Nucleus delivers record £5.1m operating profit in 2017

Nucleus, the Edinburgh-based adviser-built wrap platform, has generated an operating profit of £5.1m, a 19% increase on 2016’s profit of £4.3m, for the year ended 31 December 2017.

Assets under administration (AUA) reached £13.6bn at the end of 2017, up 22% from an AUA of £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.

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Gross inflows increased by 41% to £2.6bn as a consequence of improved market sentiment and investor confidence while net inflows for the full year increased by a substantial 72% from £1.0bn to £1.7bn representing a gross/net ratio of 64%.

Revenue increased to £40.4m in 2017, a 21% increase on the £33.3m reported for 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. Our AUA grew 22% to £13.6bn and we are delighted to announce a record operating profit in this, our sixth year of continuous growth in profits.”

“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.”

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