Moneyfarm reports £12.5m loss and expects to lose more

Moneyfarm's strategic report for the year ending 31 December 2018 revealed a loss of some £12.57m, slightly down from the previous year's loss of £13.93m. 

The firm's directors predicted the company's losses will continue throughout the next 12 months.

The digital wealth manager said its focus was on delivering continuous growth in the market share and customer base, as well as developing new products.

Moneyfarm co-founder and chairman Paulo Galvani said: "In 2018 we focused heavily on our growth strategy, with scale the key to reaching profitability.

"Having expanded into Germany and invested heavily in our API-based capabilities, we are well positioned to deliver on our vision to be the leading pan-European digital wealth manager," he said, "An 83% rise in AUM coupled with a 61% increase in revenue is testament to us using our momentum as a springboard to deliver on our ambitious plans." 

However, the firm has also revealed it had raised some £36m in a series C funding round led by postal service provider Poste Italiane and Allianz Asset Management. The two have launched a partnership together and will integrate Moneyfarm's services with Post Italiane's digital platform. 

Moneyfarm director Giovanni Dapra said: "We continue to believe that redefining the relationship people have with their wealth manager by combining human empathy with technology, is empowering investors across Europe to make confident investment decisions with simple investment solutions to build a more financially secure future."

In May this year, PA looked at the accounts of the UK robo-adviser space and found the market was still very much in its infancy. 

It found that, since the launch of robo-advisers, the companies in the sector had collectively lost more than £100m. Not one of the firms assessed had recorded a profit in their latest available financial accounts. 

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