The figure compares with a £2m loss in 2007. In its financial results for 2008, Cofunds recorded £14.6bn of assets under administration at the end of December, which has since risen to £15bn. The £400,000 operating profit excluded a £3.6m gain through its long-term incentive scheme for senior managers, which varies depending on the value of the business.
Last year, Cofunds excluded a £9.2m loss made through the incentive plan from its headline £12m loss because it does not deem it to be an operational cost.
Chief executive officer Brett Williams says: “To achieve profitability in a difficult year is a really significant achievement. “We are continuing to invest in the platform, with different pricing options and we will add unbundled pricing as an option.”
Finance and Technology Research Centre director Ian McKenna says: “It has taken Cofunds a very long time to get to profit but, as a market innovator, they, with others, clearly had to change adviser behaviour.”