Wrap firm Nucleus reports 140 per cent profit hike

Edinburgh-based financial “wrap” provider, Nucleus, has this week posted its best-ever first-half results, with operating profit swelling by 140 per cent year-on-year to reach £2.4 million.

The company, which was founded in July 2006 by founder and chief executive David Ferguson and a team of seven adviser firms, also reported that turnover has increased by 33 per cent to £14.8m over the same period.

Gross inflows were up by 5 per cent on the year-ago period to about £1 billion, and the platform also pointed out that it added more than £1bn of new assets in the first half.

Total assets under administration (AUA) at 30 June were up by 22 per cent from 12 months previously to reach £8.8bn.

Nucleus, which describes itself as an adviser-owned platform providing general, Isa, pension, onshore and offshore bond accounts for investors, and founded with an aim to “democratise” financial services, now has a user community of more than 400 adviser practices across the UK.

David Ferguson said the results come “against a backdrop of turmoil in our sector, with large-scale corporate withdrawals from the UK sitting alongside confirmed takeovers and rumoured sales” are “further validation of the strength, value and absolute relevance of our business model”.

Looking at the first-half results, he said they “only sharpen our focus to accelerate the momentum of our development programme and to move into 2016 delivering ever-improving service levels for our users”.

He also noted that last week the firm launched its new portfolio planning tool, and is “committed to investing even more in our core platform proposition and with our H1 results and new technology foundation set, we’re massively excited about this springboard to an even brighter future”.