Nucleus in £15m issue to pay Sanlam debt
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Nucleus is planning a £15m rights issue to pay back the company’s debt to South African insurer Sanlam.
Founder and chief executive David Ferguson says the fund-raising has been discussed informally for the last 18 months and has secured big shareholder support.
It is expected to be comp-leted by the end of the year and will be funded by all existing shareholders.
Nucleus sought to raise over £3m in a similar fund-raising exercise in June 2009, again to pay back debt to Sanlam.
The IFA-owned wrap has 79 IFA member firms with over £1.9bn in client assets held on the platform.
The move comes ahead of the release of Nucleus’ annual results for the year ending December 31, 2009.
Preliminary figures show the firm made an operating loss of £1.88m for last year but saw a 140 per cent increase in turnover to £2.41m.
Ferguson says: “Nucleus was originally funded by a combination of equity and debt and now is the time to address that with a cash call to shareholders in order to restructure the balance sheet.”
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