AJ Bell reports record set of full-year results

(Sharecast News) - Investment platform AJ Bell reported record full-year financial results on Thursday, with revenue rising 23% year-on-year to £269.4m, while profit before tax increased 29% to £113.3m. The FTSE 250 company said its pre-tax profit margin improved to 42% for the 12 months ended 30 September, from 40.2% a year earlier, bolstered by an increased revenue margin of 31.6 basis points and operational efficiencies.

Diluted earnings per share climbed 23% to 20.34p.

The board proposed a final dividend of 8.25p per share, taking the total ordinary dividend for the year to 12.5p - a 16% increase, and marking the 20th consecutive year of dividend growth.

AJ Bell also announced a £30m share buyback programme, underlining its strong cash generation and capital position.

The board said the platform business saw robust growth, adding 66,000 customers to reach a total of 542,000 - a 14% increase.

Assets under administration hit a record £86.5bn, up 22% year-on-year, supported by net inflows of £6.1bn and favourable market movements of £9.5bn.

Customer retention remained high at 94.2%, as the company maintained a Trustpilot rating of 4.8.

AJ Bell Investments also delivered substantial growth, with assets under management surging 45% to £6.8bn.

Net inflows during the year totaled £1.5bn, reflecting continued demand for the company's investment solutions.

"I am pleased to report on another excellent year for AJ Bell, with our dual-channel platform delivering strong growth in both customers and assets under administration," said chief executive officer Michael Summersgill.

"Platform customers increased by 14% to 542,000, while platform AuA increased by 22% to £86.5 billion, driven by strong net inflows and favourable market movements.

"AJ Bell Investments' range of simple, low-cost investment solutions also attracted excellent flows across both the advised and D2C markets, driving AuM up 45% to £6.8bn."

Summersgill said the continued growth of the business, underpinned by its "scalable operating model", drove record financial performance in the year, with profit before tax up 29%.

"Looking ahead, I am confident in the outlook for both AJ Bell and the broader platform market.

"The long-term structural growth drivers of the market remain strong, as more individuals recognise the importance of taking control of their financial future."

Michael Summersgill said AJ Bell's platforms offered an "excellent solution" for managing long-term finances, adding that the company remained "very well-positioned" to capitalise on that growing demand.

"We will continue to reinvest the benefits of scale in our platform propositions, ensuring that we are well equipped to serve both existing and new customers, delivering great value to them alongside strong profitability and shareholder returns."

Reporting by Josh White for Sharecast.com.