# AJ Bell Strong financial performance with revenue up 22%

- Link: https://www.directorstalkinterviews.com/aj-bell-strong-financial-performance-with-revenue-up-22/412823658
- Published: 2020-05-21T07:40:11+01:00
- Author: Giles Arbor

**AJ Bell plc** (LON:AJB), one of the UK’s largest investment platforms, today announced
interim results for the six-month period ended 31 March 2020.

**Performance overview**

Strong financial performance as the business responded quickly to the COVID-19 pandemic,
ensuring the safety of employees whilst remaining fully operational and continuing
to service customers.

·    Revenue up 22% to £60.9 million (HY19: £50.1 million)

·    Profit before tax (PBT) up 28% to £22.7 million (HY19: £17.7 million)

·    PBT margin up 1.9 percentage points to 37.2% (HY19: 35.3%)

·    Balance sheet strengthened, with net assets up 8% in the period to £93.3 million

·    Interim dividend of 1.50 pence per share (HY19: 1.50 pence per share)

·    Total customers increased by a record 30,113 in the period to 262,179, up 22%
over the last 12 months and 13% in the first half of the current financial year

·    Total net inflows of £2.1 billion (HY19: £1.8 billion), driven by platform 
net inflows of £2.5 billion (HY19: £2.1 billion)

·    Total assets under administration (AUA) increased by 1% over the last year,
closing at £48.3 billion. AUA fell by 8% in the six-month period due to adverse 
market and other movements

·    Customer retention rate remained high at 95.4%

> **Andy Bell, Chief Executive Officer at AJ Bell, commented:**
> “This is a strong financial performance at a time when the country faces one of
> its most significant challenges in decades. Our focus has been to keep our people
> safe while continuing to provide the vital services our customers need during 
> times of market volatility and being here to service their needs.
> This unwavering attention on our customers’ needs has helped us deliver strong
> organic growth in revenue and profitability. Our customer numbers increased by
> a record 30,113 during the period and we saw net inflows of £2.5 billion to our
> core platform offering. Revenue increased 22% to £60.9 million and profit before
> tax increased 28% to £22.7 million. In light of this strong financial performance,
> the Board has declared an interim dividend of 1.50 pence per share.  The Board
> recognises the importance that our investors place on AJ Bell’s progressive dividend
> history and reaffirms our ongoing commitment to this and our stated dividend policy
> for future dividend distributions.
> The effects of the COVID-19 crisis are likely to be felt for a long time, although
> the precise impact it will have on markets, investor sentiment and economic policy
> is hard to predict. However, we have operated profitably during periods of market
> volatility and low interest rates before and our business model has proved very
> resilient. The long-term growth drivers of the platform market remain in place
> and our strong capital position, coupled with a buoyant trading performance mean
> the outlook for the future of the business remains positive.”

**Financial highlights**

|   | Six months ended 31 March 2020 | Six months ended 31 March 2019 | Change | 
| Revenue | £60.9 million | £50.1 million | 22% | 
| Revenue per £AUA* |  23.2bps | 22.0bps | 1.2bps | 
| PBT | £22.7 million | £17.7 million | 28% | 
| PBT margin | 37.2% | 35.3% | 1.9ppts | 
| Diluted earnings per share | 4.36 pence | 3.50 pence | 25% | 
| Interim dividend per share | 1.50 pence | 1.50 pence | – |

**Non-financial highlights**

|   | Six months ended 31 March 2020 | Year ended30 September 2019 | Change | 
| Number of retail customers | 262,179 | 232,066 | 13% | 
| – Platform | 248,074 | 218,169 | 14% | 
| – Non-platform | 14,105 | 13,897 | 1% | 
|   |   |   |   | 
| AUA* | £48.3 billion | £52.3 billion | (8%) | 
| – Platform | £42.0 billion | £44.9 billion | (6%) | 
| – Non-platform | £6.3 billion | £7.4 billion | (15%) | 
|   |   |   |   | 
| Customer retention rate | 95.4% | 95.4% | – |

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