AJ Bell posts record full-year financial performance

(Sharecast News) - Investment platform AJ Bell reported a record financial performance in its final results on Thursday, with revenue rising 33% year-on-year to £218.2m. The FTSE 250 company said its profit before tax jumped 50% in the 12 months ended 30 September, to £87.7m, while its profit before tax margin improved to 40.2% from 35.6%.

It put the improvement down to an increased revenue margin of 29.8 basis points, coupled with total cost growth in line with its prior guidance.

Diluted earnings per share saw a substantial rise of 46%, amounting to 16.53p.

AJ Bell's board proposed a final dividend of 7.25p per share, resulting in a 46% increase in the total ordinary dividend for the year, which now stood at 10.75p, aligning with its stated dividend policy and marking the 19th consecutive year of ordinary dividend growth.

In the platform business segment, AJ Bell reported a notable increase in its customer base, with 50,880 new customers bringing the total number to 476,532.

Platform net inflows for the year amounted to £4.2bn, down slightly from the prior year's £5.8bn.

AJ Bell also achieved a record high in assets under administration, rising 11% to £70.9bn.

That growth was driven by net inflows across the platform and favourable market movements, contributing £2.6bn.

The company said its customer retention rate remained robust at 95.2%, only slightly lower than the 95.5% recorded in 2022.

AJ Bell Investments also recorded solid results, with record net inflows of £1.65bn, up 57% year-on-year.

Assets under management saw significant growth of 68% to £4.7bn.

"I am pleased to report another year of strong financial performance for the business which has demonstrated our ability to continue to grow in different market conditions," said chief executive officer Michael Summersgill.

"Revenue increased 33% to £218.2m, enabling us to reinvest in our customer proposition and our people whilst delivering a record profit before tax of £87.7m, which supports an increased dividend for shareholders.

"We added over 50,000 customers to the platform in the year, reflecting the quality and value of our propositions, as well as increased investment in our brand."

Summersgill said the customer growth enabled the company to deliver more than £4bn of net inflows, which he described as an "excellent result".

"Our dual-channel platform has continued to perform strongly against the current backdrop of elevated inflation and interest rates, demonstrating our resilience through the economic cycle.

"Whilst the current challenging environment is likely to persist in the short term, I am confident that our long-term focus and continued investment in the business positions us well to take advantage of the structural growth opportunity for the platform market."

At 0852 GMT, shares in AJ Bell were up 7.41% at 277.12p.

Reporting by Josh White for Sharecast.com.