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Novia profits surge to £7.8m

Novia has reported a surge in pre-tax profits during 2013 driven by a multi-million pound deal with Aegon.

Aegon paid Novia £7m following the acquisition of the platform’s development arm Novia Investment Services in 2013.

Novia’s accounts, published this week, show the deal pushed pre-tax profits at the platform from £0.8m in 2012 to £7.8m as at 31 December 2013.

Aegon acquired the Novia development arm in December 2013, taking its platform in-house. Novia had previously built and administered platform services for Aegon. 

Year-on-year revenues rose 84 per cent, from £10.3m to £18.8m, while costs increased 24 per cent from £9.3m to £11.5m.

Assets on the platform rose 64 per cent, from £1.4bn to £2.3bn.

In its accounts, Novia says: “Of the increase in revenue, £7m relates to brought forward intra-group fees following the termination of the agreement between Novia Investment Services and Aegon, with the remaining growth being the result of the expansion in both sales for the year and overall assets under management.”

Novia chief executive Bill Vasilieff says: “As well as our successful asset growth story we are also delighted to be able to report a significant rise in pre–tax profit for the year.

“Whilst a significant proportion of this was from the bringing forward of the intra-group fees following the completion of the agreement between Novia and Aegon, the remainder was from sound execution of the core business strategy of growing assets through our service proposition and technology.”

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