23 Mar 2020 16:40
23 March 2020
Nucleus Financial Group plc
('Nucleus' or the 'Company')
FCA announcement re temporary moratorium on release of preliminary results
Covid-19 and trading update
The Company notes the FCA's guidance on 21 March 2020 requesting that listed companies delay the announcement of preliminary results for at least two weeks due to the challenges caused by the Covid-19 crisis. Consequently, while Nucleus intended to announce its audited results for the year ended 31 December 2019 on 24 March 2020, the Company will observe the FCA's request and will defer the publication of its results.
Further to the Company's announcement on 31 January 2020, the positive inflow momentum from Q4 continued into 2020, and there has been limited impact from Covid-19 on flows to date. To end-February, year to date gross inflows were up 35% and net inflows were up 132% on the equivalent period in 2019, while in March both gross and net inflows continue to be well ahead of the prior year. However, the value of most asset classes has fallen considerably in March, and, as the significant uncertainty continues, it is too early to estimate the impact of the pandemic on Nucleus' performance. Notwithstanding this uncertainty, the group has a robust capital structure and solvency position (with £11.4m of capital in excess of the pillar I minimum regulatory capital requirement), high conversion rate of profit to cash, no borrowings and available liquidity (including £18.5m of cash and cash equivalents at the end of the financial year).
The Company's highest priority is the health and wellbeing of its people, users and customers and it is taking every possible action to adapt to the situation. The Company remains in continual dialogue with users and material service providers. The platform remains fully operational and the vast majority of Nucleus' staff are successfully working remotely with no meaningful impact on service at present.
The Company's performance in respect of the 2019 financial year is expected to be in line with market consensus.
The Company will release a further announcement with regard to the timing of the publication of its audited financial statements as soon as practicable.
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For further information please contact:
Nucleus
David Ferguson, Founder and CEO Tel: +44 (0)13 1226 9800
Stuart Geard, chief financial officer
Shore Capital (Nominated Adviser and Broker)
Hugh Morgan Tel: +44 (0)20 7408 4090
Edward Mansfield
Daniel Bush
Camarco (Media enquiries)
Jennifer Renwick Tel: +44 (0)20 3757 4994
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 1,442 active adviser users and works with more than 880 financial adviser firms as at 31 December 2019. It is responsible for AUA of £16.1bn on behalf of more than 96,000 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 a 5-star service rating at the 2019 Financial Adviser Awards and won CoreData's 'Best medium sized platform' for 2019 (and the last eight years), 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.