AJ Bell reports record profit in first annual report since IPO

Over the year to 30 September, the platform reported a 17% increase in revenue to £104.9m, while assets under administration (AUA) soared 13% to £52.3bn.

AJ Bell has also managed to grow its customer base over the period, with the number of retail customers up by 17% to 232,066, and a high rate of retention at 95.4%.

Commenting on the results, CEO Andy Bell said: "These results are a strong endorsement of the business model and growth strategy that we outlined in the run up to our IPO a year ago.

"The structural growth drivers for investment platforms in the UK remain strong and if we continue to meet the needs of customers we are well placed to benefit from these over the coming years."

The group said the main driver of the growth in AUA came from the platform business, though underlying net inflows were slightly lower than the £3.3bn seen last year, at £3.2bn. Defined benefit transfers also fell by half to £900m.

However, positive market movements and return on investments contributed £2.3bn, the group said, despite the FTSE All-Share index closing the 12-month period 2% lower.

Strategic plans

Commenting on the group's future plans, Bell said it is his aim "to become the easiest investment platform to use".

"During the year we continued to invest in technology and innovation to enhance the user experience and extend our range of simple, transparent, low-cost investment solutions," he said.

This includes the recently launched Retirement Portfolio Service in response to demand for simple and cost-effective income drawdown solutions.

Early next year, the group is also planning to launch a Retirement Investment Account, a pension offering with "one simple ad valorem charge, tapering down from 0.25% per annum, with no additional charges for administration, drawdown, custody and dealing".

"Our research tells us that this straightforward, no-nonsense and transparent approach to charging will prove particularly attractive for those with pension portfolios at the sub £200,000 level," the CEO said.

Charity initiative

Alongside the results, AJ Bell is also announcing a new initiative which will see it donate around £10m to charitable causes through a new share option plan.

Charitable donations will ensure the firm increases its earnings per share by at least 100% over three years and by at least 150% over five years, subject to certain other conditions.

"The share options will be granted in favour of the AJ Bell Trust, a charity that predominantly supports disadvantaged young people in the UK and our customers and staff will get the chance to nominate which underlying causes should benefit," Bell said.

"This means that the alignment of interests between our community, our customers, our staff and our shareholders is further strengthened."

• Tweet  
• Facebook  
• LinkedIn  
• Send to  

• Topics
• Your profession