Platform industry losses near £50m despite AUA growth

Total platform industry costs stood £50m higher than revenues in 2011 despite assets under administration of nearly £250bn, according to Altus.

Research from platform consultancy Altus examining accounts for the top twenty UK platforms between 2006 and 2011 shows total revenues of £740m for 2011, up from £330m in 2006. But total expenditure rose from £380m to almost £790m over the same period, Though AUA increased five-fold in that time, average revenue as a proportion of AUA fell from 80bps to 40bps. Altus pointed to an over-emphasis on asset growth and insufficient attention to back office costs as the main reasons for a lack of profitability. "The platform industry has matured at lightning speed over the last decade,...