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Novia reports £500,000 profit thanks to Aegon tie-up
by Jun Merrett on Jul 03, 2012 at 14:26
Novia has reported its first annual profit thanks to its tie-up with Aegon to provide its at-retirement wrap, Aegon Retirement Choices.
The wrap has reported a pre-tax profit of £500,000 for 2011 after suffering a £4.3 million loss in 2010. Revenues have increased substantially, to £8.9 million in 2011 from £2.3 million in 2010.
The revenue increase was helped largely by a £5 million payment to subsidiary, Novia Investment Services (NIS), for its services in powering the Aegon Retirement Choices wrap.
Bill Vasilieff, (pictured), chief executive of Novia, said the revenue boost was also due to new business written onto the platform: 'The revenue is also business in force and new business written as well as the revenue from NIS. We're happy with our progress in 2011 in very difficult markets. If you look at the revenue, it went up net of NIS, from £2.3 million to £3.9 million.'
Administrative expenses have increased to £8.1 million, from £6.7 million in 2010, as a result of increasing expenditure in sales and marketing, including the hiring of four people for its sales team and sponsoring Bath rugby club.
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