Nutmeg makes £5.3m loss

hungerford

Nutmeg has reported a £5.3m pre-tax loss for 2014, compared to a £3.6m loss the previous year.

The online discretionary investment manager reported a turnover of £635,381 for the year, up from £103,903 in 2013.

The results say the company may require further cash injections to continue to develop and market its product offering, and to build its customer base and assets under management.

It says the directors have a reasonable expectation of securing additional funding from shareholders and new investors should this be the case.

Nutmeg chief executive Nick Hungerford says: “We are investing in growth and will continue to do so over the coming years. We want to spend lots of money investing in product development and marketing to attract more customers.

“We expect customers to be with us for life so they will be profitable in the long term, but in the first couple of years that is not going to be the case.”

The results say Nutmeg’s target market remains 35 to 45 year olds who have invested before but do not want to manage their investments themselves.

The results say: “As the business grows, Nutmeg is also attracting customers who have not invested before and older customers who have additional investment needs.

“The recent addition of a pension product is expected to increase Nutmeg’s appeal to older customers.”