AJ Bell revenue up to £57m in face of low interest rates

MANCHESTER-based investment platform AJ Bell has increased revenue 7% to £57m (2014: £53.5m) in the face of the continuing low investment rate environment.

Pre-tax profits fell 4% to £15.5m (2014: £16.1m) as a direct result of the interest rate climate as the company celebrates 20 years since its launch by Andy Bell and Nicholas Littlefair with £10,000 of personal loans.

Meanwhile, assets under administration grew 10% to £26.1bn from £23.7bn and the total number of retail customers climbed 16% to 120,550 from 104,422.

A joint statement from chairman Les Platts and chief executive Bell said: “Since 1995, AJ Bell has grown from a small actuarial and pension administration company to one of the largest investment platforms in the UK.

“This has been achieved by continually striving for improvement and ensuring that our core principle of making investing easier for all our customers is at the heart of everything we do.”

Of the decrease in profit, it said: “This was due to the year-on-year fall in interest income. Falling interest income has continued for a few years now and whilst the effect on revenue has been minimised due to our balanced revenue model, the impact on overall profitability persists.

“We also increased discretionary expenditure this year, with additional investment in our digital strategy and on marketing our platform products.

“The Group’s financial position remains very healthy. Net assets grew from £49.4m at 30 September 2014 to £52.2m at September 30 2015, an increase of 6%. The business  continues to be debt-free and corporate cash balances  also increased strongly in the year, up 9% from £33.2m to £36.3m.

“This financial strength ensures we are well placed to continue investing in our business. It also gives our  stakeholders the confidence that we have sufficient capital to  withstand any headwinds or to capitalise on any acquisition opportunities.”