Nutmeg made a £9m loss in 2015, nearly double its losses in the previous year, its accounts show.
The online investment manager saw its losses increase from £5.3m in 2014 to £8.9m in 2015 on the back of increased marketing spend and new product lines.
Nutmeg reported turnover of £1.7m, up from £635,000 the previous year, but costs nearly doubled from £6m to £10.8m.
The company said in its accounts that assets under management had increased by more than 100% for the year, but not release its total AUM figure. AUM per customer was also up 35% over the year, Nutmeg claimed, and customer numbers were up 50%.
The accounts say: “Nutmeg has had a successful 2015, achieving strong growth and continuing to position the business as a new and distinct choice for investors in the UK market.
“Nutmeg continues to develop its marketing channels, brand and proposition, clarifying the company’s mission to ‘create a nation of empowered investors’. Marketing spend has increased compared to 2014 and has resulted in broader channel acquisition and heightened brand awareness.”
“The company continues to enhance Nutmeg’s product experience using an iterative approach, testing and learning primarily from customer feedback, and there will continue to be a product development focus during 2016 and beyond.”
The company said it was continuing to review “the most appropriate advisory proposition” after getting regulatory permissions to offer advice earlier this year.
Nutmeg took on an extra 21 staff during the year, taking the total number of full time staff up to 58.
The company’s chief executive Nick Hungerford (pictured) stepped down in May, and was replaced by chief revenue officer Martin Stead.
Stead says: “Nutmeg is on track with our mission to democratise wealth management and empower generations of investors. As is natural for an early-stage company, we have been investing heavily to establish ourselves and our brand, in line with an ambitious business plan. We now have an unparalleled, scalable platform; a highly experienced team; and a proven marketing model to win customers efficiently.”
Consulting director at The Lang Cat Michael Barrett says: “We’ve long thought that the robo-advice market needed a reality check. There is an awful lot of hype around robo and fintech, but despite the promise, the adoption of these services is painfully slow and worse still appears to be having little if any impact on the larger existing firms such as Hargraves Lansdown.”