Nucleus Financial Group PLC Q2 2021 AUA update (4330F)

TIDMNUC

RNS Number : 4330F

Nucleus Financial Group PLC

16 July 2021

16 July 2021

Nucleus Financial Group plc

('Nucleus' or the 'Company')

Q2 2021 AUA update

Assets under administration increase 19% year-on-year to approach GBP19bn

Nucleus (AIM: NUC), a leading independent wrap platform provider, today publishes an update on its assets under administration (AUA) in respect of the three months to 30 June 2021.

The Company continues to grow AUA, which rose to GBP18.9bn as of 30 June 2021, up 19.2% year-on-year and 5.1% on the previous quarter. By comparison, the FTSE All-Share Index increased 17.7% year-on-year and by 4.8% on the last quarter.

Q2 highlights

   -       Gross inflows of GBP578m were achieved in Q2 2021, a 50.5% increase on Q2 2020. 
   -       Net inflows were GBP193m up 17.0% against Q2 2020. 

- Advisers actively using the platform increased by 0.5% in Q2 2021 compared to the previous quarter and by 2.6% year-on-year.

- Customer numbers increased by 1.0% in Q2 2021 compared to the previous quarter and by 2.9% year-on-year.

- Investment in the platform proposition continued throughout Q2 with the introduction of next day payments ensuring faster withdrawals and income payments for clients; new adviser access to our client portal, Nucleus Go through 'Adviser View'; and the introduction of near real-time platform reports ensuring data reported from the platform is as up to date as it possibly can be, only minutes behind core platform transactions.

- Following the acquisition of the relevant assets of OpenWealth in December, a new Glasgow office was opened in May for our new Nucleus colleagues.

- The James Hay takeover offer received shareholder acceptances in excess of 94% and was declared unconditional as to acceptances. The change in control application is currently pending approval from the FCA.

AUA and inflows

 
                      Quarter ended   Quarter ended   Quarter ended 
                       30 June 2021    30 June 2020        31 March 
                                                               2021 
                               GBPm            GBPm            GBPm 
                                     --------------  -------------- 
 Opening AUA                 17,959          13,986          17,415 
 Inflows                        578             384             637 
 Outflows                     (385)           (219)           (336) 
 Net flows                      193             165             301 
 Market movements               717           1,674             243 
 Closing AUA                 18,869          15,825          17,959 
 Daily average AUA           18,480          15,112          17,696 
                     --------------  --------------  -------------- 
 

David Ferguson, Nucleus' founder and CEO, commented:

"The first quarter of 2021 was incredibly strong for new business activity, and it was pleasing to see inflow momentum continue throughout Q2 and to reach GBP19bn of AUA following the quarter end. It was a particularly resilient performance given the ongoing uncertainty of the takeover process and reflects the ongoing achievements and fortitude of our people along with our commitment to continually improving the core platform proposition for our users."

Historical flows and AUA data by quarter

 
              Q2       Q3       Q4       Q1       Q2       Q3       Q4       Q1       Q2       Q3       Q4       Q1       Q2 
               2018     2018     2018     2019     2019     2019     2019     2020     2020     2020     2020     2021     2021 
              GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm     GBPm 
-----------  -------  -------  -------  -------  -------  -------  -------  -------  -------  -------  -------  -------  ------- 
 Opening 
  AUA         13,527   14,339   14,693   13,884   14,753   15,332   15,697   16,141   13,986   15,825   16,103   17,415   17,959 
 Inflows         600      563      462      466      488      490      497      580      384      373      492      637      578 
 Outflows      (285)    (281)    (277)    (332)    (377)    (379)    (344)    (312)    (219)    (291)    (284)    (336)    (385) 
 Net flows       315      282      185      134      111      111      153      268      165       82      208      301      193 
 Market 
  movements      497       72    (994)      735      468      254      291   (2423)    1,674      196    1,104      243      717 
 Closing 
  AUA         14,339   14,693   13,884   14,753   15,332   15,697   16,141   13,986   15,825   16,103   17,415   17,959   18,869 
 Daily 
  average 
  AUA         14,086   14,585   14,202   14,399   15,047   15,552   15,704   15,636   15,112   16,041   16,739   17,696   18,480 
             -------  -------  -------  -------  -------  -------  -------  -------  -------  -------  -------  -------  ------- 
 

Ends

For further information please contact:

Nucleus

   David Ferguson, CEO                                                     Tel: [phone] 

Stuart Geard, Chief Financial Officer

Shore Capital (Nominated Adviser and Broker)

Hugh Morgan Tel: [phone]

Edward Mansfield

Daniel Bush

Camarco (Media enquiries)

Jennifer Renwick Tel: [phone]

Jake Thomas

Notes to Editors

About Nucleus

Nucleus is a wrap platform founded in 2006 by advisers committed to altering the balance of power in the industry by putting the customer centre stage. It provides independent wrap platform services to over 1,450 active adviser users and works with more than 850 financial adviser firms as of 30 June 2021. It is responsible for AUA of GBP18.9bn on behalf of more than 102,000 customers.

The multi award-winning platform offers a range of custody, trading, payment, reporting, fee-handling, research and integration services across a variety of tax wrappers and more than 6,500 asset choices including cash, OEICs, unit trusts, offshore funds, structured products and listed securities, including ETFs and investment trusts. The platform currently facilitates over 1.1 million customer account transactions on average per month.

Nucleus has been awarded CoreData's 'Best medium sized platform' for 2020 (and the last nine years). It has also been awarded a 5-star service rating at the 2020 and 2019 Financial Adviser Awards, the Schroders 'Platform of the Year' award for 2016, 2017 and 2018 and won 'Best Platform' and 'Platform Innovation' at the 2018 Money Marketing Awards.

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July 16, 2021 02:00 ET (06:00 GMT)