Member Article

Profits soar 98% to £10.5m for Newcastle tech and finance group True Potential

Newcastle-based financial and technology services group True Potential has grown turnover by 61 per cent and almost doubled profits.

The business, which employs 137 staff at its Newburn Riverside headquarters, saw annual turnover climb to £44.4m in the year ended 31 December 2014, up from £27.5m in 2013.

The company also saw profits soar by 98 per cent to £10.5m during the year, in which savers and advisers flocked to its innovative new wealth management platforms.

The latest annual report from the True Potential group also shows that the firm’s investments arm registered 184 per cent profit growth to £5.4m while its cash balance increased by 616 per cent to £4.1m and net assets grew by 423 per cent to £6.8m. True Potential’s Wealth Platform now has £3bn assets under management, an increase of £1bn in 2014 alone.

The business attributed much of its success to its skilled North East workforce, whose technological innovations are helping to transform how people save and invest.

Neil Johnson, senior partner at True Potential LLP, said: “We believe technology holds the key to delivering modern wealth management to today’s modern clients.

“By being based in Newcastle we have access to top graduates from three world-class universities, so there’s no shortage of talent to draw from. Each year we hire highly-qualified local graduates into our Development Academy and other areas of the business.

“Innovation is in our DNA, it keeps us ahead of the crowd and delivering the very best for our advisers and their clients.”

This firm’s growth was driven in part by the success of impulseSave®, the online service that enables savers to add as little as £1 to their own investments as they work towards savings goals.

It is the first UK service that allows micro-payments to be transferred directly into investments at the touch of a button – and figures suggest it has helped to transform thousands of spenders into savers.

The product was launched in March 2014 and one year on it has facilitated the investment of £9m worth of funds, with over a third of transactions being under £10.

The group continues to work with close to 20 per cent of all financial advisers and latest figures show that True Potential Adviser Services firms had £67bn worth of assets at the end of 2014.

Neil Johnson said: “With a cultural shift in the UK to self-reliance when it comes to saving for retirement, it’s technology like impulseSave® that can make the difference to people’s futures.

“Last year we also saw the announcement by the Chancellor of the biggest changes to personal pensions I’ve seen in my lifetime.

“Thanks to our innovative and award-winning technology, we’re perfectly placed to take full advantage of the changes.

“With our own pension, ISA, Wealth Platform, distribution network and in-house technology, we have the capability to react at speed to market changes and develop truly unique offerings for advisers and clients. At True Potential, we are helping to create a better future for all our clients.”

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