Cofunds reports 83% rise in profit but misses revenue target

Cofunds has reported an 83 per cent increase in pre-tax profits to £7.7m, but says its revenue was less than expected. 

In its annual results for 2014, the platform reported a surge in pre-tax profits from £4.2m in 2013.

Cofunds also saw a 12 per cent rise in assets under administration, from £64.1bn at the end of December 2013 to £71.9bn at the end of December 2014.

The results say the AUM figure is higher than expected, but revenue is “less than planned”.

Turnover was £78.9m in 2014, down slightly from £79.7m in 2013.

Net flows for the year were £5.4bn in 2014, down from £10.1bn in 2013. 

Cofunds chief executive David Hobbs says: “2014 was another strong year where we continued to grow our assets under administration and cemented our position as the largest platform provider in the UK.”

But he says while profits increased “significantly”, Cofunds recognises that “a business of our scale should be generating more profit”.

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