Nucleus inflows up 36% in record first quarter

Nucleus has announced a 113% surge in revenues for the first three months of the year in what was a record quarter for the IFA-owned wrap.

The wrap saw revenues increase to £2,207k during the quarter - an uplift of 113% compared to the same period last year. Assets under administration also increased 15%, taking total AUM to over £2.6bn.

Q1 inflows were £366m - a 36% increase from the Q1 2010 figure of £270m and a 16% rise from the £315m recorded in the fourth quarter.

The first quarter figures come on the back of what founder David Ferguson (pictured) hailed a "pivotal" year for the business.

In 2010, the wrap completed a successful rights issue which generated £15m in new capital and resulted in the group being debt-free with positive cash reserves of £4.4m at the end of 2010.

Ferguson said whereas people may have previously viewed the wrap as a niche provider it is now perceived as a significant player in the sector and its debt-free status means IFAs will regard it as a low-risk proposition.

The number of advisers using the platform has increased to 1,100.

"While the number of IFAs signed up and using the platform continues to grow at an impressive rate it is the level of engagement the IFA group as a whole has with the business that never ceases to amaze me," he said.

"Their enthusiasm is contagious and their backing of the business through the capital raising at the end of last year has enabled us to carry on with our strategy of investing in the team and technology."

Ferguson revealed the wrap is looking to hit sustained profitability in Q3 this year after dipping into profitability in April 2010.

He added the fact some wraps are achieving profitability with single-digit billion AUM figures is helping establish the industry's winners and losers.

"If you cannot break even until you have £20/30bn AUM then that raises questions over your business model."