Ascentric posts £1.4m loss after losing biggest client

Ascentric has posted a pre-tax £1.4m loss for 2014 after “disappointing” levels of business saw it lose its biggest client.

Last year the Royal London-owned wrap platform reported a £567,000 pre-tax loss for 2013, which it put down to the cost of moving to a new software system.

The results of Ascentric’s parent company Investment Funds Direct state new assets under administration fell from £1.7bn in 2013 to £1.2bn last year.

The results say: “Levels of new business in 2014 were slightly disappointing. This was primarily the result of an increasingly competitive market which saw several competing platforms reduce their pricing and loss of the company’s single largest investor.”

However, Ascentric’s total assets under administration increased from £7.3bn in 2013 to £8.9bn in 2014.

Ascentric recorded a £2.3m exceptional cost for 2014, which it says relates to its “project accelerator” programme, a large-scale rebuild of its underlying IT system.