7th Apr 2020 11:47
(Alliance News) - Online investment platform Nucleus Financial Group PLC on Tuesday reported a rise in profit in 2019 but has suspended its 2019 final dividend.
In 2019, pretax profit rose to GBP7.0 million from GBP5.7 million in 2018.
Revenue was up 4.3% year-on-year to GBP51.5 million from GBP49.5 million, while net revenue grew 4.8% to GBP45.2 million.
At December 31, assets under management stood at GBP16.14 billion, 16% higher than the GBP13.88 billion seen at the same point a year before.
Net inflows totalled GBP509 million, while market movements added GBP1.75 billion in assets.
Nucleus upped its number of active adviser by 3.3% in 2019 to 1,442, as customer numbers grew 3.4% to 96,857.
"2019 was a challenging year for most UK financial services businesses as a result of the much trailed political and economic headwinds, particularly surrounding Brexit. Despite this, we made good progress over the year with growth across most of our key financial metrics, including AuA, revenue, profit after tax, customers and advisers," Founder & Chief Executive David Ferguson said.
Looking ahead, Ferguson said the company faces a "new challenge" in the coronavirus outbreak.
He continued: "The outlook is impossible to predict, but I can say that we remain open for business, and cash generative each day.
"Our platform is fully operational and all of our people are successfully working remotely with no impact on service. We are in continual dialogue with our users and our material service providers and I consider our operations to be resilient, recognising that our user experience remains reliant (as ever) on the performance of many of the interconnected parties that comprise the overall financial system."
But, due to the uncertainty, Nucleus has suspended its final dividend for 2019.
"While this would typically be considered an unusual decision, we are in uncharted waters, and I believe it to be the correct course of action at this stage," Ferguson said.
By the end of the first quarter of 2020, assets under management had fallen to GBP14.0 billion from the GBP16.1 billion at the end of December.
The recent three-months benefited from a 100% year-on-year rise in net inflows - boosted by the positive momentum following the UK general election in December - but market movements shaved GBP2.4 billion off assets.
Ferguson said: "Inflow momentum has eased off in the last couple of weeks as the Covid-19 situation has developed. Reiterating the point above, it is too early to form a view on what the impact may be on the financial performance of the business over the full year."
Shares in Nucleus Financial were 8.1% higher in London on Tuesday at 134.00 pence each.
By Paul McGowan; [email protected]
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