Nucleus reports 33% profit jump
Nucleus Financial Group has hailed a strong full-year performance as profits jumped 33% in 2018 despite a "challenging market environment".
The Edinburgh-based fintech, which floated on the Alternative Investment Market in July, reported adjusted earnings before interest tax, depreciation and amortisation (Ebitda) of £8.3m. These profits were up 33% from £6.2m in 2017.
The wrap platform ended 2018 with assets under management of £13.9bn, up 2.3% from the previous year. It also saw its net revenues rise by 9.6% to reach £43.2m. Revenue climbed to £49.4m, up from £45.5m in 2017.
It was pleasing to see growth across most of our key performance indicators in the year, including growth in AUA, revenue, profit, customers, accounts and advisers using the platform"
Nucleus' chief executive David Ferguson (pictured) said the results were positive given a number of challenges facing the platform market.
"It was pleasing to see growth across most of our key performance indicators in the year, including growth in AUA, revenue, profit, customers, accounts and advisers using the platform," Ferguson said.
"Despite the sector headwinds in the latter half of the year, we view the market outlook as positive for better quality advisers and those that provide services to those advisers and we are confident in our ability to deliver on our future plans."
Ferguson added the platform is planning to "substantially accelerate our product development through 2019 and beyond" following an upgrade to its Sonata technology at the end of 2018.
The fintech, which has developed software platforms that enable financial advisers to provide online access to clients for investments across ISAs, pensions and bond accounts, enjoyed a 6% increase in the number of active advisers to almost 1,400.
Following the results the platform's board recommended a final dividend payment of 3.6p per share, amounting to a total of £2.7m.
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