Alliance Trust Savings returns to profit after Stocktrade acquisition

Mill-Patrick-Alliance Trust-2014Alliance Trust Savings saw its profits increase to £400,000 in the first half of 2016 from a loss of £1.1m in the same period a year ago, helped by increasing assets.

In its half-year results, published today, the investment platform saw a 40 per cent rise in assets under administration to £12bn from £8.5bn at the end of 2015.

The firm also saw a 31 per cent growth in customer accounts for the same period, equal to 26,000 new accounts, mostly due to the recent acquisition of Stocktrade, the company says.

In May 2015, Alliance Trust bought Brewin Dolphin’s execution-only stockbroking business for £14m, saying the deal gave ATS the ability to scale its operations, with access to 48,000 new potential customers and up to £4.6bn in assets under administration.

At the time of the acquisition, the Alliance Trust platform had £7.2bn in assets and around 57,000 customers.

Alliance Trust Savings chief executive Patrick Mill says: “In recent years we have made substantial investments in the business with the acquisition of Stocktrade, the creation of a new board and executive committee to oversee our governance and management as a standalone business and the upgrade to new platform technology.

“These investments are now bearing fruit. Delivering a profit at the half year mark demonstrates the success of our business strategy and the appeal of our flat fee model to both direct and advised customers.”

He adds: “In the second half of 2016, we expect to continue to win new business attracted by our unique flat fee structure, award winning customer service, and improved platform functionality. We are also making good progress in our corporate partnership channel and expect this to bring additional business by the end of the year.”