Cofunds profits surge to £8m

Cofunds has announced pre-tax profits of £7.9m for 2010 compared with £0.1m in 2009.

Profits reached £20.2m due to a £12.3m tax credit. The firm also grew its assets under administration by 34 per cent from £22.7bn to £30.3bn. Turnover increased by 36 per cent to £61.3m from £45.2m.

Cofunds interim chief executive Charlie Eppinger says: “2010 was a terrific year and a very profitable year.”

The firm expects incoming chief executive Martin Davis to take up his new role in July.

In February, Cofunds ann-ounced it will power’s executiononly investment service, giving customers access to the Cofunds investment Isa and its range of 1,500 funds.

Yellowtail Financial Planning managing director Dennis Hall says: “It has taken Cofunds a long time to get into profitability but these figures will make good reading for them.

“Its results are still a long way from Hargreaves Lansdown’s profit and Cofunds will need to make sure that the proposition is good going forward.”