EDINBURGH-based financial technology company Nucleus Financial, saw its pre-tax losses narrow to £1 million last year as the firm took a £100,000 hit from resolving historic administration errors.
Nucleus was founded five years ago to provide "wrap" services to financial advisers allowing them to manage all a client's investments using a single piece of computer software.
Nucleus saw turnover soar 75% to £9.7m in the year to December 31, according to accounts filed with Companies House.
As inflows rose 22% to £1.4 billion, assets under administration on the platform grew from £2.2bn to £3.2bn.
This translated into a pre-tax loss of £966,000, against £3.3m for 2010.
The company had hoped to break-even last year but, like the rest of the financial services sector, was assailed by volatile financial markets.
Chairman Paul Bradshaw said: "These results are judged satisfactory within what was a difficult market environment and recognising the significant growth investments made.
"The resilience of the business model is well illustrated by the fact that monthly net inflows varied only between £79m and £144m in a year when market turbulence appeared almost normal."
The company said the number of advisory firms using its services had increased from 276 to 369 over the year and of these some 38 had overall clients assets exceeding £20m invested.
Last year, Nucleus revealed it had discovered administrative errors dating back to 2007 and 2008 that had resulted in the mis-reporting of client holdings. There had been fears that the value of the errors could be up to £800,000 but Nucleus's latest accounts showed that the actual cost to Nucleus in the end was less than £100,000.
The highest-paid executive at the company, assumed to be chief executive David Ferguson, saw his remuneration rise 57% to £266,000.
Nucleus, which is majority owned by financial advisory firms, estimates that it took 14.3% of net inflows into the wrap sector during the year, where it competes with the likes of giant Edinburgh insurer Standard Life, Axa and Transact.
Mr Bradshaw said: "With competitors willing historically to gamble (and often lose) huge sums on unproven developments, our market proximity is perhaps our key strategic advantage."
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