Online discretionary manager Nutmeg saw losses almost double to £3.6 million in 2013, as the business invested substantial sums in infrastructure to build a scalable business.
Nutmeg saw turnover increase from £2,600 at the end of 2012 to £104,000 at the end of December. Operating expenses of £3.8 million, up from £1.8 million in 2012, ate into profitability. The £3.6 million loss posted at the end of December widened substantially from the previous year's £1.8 million loss.
Over the course of 2013 the remuneration of the seven directors at the company, who are CEO Nick Hungerford, William Todd, Craig Anderson, Simon Aegerter, Nicholas George, Lee Cowles and Stephen Clark, stood at £402,000 collectively. The highest paid director took over a quarter of this with a £135,000 pay cheque.
'Nutmeg has had a very successful 2013, beating demanding business targets and establishing the business as a new choice for investors in the UK market,' noted Hungerford (pictured).
He said assets under management had grown by 28 times over the year to the end of December, while the business had attracted thousands of users.
'Significant investment was made in infrastructure to ensure that the business can scale cost-effectively; to deliver long-term profitability together with excellent customer service and experience,' he added.
The low-cost investment firm posted a £3.5 million net cash outflow from operating activities in 2013, up from £2 million the previous year. Over the year Nutmeg issued £5.2 million of share capital, up from £3.4 million in 2012. Shareholder funds doubled over the course of 2013 and stood at £3.4 million.
Over the course of 2014 £147,000 is due to Nutmeg's creditors, up from £134,000 that was due in 2013.
The company was sat on a £1.5 million cash pile at the end of December, down from £3.3 million at the end of 2012.