EDINBURGH investment platform Nucleus Financial saw its assets under administration increase by 16 per cent over the first six months of this year despite inflows decreasing when compared with the same period last year.
Total assets invested via the firm rose from £12.4 billion to £14.3bn in the six months to the end of June while the level of new money flowing in via its site fell by 5%, from £1.32bn to £1.27bn.
Read more: Nucleus Financial raises £32m after listing on junior market
Net inflows, which take account of the amount of cash also being withdrawn on the platform, fell further, dropping by 15% from £850 million to £726m.
In the firm’s first set of interim results since it launched on the alternative investment market in July, Nucleus chief executive David Ferguson said the “slight dip” in gross inflows were down to financial advisers and customer sentiment being affected by volatile markets and regulatory changes.
He added that outflows “were in line with expectations”.
Despite the outflows, the number of customers using the platform continued to grow, hitting 90,650 at the end of the period.
The number of financial advisers who use Nucleus to invest their clients’ money also rose, hitting close to 1,400 at the end of June. That represents an increase of 7% year on year.
Read more: Nucleus reports rise in assets as AIM float beds in
Revenues at the business rose by 11% to £21.7m while pre-tax profits more than doubled from £1.4m to £3.1m.
Mr Ferguson said that as the firm had continued the “strong performance” it had shown in 2017, it would be paying an interim dividend of 1.4p, amounting to a total dividend of £1.1m.
Nucleus raised £32m when it floated, some of which will be used to upgrade its technology.
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