Positive year for platform
Sixth year of profits growth for wrap platform Nucleus
David Ferguson: sixth year of profits growth
Nucleus, the adviser-built wrap platform, has enjoyed a sixth year of profits growth with a record £5.1 million for 2017, a 19% increase on the £4.3m reported in the previous 12 months.
Assets under administration (AUA) rose by 22% to £13.6 billion against £11.1bn at the end of 2016 as a result of a rising equity market and an increase in net inflows over the course of the year.
Gross inflows increased by 41% to £2.6bn while net inflows were up by 72% from £1bn to £1.7bn representing a gross/net ratio of 64%. Revenue increased by 21% to £40.4m from £33.3m in the previous year.
David Ferguson, founder and CEO of Nucleus, commented: “Our focus on attracting long-term net inflows and growing AUA has delivered another year of strong results for Nucleus.
“The advised platform market continues to grow strongly and our audience continues to thrive. We are better positioned than ever before to take advantage of the significant growth opportunities in the platform sector over the coming years.
“We have invested heavily in large-scale infrastructure initiatives over the past three years to lay the foundations for the next stage of our growth.
“I believe we are poised to accelerate this progress even further over the coming year by remaining fully committed to investing in next generation technology and enhancing a platform proposition that has been designed hand in hand with advisers, for the express benefit of them and their clients.”
Stuart Geard, chief financial officer of Nucleus, added: “2017 was another extremely positive year for Nucleus with growth across all of our key metrics.
“At the same time, we have continued to invest in the platform, our proposition, our people, our infrastructure and our servicing capabilities all in line with our longer-term strategy of building a scalable, resilient, secure and sustainable business.”
“Nucleus continues to be strongly cash generative, with a strong balance sheet which enabled the payment of an inaugural £4.8m dividend in the year.”