Investor backing boosts AJ Bell's stock value, with a £3.3 billion injection
AJ Bell, the London-listed financial services firm headquartered in Salford, has reported a strong half-year performance, with an impressive 17% revenue increase to £153.2 million. The company's profits also grew by 12% to £68.8 million in the six-month period ending March 31, 2025.
This robust growth was driven by a surge in assets under administration, which hit a record £90.4 billion, according to various sources. The influx of £3.3 billion from investors and favorable market movements of £600 million contributed to this significant growth.
The company's user base on its investment platform grew by 9%, adding 51,000 new customers, bringing the total to 593,000. The assets under management in the investments business line also saw a 10% increase, closing the quarter at £7.5 billion.
Michael Summersgill, AJ Bell's CEO, commented, "Our simple, low-cost products, excellent customer service, and improved brand awareness have attracted a significant number of new customers during the tax year end."
Faced with 'significant market volatility' during March and April, AJ Bell demonstrated resilience, successfully navigating the Trump tariff-fueled market chaos, as well as heightened levels of customer activity during this period. The platform's assets reached a record £96.2 billion in the first quarter of 2025.
In a strategic move, AJ Bell has agreed to sell two of its pension products to Investacc. The company's focus remains on delivering long-term organic growth and increasing its market share. It plans to accelerate business investment in the second half of the financial year, while continuing to emphasize low-cost, easy-to-use investment platforms, improved customer experience, and offering attractive shareholder returns, including a £25 million share buyback program and a 6% increase in the interim dividend.
Analysts expect continued growth for AJ Bell, with Shore Capital forecasting £120 million in operating profit and £297 million in revenue for the full year 2025, reflecting a 12% increase in profit from the prior year. The company remains optimistic about capitalizing on market volatility and attracting long-term retail investors.
In summary, AJ Bell's impressive half-year results, driven by strong growth in AUA, revenue, and customer numbers, indicate an expanding presence in the competitive UK investment platform sector. The company's future growth strategy is multi-faceted, focusing on increased investment in its platform, customer service, and shareholder returns, supported by favorable market conditions and a strong brand.
Investors appreciated the boost in AJ Bell's financial performance, as the company's revenue and profits expanded by 17% and 12%, respectively. This investment opportunity is situated within the dynamic business sector, where the firm's distinct focus on offering low-cost, user-friendly platforms and excellent customer service attracts a substantial number of retail investors.
In the pursuit of future growth, AJ Bell is strategically investing in its platform, improving customer experience, and offering shareholder returns, such as a £25 million share buyback program and a 6% increase in the interim dividend. Remaining optimistic about capitalizing on market volatility, the firm plans to maintain its competitive edge in the UK investment platform sector.
