Nucleus Financial reports net revenue growth of 9.6%

David Ferguson
David Ferguson

Nucleus Financial Group Plc, an independent wrap platform provider has  announce its audited annual results for the year ended 31 December 2018.

Net revenue grew by 9.6% from £45.5m to £49.4m in the year despite volatile markets, with blended revenue yield falling as expected, as a result of the full year effect of the platform fee reduction in July 2017.

Adjusted EBITDA margin grew 20.8% from £15.9m to £19.2m as a result of the operational leverage effect of revenue growth, as well as reduced external platform development expenditure.

A final dividend of 3.6p per share was recommended, taking the full year dividends post-admission to AIM to 5p per share. 2017 dividend included a one-off distribution of accumulated profits.

The company reported a strong balance sheet at the year-end with £17.7 million of cash and no debt.

David Ferguson, founder and CEO of Nucleus, commented:

“We were pleased to end last year having successfully completed two substantial strategic projects. Our July admission to AIM allowed us to mature our capital structure in accordance with our ambitions, and subsequent adjustments to our technology and BPO model have helped position us to become one of the most scalable and technology-led independent platforms in our market.”

“We expect the changes to our operating model to substantially accelerate our product development through 2019 and beyond and this has already been evidenced through a further Sonata upgrade and delivery of a new Junior Isa product in the first quarter following the reporting period.”

“It was also 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. 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.”

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