Nucleus suspends dividend amid covid-19 uncertainty

Nucleus Financial Group, the Edinburgh-based platform provider, released its full-year results this morning, showing the group's AuM exceeded £16bn in 2019, while posting a slide in pre-tax profits of 5% to £7.3m.

Total AuM rose by 16.3% YoY to 31 December, while revenues rose by 4.3% to £51.5m. 

Nucleus said it was postponing its dividend payment, with David Ferguson (pictured), the fintech's founder and chief executive, saying it was "entirely uncertain" what impact covid-19 will be on the business.

In a statement the company said: "The decision to suspend payment of the 2019 final dividend will allow the group to preserve capital until there is greater clarity on the above. The board will continue to assess the situation and the appropriateness of paying a second interim dividend relating to the financial year ended 31 December 2019."

Ferguson, who set up Nucleus in 2006, said this morning: "The outlook is impossible to predict, but I can say that we remain open for business, and cash generative each day."

"Our highest priorities are the health and wellbeing of our people, users and customers and we are taking every possible action to adapt to the situation and ensure we continue to deliver our online product as normal. Our platform is fully operational and all of our people are successfully working remotely with no impact on service," he added.

"In light of the covid-19 situation, the board has taken the prudent decision not to recommend a dividend until there is more certainty around the term and impact on markets, investor confidence and revenue. While this would typically be considered an unusual decision, we are in uncharted waters, and I believe it to be the correct course of action at this stage."

Sharp falls in markets in the recent weeks have seen the compant's AuM fall to £14bn for 1Q2020.