Platform Alliance Trust Savings has reported a £19m operating loss for 2017, as its parent company has reduced the value of its investment in the business.
ATS has also reduced the value of the intangible assets related to its execution only platform Stocktrade, which resulted in a £13.2m exceptional charge.
ATS moved that business from Edinburgh to Dundee in the first half of last year.
In its annual results statement today, ATS’s parent company Alliance Trust admits moving that service led to bad customer service and an increase in complaints from customers. It says it incurred costs in the second half of last year addressing these issues.
ATS’s replatforming project was also delayed during the second half of last year. The company was expecting this project to increase revenues.
ATS reported an operating loss of £6.1m for 2017, before exceptional items, which includes £3m of costs to “stabilise” the business. In 2016, ATS reported an operating profit of £1.2m.
According to the results statement, the directors’ value of Alliance Trust’s investment in ATS has been reduced to £38m from £61.5m in 2016.
ATS ended 2017 with assets under administration of £15.8bn, compared to £13.6bn in 2016.
The results say: “Investment in customer service is continuing in 2018, ATS is now experiencing a reduction in complaints and an improvement in service levels.”
In June last year, Money Marketing reported ATS had apologised to advisers after they complained about delays, missed income payments and poor communication during ATS’s replatforming project.