Following a year of significant investment, which included upping its headcount by 56%, online wealth firm Netwealth has posted a £4 million loss.
The company said the increase in the loss was due to ‘focused and disciplined investment’ in technology, people and marketing.
Over the year to 31 March, revenue was up 490% to £212,500, with the firm’s average client portfolio size rising 23%
Average employee headcount for the year was up to 25 from 16. The business does not disclose its assets under management.
Founder and chief executive officer Charlotte Ransom (pictured) said: ‘I am delighted that Netwealth has had another strong year as we continue to execute our strategy of creating a compelling, convenient and affordable discretionary wealth management service fit for today.
‘As a challenger wealth manager, our proposition delivers a cost effective, transparent and flexible service that, importantly, combines human expertise with the power of 21st century technology – this is what the industry has been lacking until now.’
Netwealth was launched in May 2016 and has raised £16.6 million in funding to date from City heavy hitters, including Edward Bonham Carter, vice chairman of Jupiter Fund Management, Harvey McGrath, former chairman of Man Group, and Santander vice chairman Bruce Carnegie-Brown.
The £4 million loss at the online wealth business is far less than some of its robo adviser rivals.
Meanwhile, Wealthsimple, the Canadian robo adviser, posted a £2.3 million loss over the year to December 2017.