Cofunds’ pre-tax profit falls 17% to £6m

Departing Cofunds chief executive Martin Davis

Legal & General-owned platform Cofunds has seen pre-tax profits fall 17 per cent to £5.9m in 2012, down from £7.1m in 2011.

Assets under administration on the platform grew 33 per cent to £47.6bn, up from £35.8bn the previous year.

Despite the growth, the firm’s accounts say directors see AUA as lower than expected although they say it is satisfactory in current market conditions.

Cofunds’ current AUA stands at around £55bn.

Turnover increased 5 per cent to £73.8m from £70m in 2011.

The platform adds it expects market conditions to remain challenging while it also remains in discussion with the Financial Conduct Authority over the effects of incoming platform rules.

A statement in the firm’s accounts says: ”The group expects that existing competitors and new market entrants will continue to provide strong competition and consistent with the broader economic environment, market conditions wil remain challenging.”

L&G completed its £131m acquisition of Cofunds in March following months of negotiations between the firms.

Following the deal, a number of senior Cofunds staff have announced their departures. 

The departures include chairman Charlie Eppinger, chief executive Martin Davis, head of operational services Stephen Mohan and director of marketing Verona Smith.