched in 2006, Nucleus has been debt free for the past five years has seen cash reserves build to over £15m, despite heavy investment into new technologies and difficult market conditions.

As reported, the company announced in June that it was to substantially reduce charges for clients with portfolios in excess of £500,000 from 1 July.

Major milestone

David Ferguson, founder and CEO of Nucleus, said: “This is another major milestone for Nucleus and one I am hugely proud of. Not only is it testament to the strength of the underlying fundamentals of the business, but also the passion, dedication and hard work of every single person who has been involved over the past eleven years.

“Nucleus is better positioned than ever before to take advantage of the significant growth opportunities in the platform sector. We believe we are poised to accelerate this progress even further by remaining fully committed to investing in next generation technology and enhancing a platform proposition that has been designed hand in hand with advisers, to the benefit of them and their clients.”

Nucleus added that last year’s positive figures have been carried into 2017 with half year results showing gross inflows up by 44.8% to £1.3bn and AUA up by 28.0% to £12.8bn, resulting in an increase in revenue of 26.5% to £19.5m.

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Gary Robinson
Deputy Editor, International Investment and Head of Video at Open Door Media Publishing. A fully qualified journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as an IFA.

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