Ferguson takes firm public
Scottish wrap platform Nucleus confirms AIM IPO
David Ferguson: founded company (pic: Terry Murden)
Nucleus Financial Group, the Edinburgh-based financial adviser wrap platform, has confirmed that it will float on the London Stock Exchange.
Shares are expected to commence trading on the Alternative Investment Market at the end of this month. It is understood the company will be valued at about £150 million.
The intention to float, which was reported by Daily Business on Friday, will earn a paper fortune for CEO David Ferguson who founded the company in 2006. The majority shareholder is South Africa-based Sanlam.
Nucleus provides independent wrap platform services to more than 2,200 adviser users across more than 800 financial adviser firms and is responsible for assets under administration of £14.3 billion on behalf of more than 90,000 customers.
Daily Business report on Friday
The platform offers a range of custody, trading, payment, reporting, fee-handling, research and integration services across a variety of tax wrappers and asset choices including cash, OEICs, Unit Trusts, offshore funds, structured products and listed securities, including ETFs and investment trusts.
Shore Capital is acting as nominated adviser, sole bookrunner and broker to the company and Craven Street Capital is acting as financial adviser.
The group’s profit before tax has grown from £0.03 million in the year to 31 December 2012 to £5.1 million in the year to 31 December 2017, with year-end cash balances growing from £3.4 million to £17.0 million in the same period.
Mr Ferguson, a Treasury Fintech Envoy for Scotland and the chairman of FinTech Scotland, said: “We started this business in 2006 to create value through greater strategic alignment of advisers and their clients.
“Our commitment to this goal drives the development of our award-winning platform and has enabled us to grow from AUA of £100 million in 2007 to more than £14.3 billion today.”
“Nucleus has been an exciting journey so far and we expect this Admission to AIM to mark an important milestone in the business’s maturity and to open up new opportunities for us.
“We remain committed to keeping adviser / client alignment and transparency at the heart of what we do and to continue developing a market-leading platform and best in class customer service to deliver on our objectives.”
Angus Samuels, chairman, added: “Nucleus is a business that has been built in collaboration with advisers and we are proud to be embarking on the next stage of the company’s development together.
“This is an exciting moment for the business and one we could not have achieved without the support of our dedicated team and community of supportive adviser users. We are looking forward to life as a listed company and the opportunities that lie ahead of us.”