Fintech firm to create jobs as it eyes growth

NUCLEUS Financial has said it still expects to increase employee numbers this year although it has suspended dividend payments amid huge uncertainty about the impact of the coronavirus on markets.

Edinburgh-based Nucleus has seen the total value of the funds that people administer using its online platforms plunge amid sharp falls on equity markets this year.

Noting significant uncertainty in global markets, Nucleus said yesterday it is too early to estimate the impact of the pandemic on the company’s performance.

“In light of the exceptional and openended uncertainty caused by the Covid-19 pandemic and the rapidly changing environment, the board has decided, in the interests of prudence, not to recommend a dividend until there is more certainty around the term and impact on markets, investor confidence and revenue,” the company told investors.

However, chief executive David Ferguson said Nucleus aims to recruit more technology specialists in the belief the long-term growth prospects for the market it serves remain strong.

“We operate in a sector which is structurally growing and is expected to continue to do so for some years,” said Mr Ferguson.

The company is benefiting from changes that mean more people will be saving for retirement. They will be required to take greater responsibility for managing their savings than in the days when pensions based on final salaries were common.

Nucleus expects to increase employee numbers by around 12 during the rest of the year, from 245 currently. The focus will be on technology specialists.

The company has moved to home working. Mr Ferguson said the process has gone smoothly.

Nucleus has not placed any staff on furlough.

Mr Ferguson was speaking after Nucleus posted a £6 million after tax profit for 2019, against £4.8m for 2018.