NUCLEUS Financial has recorded a big increase in the funds it administers after benefitting from the recovery in stock markets in the second quarter.

The Edinburgh-based financial technology firm saw the value of the funds that people administer using its online platforms plunge amid sharp falls on equity markets earlier in the year as the coronavirus crisis intensified.

READ MORE: Coronavirus and oil price war trigger 'Black Monday' for markets

However, the company said yesterday that assets under administration increased by 13.1 per cent in the quarter to June 30, to £15.8bn.

Chief executive David Ferguson said: “We continue to make very good progress across the business despite the lockdown and have continued to invest in the proposition.”

Nucleus has recruited 12 new employees since the lockdown started. It has around 250 employees.

The company had £16.1bn assets under administration at the start of the year.

Market movements accounted for £1.7bn of the net £1.8bn increase in assets under administration in the latest quarter.

READ MORE: Markets close higher after EU rescue package sparks positive sentiment

These were driven by increases in stock indices, which followed moves by central banks to pump liquidity into the financial system. The easing of lockdown measures around the world has also helped boost activity.

Market movements knocked £2.4bn off the value of assets under administration in the first quarter.

Nucleus has managed to win more business from investors amid volatile conditions.

READ MORE: Financial services firms warned to adopt new technology fast or face death spiral

The company achieved net inflows of £165m in the second quarter, up 48% from £111m in the same period of the preceding year. Total net inflows in the first half increased by 77% year on year to £433m.

The number of customers whose funds are administered on the firm’s platforms increased by 4.3% year-on-year in the second quarter, to 99,797. They rose above 100,000 early this month.