Investment platform AJ Bell today posted a strong set of first half results to 31 March showing the business’s resilience to COVID-19.
The firm’s revenues were up 22 percent to £60.9 million, pre-tax profits improved 28 percent to £22.7 million while profit margin increased by 1.9 percentage points, all on a year-on-year basis.
AJ Bell’s net assets were also up by 8 percent to £93.3 million and its total customers increased by 22 percent to a record 262,179.
While the company’s assets under administration improved by 1 percent on a year-on-year basis, it was down 8 percent during the six month reporting period due to adverse market conditions.
Customer retention was high, standing at 95.4 percent while its dividend was static compared to the prior year.
Andy Bell, chief executive of the firm, said in a statement: ““This is a strong financial performance at a time when the country faces one of its most significant challenges in decades. Our focus has been to keep our people safe while continuing to provide the vital services our customers need during times of market volatility and being here to service their needs.
“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.”