Salford-based investment platform giant AJ Bell reported a jump in customers and assets under management for the year as stock markets surged, while it upped its dividend and launched a £30 million share buyback programme.
Its shares rose 3% on the London Stock Exchange to an all-time high.
Customers using its popular investment platform increased by 14% to 542,000, while platform assets under advisement rose 22% to £86.5 billion, driven by net inflows of £6.1 billion and favourable market movements of £9.5 billion.
At AJ Bell Investments, its fund management operation, assets under management rose 45% in the year to a record £6.8 billion, with net inflows of £1.5 billion.
That growth helped lift annual revenue 23% to £269.4 million and profit before tax 29% to £113.3 million.
On the back of the improved results, the company declared a final dividend of 8.25 pence per share, up 16% from last year, and announced a buyback programme of up to £30 million of its shares, and offered the prospect of more rewards for shareholders.
“This level of buyback reflects our current capital position; however we see opportunities for further shareholder returns in future, over and above a progressive ordinary dividend, as we continue to deliver on our growth strategy,” the company said.
Michael Summersgill, Chief Executive Officer of AJ Bell, urged the new Labour government to provide stability after its first Budget.
Summersgill said: “While Capital Gains and Inheritance Tax changes announced at the Budget will impact some customers, the fundamental features of the pension and investment tax system remain unchanged.
“The Government now has an opportunity to galvanise the retail investment market through a long-term commitment to tax stability, allowing more people to invest for the future with certainty.
“We will continue to campaign for stability and simplicity for retail investors, helping to make it easy for people to invest and plan for the long-term.
“Looking ahead, I am confident in the outlook for both AJ Bell and the broader platform market. The long-term structural growth drivers of the market remain strong, as more individuals recognise the importance of taking control of their financial future.
“Platforms offer an excellent solution for managing long-term finances, and we remain very well-positioned to capitalise on this growing demand.
“We will continue to reinvest the benefits of scale in our platform propositions, ensuring that we are well equipped to serve both existing and new customers, delivering great value to them alongside strong profitability and shareholder returns.”