AJ Bell (LON:AJB) has delivered another impressive quarterly performance, confidently breaking through the £100 billion mark in platform assets, highlighted in the latest research note from Singer Capital Markets. In their 23 October 2025 update, analyst Andrew Watson reaffirmed a BUY rating on the stock with a 12-month target price of 610p, citing strong customer growth, solid net inflows, and upward earnings revisions.
The platform assets under administration (AuA) grew by 7.4% quarter-on-quarter to reach £103.3 billion, surpassing the broker’s estimate of £102.1 billion. The quarter saw £1.7 billion in net inflows, supported by a robust £5.5 billion boost from positive market performance.
Customer acquisition remained a key highlight, with 22,000 new customers added in Q4 alone. This brought the total new customers for the year to 100,000, raising the overall base to 657,000. Notably, the direct-to-consumer (D2C) division led the charge, adding £1.4 billion in net inflows and 22,000 customers, compared to £0.3 billion and 2,000 customers in the Advised channel.
AJ Bell’s in-house investment solution, AJ Bell Investments, also performed well, bringing in £1.2 billion of net inflows during the year, lifting assets under management (AuM) to £8.9 billion.
Looking ahead, the broker sees further upside. Watson writes, “The sustained growth outlook, medium term opportunity across both propositions and a well established margin performance makes this a core sector holding for us.”
The sale of the Platinum SIPP business, a non-platform operation, to InvestAcc is expected to complete in November, allowing AJ Bell to streamline its focus further.
Full-Year Highlights (Year Ending September 2023):
- Revenue: £218.2 million, rising to £269.4 million in FY2024E
- Adjusted EBITDA: £91.8 million (2023A), forecast to grow to £116.8 million (2024E)
- Adjusted Profit Before Tax: £88.4 million in 2023, expected to rise to £119.4 million
- EPS (FD): 16.8p in 2023, rising to 22.2p in 2024E
- Dividend Per Share: 10.75p in 2023, with a forecasted increase to 12.50p in 2024E
- Net Cash: £146.2 million, expected to rise to £196.6 million
- Dividend Yield (2025E): 2.9%
The updated earnings forecast from Singer Capital Markets includes a 4% annualised upgrade to EPS due to the higher-than-expected platform asset figure. The report notes the stock’s current valuation of 22x P/E as “muted given the outlook for the business,” suggesting attractive value for long-term investors.
On a Final Note
AJ Bell’s consistent delivery across customer growth, asset accumulation, and earnings upgrades underlines its strength as a key player in the UK investment platform space. With a clear focus on its core propositions and a steadily growing investment arm, the company is well-positioned to continue building value. Singer Capital Markets remains confident in AJ Bell’s growth story, maintaining a BUY rating and seeing further upside potential.
