North East fintech firm True Potential has boosted sales and profits after making investments into its successful tech platforms.
The Newcastle-based wealth management and investment technology business last year sold a majority stake to private equity firm Cinven in a deal that reportedly valued it at £2.5bn.
Now the company, which was founded in 2007 by chairman David Harrison and his son Daniel, now the chief executive, has published accounts showing turnover jumped 52% to £281m, while profits increased by 80% to £132m.
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The increase marked the largest growth in its 14-year trading history, which started with first year turnover of £2.8m. Since its launch, the firm has also seen profits rocket by more than 9,000%, starting in its first year of trading with £1.4m. The firm, which sells its investment platform to financial advisers across the UK, credited the growth to long-term investment in technology and hybrid advice models, which have helped attract large numbers of financial advisers and investors to its platform.
Directors said the investment had attracted large numbers of financial advisers and investors to True Potential’s platform since the beginning of the Covid-19 pandemic.
They said a fifth of the UK’s financial advisers are employed by True Potential or use its technology, and a further 271 advisers joined in 2021. With more than two million client records, 2021 saw assets on the firm’s in-house investment platform increase, which now stand at over £22bn.
True Potential’s impulseSave technology, which allows investors to open or top up their pensions and investments from as little as £1, also saw continued growth. In total, £206m was invested through impulseSave in 2021, with 30% of these top-ups being under £50.
Chief executive Daniel Harrison said: “This set of results proves that digitally-driven hybrid advice is the only way to run a high-growth financial services business in a post-pandemic world. I’m particularly pleased to see our impulseSave technology attracting smaller savers and investors who have often been excluded from the industry because of the exorbitant minimum deposit limits set by traditional providers.
“Millions of people in this country crave the services of real financial experts and with the cost-of-living crisis showing no sign of abating, we will continue to reach these people with our pioneering technology”.
Chairman David Harrison said: “I have always approached business with an anti-fragile mindset. In other words, I believe in building organisations and working with people who grow stronger in stressful and difficult circumstances.
“True Potential’s success during the pandemic vindicates this approach, which has been achieved through years of investing in and building our own proprietary technology and hybrid advice models. These impressive results, combined with Cinven’s recent investment, will allow us to continue investing in our successful business model.”
The firm’s charity partner, the Harrison Foundation, raised £400,000 for causes over the course of the year. All the money raised by staff is matched by the business, with events ranging from a sponsored leg-waxing by its customer care team to senior partner Gregg Lang running the entire length of the UK to raise £15,000 for Cash for Kids.
During the year the company also unveiled the results of a £1.5m office transformation to create a new base fit for post-Covid working.
