Financial and technology services group True Potential has grown turnover by 61 per cent and almost doubled its profits as users flock to its innovative investment technology.
The firm registered annual turnover of GBP44.4m in the year ended 31 December 2014, up from GBP27.5m in 2013, as profits climbed by 98 per cent to GBP10.5m in the period. The group’s cash balance also increased by 616 per cent to GBP4.1m and net assets grew by 423 per cent to GBP6.8m.
The latest annual report from the True Potential group also shows that the firm’s investments arm, True Potential Investments, registered 184 per cent profit growth to GBP5.4m. The True Potential’s Wealth Platform now has GBP3bn assets under management, an increase of GBP1bn in 2014 alone.
These results have been driven in part by the success of impulseSave, the online service that enables savers to add as little as GBP1 to their own investments as they work towards their savings goals.
It is the first UK service that allows micro-payments to be transferred directly into investments at the touch of a button – and figures suggest it has helped to transform thousands of spenders into savers.
The product was launched in March 2014 and has facilitated the investment of more than GBP8m worth of funds, with over a third of transactions being under GBP10.
The group continues to work with close to 20 per cent of all financial advisers and latest figures show that True Potential Adviser Services firms had GBP67bn worth of assets at the end of 2014.
Neil Johnson, senior partner at True Potential LLP, said: “These results support our belief that technology holds the key to delivering modern wealth management to today’s clients. With a cultural shift in the UK to self-reliance when it comes to saving for retirement, it is technology like impulseSave® that can make the difference to people’s futures.
“Last year we also saw the announcement by the Chancellor of the biggest changes to personal pensions I’ve seen in my lifetime. Thanks to our innovative and award-winning technology, we’re perfectly placed to take full advantage of the changes. With our own pension, ISA, Wealth Platform, distribution network and in-house technology, we have the capability to react at speed to market changes and develop truly unique offerings for advisers and clients. At True Potential, we are helping to create a better future for all our clients.”
Other 2014 highlights for True Potential include being one of only 67 UK businesses to feature in the Deloitte Technology Fast 500 EMEA, a ranking of the fastest-growing companies in Europe, the Middle East and Africa.
It was also ranked as the fastest growing financial and technology services company headquartered outside London in the 2014 Deloitte Technology Fast 50. The rankings are based on percentage revenue growth over the last five years. True Potential grew 837 per cent during this period.
Meanwhile, in September, impulseSave was showcased alongside the world’s biggest innovations in financial technology at FinovateFall 2014. True Potential was just one of five UK-headquartered companies to make it through the rigorous selection process.
impulseSave also won the Aberdeen UK Platform Awards 2014 Leading Innovation Award, while True Potential was named ‘Best Support Service’ and ‘Best Use of Technology by an Adviser’ at the 2014 Money Marketing Awards. Last year it also picked up the 2014 Citywire Advisers’ Choice Platform Award. Meanwhile True Potential Investor was awarded ‘Best New D2C Platform’ at the Professional Adviser awards and the firm was also highly-commended in 'Best Platform for Restricted Advisers' category.
Among other highlights of 2014 was the addition of a new auto enrolment system to True Potential Investor, which is designed to help busy employers and accountants manage auto enrolment as efficiently as possible. A new financial adviser sales process system was also introduced to True Potential’s Wealth Management Partners division.
At the end of 2014 True Potential employed 137 staff across the group, with 47 of them partners in the business and seven new apprentices joining the company during the year.