AJ Bell: Revenue jumps as customer numbers surge
Investment platform giant AJ Bell has reported a record financial performance after the group attracted thousands of new customers.
Group revenue rose by 18 per cent over its financial year to the end of September to £317.8m, up from £269.4m the 12 months before.
Profit before tax increased by 22 per cent to £137.8m, up from £113.3m, bolstered by large influx of new customers to the platform.
The FTSE 250 company brought in over 100,000 new customers, bringing them to roughly 644,000, a 19 per cent yearly increase.
Hugh Fairclough, partner and head of financial services at RSM UK, said: “AJ Bell’s impressive customer growth, shows the brand is winning the trust of a new wave of online investors.
“The company’s fresh, playful advertising campaign stands out in a market dominated by traditional messaging, and it’s clearly resonating with younger, digitally savvy audiences.”
Assets under administration hit a record high of £103.3bn, while assets under management rocketed 31 per cent to £8.9bn.
The board has proposed a final divided of 9.75p per share, increasing the total ordinary dividend of the year by 14 per cent to 14.25p per share.
The move marks the 21st consecutive year of dividend growth and returned £44.6m to shareholders.
AJ Bell’s 2026 outlook and investment
The group recognised the UK platform market as offering a “significant growth opportunity” with over two thirds of the £3.7 trillion of the UK’s eligible investable wealth being held outside of the platform.
The recent sale of its Platinum SIPP and SSAS pension business to Investacc, valued at £25m, and increased investment into its distribution capabilities and product offerings in order to accelerate growth.
Chief executive Mike Summersgill said the group is “confident” in its medium term outlook, and is prepared to “deliver sustainable long-term business growth”.
However, group share price fell 6.6 per cent in early morning trading to 489.40p after the company indicated there would be limited margins progression due to investing in long term growth.
Shares are up 8.9 per cent this year to date.
Budget woes
The group, which has long advocated for the simplification of ISA accounts, hailed the Budget as giving “little to cheer” about due to the failure to remove “complexity” in the retail investment process.
Summersgill said: “The reforms proposed take the ISA market in the opposite direction.
“ISAs will now see complexities such as an age-specific annual allowance for Cash ISAs and HMRC levying a charge on cash held in Stocks & Shares ISAs.”
The group also called on the government to do more to provide pension savers “to a clear commitment to tax stability” due to Budget uncertainty leading some customers to consider withdrawing their tax free lump sum.