Directors at stockbroker plan to sell off £25m of shares

Directors at stockbroker AJ Bell are planning to sell off around £25m of shares in the business.

Numis Securities said on Tuesday that several directors, senior management and employees intend to sell up to 6.4 million shares, representing around a 1.6 per cent stake in the business.

Numis said it will offer the shares to institutional investors through an accelerated bookbuild, and it will act as sole bookrunner.

The firm, which was launched by Andy Bell and has its head office in Salford Quays, will not receive any proceeds from the placing.

AJ Bell shares closed 1.6 per cent higher in London on Tuesday at 406.02 pence each.

The firm was launched on the Stock Market 12 months ago and last week published its annual results.

AJ Bell’s profit before tax jumped a third to £37.7m for the 12 months to 30 September, up from £28.4m.

The increase was on the back of revenues 17 per cent higher at £104.9m from £89.7m. A full-year dividend of 4.83p per shares was declared, an increase of 31 per cent over the last 12 months.

Meanwhile assets under administration broke the £50bn barrier over the year and have now reached £52.3bn, up from £46.1bn.

When the firm was first listed on the Stock Market the shares were valued at 160 pence.

AJ Bell also announced a new charity scheme which will see £10m donated to various causes if the platform increases its earnings per share by 100 per cent over the next three years.

Founder and chief executive Andy Bell said: “If we exceed our ambitious growth plans, our shareholders will benefit and we want to ensure some of that success is shared with the less fortunate in society.

“Here we have an example of capitalism and socialism working hand in hand as a combined force for good.”