THE Sottish fintech facing a £145 million takeover that staff have opposed amid fears about the impact on jobs has achieved a record performance on a key measure.

Nucleus Financial saw customers transfer £637 million funds in March for administration on its investment platforms. The figure is the highest ever recorded by Edinburgh-based Nucleus for gross inflows.

Chief executive David Ferguson said the company had reaped the rewards of its decision to maintain investment in its offering amid the challenges posed by the coronavirus crisis.

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Stock markets plunged around the world after the crisis broke before bouncing back on hopes that vaccinations will fuel a strong global economic recovery.

“March was by far our best-ever month for inflows, a trend we’d hope to see continue as lockdown eases,” said Mr Ferguson.

Founded by Mr Ferguson in 2006, Nucleus has capitalised on historic changes in the pensions world, which have required people to take greater responsibility for saving for retirement.

The company received a number of takeover approaches last year.

In February, directors recommended shareholders accept a 188p per share cash offer from private-equity backed James Hay, which also offers platforms.

However, a People Representative Group of Nucleus employees said that the deal should be opposed amid “significant anxiety” about the impact on jobs at the firm. It employs around 400 people, including 130 based in Glasgow.

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In the document detailing the terms of its offer, which was published yesterday, Salisbury-based James Hay reiterated that there may be a moderate reduction in headcount at the enlarged group following the takeover.

It said a material number of Nucleus’ employees will transfer over the medium term to FNZ, which will provide platform technology for the enlarged group.

James Hay said in the offer document that it attaches great importance to the skills, experience and continued commitment of Nucleus’ management and employees.

The company said it intends to address the important points made by the PRG after its offer becomes unconditional with the full engagement and collaboration of Nucleus.

It added: “James Hay Holdings shares the view of the PRG that a successful Acquisition can only be achieved if the impact on people across the Combined Group is fully and meaningfully considered.”

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James Hay initially proposed to acquire Nucleus by way of a scheme of arrangement. This would have required the support of a majority of the holders of Nucleus shares.

After facing opposition from some shareholders, it then decided to make a takeover offer instead. This will require the support of holders of 75 per cent of the shares in Nucleus, but not a majority of shareholders.

James Hay has obtained irrevocable undertakings to support its offer from the holders of 55.88% of Nucleus shares, including Mr Ferguson.

He said last month that the prospect of the takeover had created an understandable air of uncertainty at Nucleus. This has also affected members of the management team.

Mr Ferguson noted then that takeover regulations meant he had not been able to have discussions with James Hay directors about any changes they may plan to make to the business.

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South Africa’s Sanlam has undertaken to accept James Hay’s offer in respect of its controlling 52% holding in Nucleus.

In the offer document James Hay set 1pm on May 4 as the first closing date for acceptances

Nucleus saw total assets under administration rise by £301m net of outflows in the first quarter to £18 billion at March 31.

That left assets under administration up 28.4 per cent on the same point last year and by 3.1% on the previous quarter.

It noted yesterday that the FTSE All-Share Index increased 23.3% year-on-year in the 12 months to March 31 and by 4.3% on the last quarter.

The numbers of advisers and customers using the company’s platforms rose year-on-year and on the preceding quarter.

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Mr Ferguson said: “Profit for the year to date is ahead of the board’s expectations as a result of higher AUA and lower costs and we believe the business is well-positioned to accelerate inflow momentum and to expand our operating margin through the rest of this year and beyond.”

James Hay is owned by the Londoon-based Epiris private equity business.