Avalon Investment Services has reported a pre-tax profit of £41,000 for the year ending 30 June 2012, a fall of 37 per cent compared to £66,000 pre-tax profit in 2011.
The platform’s accounts show turnover increased 7 per cent to £2m from £1.86m in the previous year. Assets under administration on the platform increased 37 per cent from £205m in 2011 to £280m in 2012.
The business says volatile markets had an adverse affect on income. The firm launched its Junior Isa service in July 2011.
Avalon director Harry Kerr says: “Stockmarkets continued to be very volatile during the year and this had a detrimental effect on our income. However growing Sipp business and the successful launch of the new Junior Isa product helped to maintain profitability.”
In October, Money Marketing revealed Avalon will administer over 30,000 Junior Isas as part of the Government’s initiative to provide an investment account for children in care.