Profits up at AJ Bell

AJ Bell is confident its “very resilient” business model will continue to keep its outlook positive after delivering a jump in profits.

The Manchester-based investment platform increased pre-tax profits by 28%, to £22.7m, and revenues by 22%, to £60.9m in the six months to March 31.

The company has declared an interim dividend of 1.5p, highlighting its “progressive dividend history and reaffirms our ongoing commitment to this”.

The FTSE 250 business has seen its share price recover from the market fall in February and March. Its own shares fell 40% but have since bounced back and are trading slightly above the levels seen at the start of 2020.

Andy Bell, chief executive at AJ Bell, said: “The effects of the Covid-19 crisis are likely to be felt for a long time, although the precise impact it will have on markets, investor sentiment and economic policy is hard to predict.

“However, we have operated profitably during periods of market volatility and low interest rates before and our business model has proved very resilient.

“The long-term growth drivers of the platform market remain in place and our strong capital position, coupled with a buoyant trading performance mean the outlook for the future of the business remains positive.”