Investment platform records year of strong growth in volatile conditions

Manchester-based investment platform, AJ Bell, has reported a year of strong growth, today.

Announcing results for the 12 months to September 30, it unveiled a 21% increase in revenues of £126.7m alongside a 29% surge in pre-tax profits o £48.6m

Its balance sheet strengthened, with net assets up 27% in the year to £109.5m.

A final dividend of 4.66 pence per share takes the total ordinary dividend for the year to 6.16 pence per share, an increase of 28%.

Total customers increased by a record 63,239 in the year, up 27% to 295,305.

Total net inflows of £4.2bn compared with £3.9bn in 2019, driven by platform net inflows of £4.9bn, up from £4.3bn last year.

Total assets under administration (AUA) were up eight per cent during the year to £56.5bn. That compares with a 19% fall in the FTSE All-Share Index

AJ Bell’s customer retention rate remained high at 95.5%, against 95.4% in 2019.

Chief executive, Andy Bell, said: “This has been another year of strong growth, with high levels of new customers and record dealing activity driving a 29% increase in profit before tax to £48.6m.

“Our focus on providing an easy-to-use platform at a competitive price has resulted in growth in customer numbers and assets under administration of 27% and eight per cent, respectively, during a year when the FTSE All-Share Index fell by 19%.

“In light of this strong financial performance, the board recommends a final ordinary dividend of 4.66p per share, taking the total ordinary dividend for the year to 6.16p per share. This is an increase of 28% on the previous year and extends our record of increasing our ordinary dividend every year since we paid our first dividend in 2004.”

He added: “The long-term growth drivers of the platform market remain strong, with customers increasingly looking for good value, online solutions and we are well positioned to benefit from those trends.”

Looking ahead, he said: “The long-term impact of the pandemic on the global economy is hard to predict, but we do expect interest rates to remain low or the foreseeable future.

“Whilst this will have an impact on revenue, we have a diversified revenue model and have operated in a low interest environment successfully for several years.

“It is during economic downturns that people need security more than ever, together with an investment platform they can trust to provide them with a reliable, high-quality, easy-to-use service at a low cost.

“At AJ Bell we have an established brand with over 25 years of experience, which has delivered on these needs in the past and is committed to doing so in the future.”

he said: “The long-term growth drivers of the platform market remain strong, with customers increasingly looking to take control of their savings using flexible, low-cost, online solutions, either directly or with the support of an adviser.

“Our ongoing commitment and ability to invest in our award-winning platform propositions mean that we are well positioned within our market to benefit from opportunities as they arise.”