Edinburgh’s Nucleus Financial confirms IPO

Nucleus CEO David Ferguson

Edinburgh-based funds platform Nucleus Financial Group Limited on Monday confirmed recent speculation by announcing its intention to apply for admission of its ordinary shares to trading on the AIM market of the London Stock Exchange.

Dealings are expected to commence on AIM in late July 2018. 

Nucleus said it provides “independent wrap platform services to over 2,200 adviser users across more than 800 financial adviser firms” and is responsible for assets under administration (AUA) of £14.3 billion on behalf of more than 90,000 customers as at May 31, 2018.

“The multi-award winning Nucleus wrap platform offers a range of custody, trading, payment, reporting, fee-handling, research and integration services across a variety of tax wrappers and asset choices including cash, OEICs, Unit Trusts, offshore funds, structured products and listed securities, including ETFs and investment trusts,” said Nucleus.

Shore Capital is acting as nominated adviser, sole bookrunner and broker to Nucleus and Craven Street Capital Limited is acting as financial adviser.

Nucleus said its profit before tax “has grown from £0.03 million in the year to 31 December 2012 to £5.1 million in the year to 31 December 2017, with year-end cash balances growing from £3.4 million to £17.0 million in the same period.”

CEO David Ferguson co-founded Nucleus in 2006, growing it from a team of two to more than 200 employees.

Ferguson is chairman of FinTech Scotland

Ferguson said: “We started this business in 2006 to create value through greater strategic alignment of advisers and their clients.

“Our commitment to this goal drives the development of our award-winning platform and has enabled us to grow from AUA of £100 million in 2007 to more than £14.3 billion today.

“Nucleus has been an exciting journey so far and we expect this admission to AIM to mark an important milestone in the business’s maturity and to open up new opportunities for us.

“We remain committed to keeping adviser / client alignment and transparency at the heart of what we do and to continue developing a market-leading platform and best in class customer service to deliver on our objectives.”

Angus Samuels, Chairman of Nucleus, added: “Nucleus is a business that has been built in collaboration with advisers and we are proud to be embarking on the next stage of the company’s development together.

“This is an exciting moment for the business and one we could not have achieved without the support of our dedicated team and community of supportive adviser users.

“We are looking forward to life as a listed company and the opportunities that lie ahead of us.”