Service wrap firm Ascentric's profits dropped from £1.8 million to a £567,000 pre-tax loss over one year, due to an expensive IT system upgrade.
Ascentric provides integrated fund supermarket, stockbroker and cash management facilities for independent financial advisers.
Following in the footsteps of Aviva, Ascentric is in the middle of an upgrade to the Sonata system, provided by Bravura.
Sonata is a software package targeted at insurance, pension, wrap and retail investment companies.
Ascentric’s financial results revealed the £1.6 million “exceptional cost” was down to “project accelerator” which involved “large scale redesign and rebuild of platforms underlying IT system”.
The company’s operating profit operating profit before the expense is £1.2 million, it reported, while turnover increased 22 percent from £19 million to £23.2 million.
Ascentric’s parent, Investment Funds Direct Limited also incurred charges from ISL Software, an Indian company it owns, to the tune of £122,000, “in relation to IT software services”.