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Vasilieff confident of Novia profit plan

Novia Financial says it is still on track to break into profit next year despite posting a £2.8m net loss and its auditors raising concerns over its future.

Chief executive Bill Vasilieff says it is “absolutely inevitable” for a platform start-up to lose money initially but he is confident that Novia will move into profit by the end of 2010.

He has set a growth target of £300m assets under management by the end of this year and £900m by the end of 2010.

Vasilieff says Novia has an “irrevocable commitment” from existing investors to inject a further £2m of capital into the business. It also has confirmation from existing investors of their intention to provide additional capital if growth forecasts are not met.

It has 169 IFA firms signed up to use the platform.

The firm started trading last October with a soft launch before opening to the whole of market in January this year.

In its statement accompanying Novia’s accounts, auditor PricewaterhouseCoopers said: “The company’s ability to continue as a going concern depends on the company ach- ieving acceptable growth in assets under management and resulting revenue.

“These conditions, along with other matters, indicate the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern.”

A further note highlights the additional funding of investors.

Vasilieff says: “We will break even next year for a fraction of the cost compared with a lot of the other big players. Business is growing rapidly and we are not that far behind our original plan.”

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