Interest rate environment hits AJ Bell’s sales
TURNOVER and pre-tax profits at Old Trafford-based pensions administrator AJ Bell both fell in the year to September 30 but the firm still increased its dividend as the amount of assets it has under administration continues to grow.
Revenues at the firm, which is a provider of online provider of Self-Invested Personal Pensions (SIPPs) dropped by 8% to £35.4m and pre-tax profits fell back by 2% to £16.1m, but the number of Sipps it administers grew by 20% to 48,306, meaning that the total amount of assets under administration grew by 22% to £11.2bn.
A joint statement from chairman Jim Martin and chief executive Andy Bell described 2010 as “another successful year, despite challenging market conditions”.
It said that both revenues and profits had been hit by a “disadvantageous” interest rate environment but added that its next financial year should benefit from a range of significant new product launches.
“We will shortly be launching ISA and dealing accounts under our Sippdeal and Sippcentre brands, which will significantly broaden our offerings,” the pair said. “This is a transformational move for our business which is happening at a time when the UK platform market is enjoying significant growth.”
Employee numbers at the firm have also increased to 333, up from just over 300 a year earlier.
By the year end, net assets increased to £20.7m from £17.2m a year earlier.
The company increased its total dividend for the year to 18.5p, up from 18.25p last year.
