AJ Bell revenue rises to £109m in first year after IPO

AJ Bell CEO Andy Bell

Manchester-based investment platform AJ Bell said its revenue rose 17% to £109.4 million and pre-tax profit soared 33% to £37.7 million in the 12 months to September 30 as it completed its first year as a public company.

Dividend will rise 31% to 4.83p.

Retail customers increased 17% to 232,066, with customer retention rate improving from 95.1% to 95.4%.

Assets under administration (AUA) rose 13% to £52.3 billion

AJ Bell CEO Andy Bell said: “These results are a strong endorsement of the business model and growth strategy that we outlined in the run up to our IPO a year ago.

“Our focus on the needs of our customers and helping them to invest has enabled us to continue to add new customers to the platform and retain existing ones.

“This has resulted in assets under administration increasing to £52.3 billion and helped us to deliver another strong financial performance with revenue up 17% and profit before tax up 33%.

“Our balance sheet remains strong and the board has proposed a final dividend of 3.33p which takes the total ordinary dividend for the year to 4.83p, an increase of 31%.  

“The structural growth drivers for investment platforms in the UK remain strong and if we continue to meet the needs of customers we are well placed to benefit from these over the coming years.

“Alongside these results, we are announcing an innovative CSR initiative which will see charitable causes share in our success if we exceed our ambitious growth plans, subject to shareholder approval.

“A new share option plan will result in charitable causes benefiting from circa £10 million if we increase our earnings per share by at least 100% over three years and by at least 150% over five years, subject to certain other conditions.

“The share options will be granted in favour of the AJ Bell Trust, a charity that predominantly supports disadvantaged young people in the UK and our customers and staff will get the chance to nominate which underlying causes should benefit.

“This means that the alignment of interests between our community, our customers, our staff and our shareholders is further strengthened.”