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AJ Bell reports revenue and asset growth

News Team, 27/05/2021

AJ Bell’s revenues are up 21 percent to £73.9 million, according to its freshly announced interim results.

The UK-based investment platform has just published its performance levels for the six-month period ending on 31 March 2021.

It revealed that revenues have markedly increased from its former half-year total (HY20) of £60.9 million. Meanwhile, profit before tax (PBT) has soared by 39 percent to £31.6 million (HY20), with the PBT margin up 5.6 percentage points to 42.8 percent (HY20: 37.2 percent).

Continuing this theme of sustained growth, the balance sheet has also been strengthened with net assets up eight percent during the recorded period, at £117.9 million. Total net inflows has reached £3.1 billion (HY20: £2.1 billion), driven by platform net inflows of £3.3 billion (HY20: £2.5 billion).

Focusing on a broader perspective, the report also revealed that assets under administration (AUA) are up 35 percent over the last 12 months and 15 percent in the first half of the current financial year, closing at £65.2 billion. Assets under management (AUM) up 180 percent over the last 12 months and 75 percent in the first half of the current financial year, closing at £1.4 billion.

Total customers increased by a record 51,492 in the same period, up 32 percent over the last 12 months and 17 percent in the first half of the current financial year. The customer retention rate remained resilient at 94.8 percent (FY20: 95.5 percent).

Andy Bell, Chief Executive Officer at AJ Bell, said: “We have delivered a strong financial performance in the first half of the year, driven by record levels of new customers, inflows and dealing activity, with revenue up 21 percent and profit before tax up 39 percent.”

Commenting on the platform’s customer growth, he added: “The average age of our new direct-to-consumer customers was 38 in the first half of the year, five years younger than the average of the wider customer base. Average portfolio values remained high at £79,000. Our record number of new customers has been helped by the low interest rate environment, as savers seek higher returns on cash held in savings accounts and Cash ISAs.”

Concluding with his overall thoughts on the investment platform’s current situation, he said: “We have a resilient business model, our financial position is strong, we continue to grow market share and the outlook for the business remains positive.”

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