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AJ Bell reports big spike in profits in maiden results

Customer numbers at AJ Bell climbed 9% over the six months to the end of March, driving a 27% increase in pre-tax profit

AJ Bell reports big spike in profits in maiden results

Customer numbers at AJ Bell climbed 9% over the six months to the end of March, driving a 27% increase in pre-tax profit to £17.7 million, as revenue on customer assets rose 1.3 basis points (bps) to 22bps.

In its maiden set of results since listing on the main market at the end of last year, the platform reported revenue 17% higher at £50.1 million.

Chief executive Andy Bell said: ‘This robust financial performance enables us to continue to invest in the platform to achieve our ambition of becoming the easiest platform to use, underpinning our principal purpose of helping people to invest.

‘Revenue and profit both increased considerably and the board has declared an interim dividend of 1.50 pence per share in line with our dividend policy.’

Group assets rose 3% over the period from £46.1 billion to £47.7 billion on net inflows of £1.8 billion, although lower risk appetite year-on-year cut dealing volume 14%.

The business has rapidly expanded its discretionary portfolio and managed fund range in recent years beneath former Wealth Manager cover star Kevin Doran (pictured) while cutting client fees as it scaled up.

Transactional revenue fell 6% to £7.9 million, although custody fees, retained interest income, and investment management fees climbed by more than a third to £29.4 million on an increase in assets and higher interest rates offering increased margin on higher client cash balances. 

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