Investment platform reports progress in the year since flotation

Andy Bell

AJ Bell, the Salford-based investment platform, reported positive progress in the year to September 30, today.

The firm, which floated last year and was valued at more than £1bn earlier this year, said total customer numbers increased by 17% in the year to 232,066, with total assets under administration (AUA) up 13% to £52.3bn.

In comparison, the FTSE All-Share index decreased by 2% over the year.

AJ Bell’s growth during the year was driven by the platform business.

The company said platform customers increased by 34,956 to 218,169, up 19% in the year, while platform AUA increased by 16% over the year to £44.9bn.

Advised platform AUA was up 13% to £33.8bn, while D2C (direct to consumer) platform AUA was up 28% to £11.1bn.

Underlying platform inflows, representing organic growth in the year, increased to £5.4bn, compared with £5.2bn in 2018.

Chief executive Andy Bell said: “Our first full year trading update since the IPO demonstrates the resilience of our business model.

“During periods of unsettled markets and political uncertainty customers have a greater need for established, trustworthy businesses offering high-quality service, at low cost to meet their evolving investment needs.

“This has enabled us to continue to add customers and assets to the platform.

“Platform customer numbers continued to grow strongly, up 19% over the year and platform assets under administration increased 16%, despite a 2% fall in the FTSE All-Share.

“Underlying platform inflows remained robust at £5.4bn and transfers from defined benefit pensions added a further £0.9bn.

“The long-term growth drivers of the platform market remain strong with customers increasingly looking to take control of their long-term savings with flexible, low-cost, online solutions.

“This, coupled with our strong customer retention rate, positions us well to achieve our organic growth ambitions.”

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