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Cofunds losses hit 19.5m

Cofunds made a further loss of 19.5m last year but the platform is upbeat about take-up of its investment bond, which attracted 670m since it launched in April.

The company’s retained losses for its first five years total 120m.

Finance director Andrew Harris says 9bn in assets are held through the platform and revenue was up by 60 per cent to 15m last year from 9m in 2004.

He expects revenue growth to strengthen and exceed 26m next year driven by asset inflows of 1bn a month and a stable cost base.

Harris says the timing of the shift to profitability is in the management’s control but the platform will continue its long-term strategy of focusing on building scale and market share.

He says take-up of the investment bond, launched in partnership with major shareholder Legal & General, has beaten expectations.

Harris says L&G’s unit-linked investment bond took 1.2bn in the first six months of the year so Cofunds has achieved more than half of this figure in its first six months from a standing start.

The investment bond accounts for 30 per cent of Cofunds’ new business, helping drive down its reliance on costly re-registration business, with total new business and re-registered business split 50/50.

Harris says: “We are seeing top-line and market share growth and are controlling our costs and building recurring revenue into the business which our shareholders are comfortable with.”


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