27th May 2021 09:58
(Alliance News) -Â AJ Bell PLC on Thursday reported sharp interim profit growth as a low interest rate environment resulted in a record increase in new customers over the period.
The investment platform reported 21% growth in revenue for the half-year ended March 31 to GBP73.9 million, while pretax profit jumped 39% to GBP31.6 million.
Total customers increased by a "record" 51,492 in the period, up 32% over the past 12 months and 17% higher over the first half, while assets under administration closed the period at GBP65.2 billion, up 15% from GBP56.5 billion at the end of September.
AJ Bell put its strong performance down to the "continued success of our platform propositions".
"The average age of our new direct-to-consumer customers was 38 in the first half of the year, five years younger than the average of the wider customer base...Our record number of new customers has been helped by the low interest rate environment, as savers seek higher returns on cash held in savings accounts and Cash ISAs," said Chief Executive Andy Bell.
The platform market continues to grow "at pace" in both the advised and direct-to-consumer segments, it noted, and the company said it is well placed to capitalise on opportunities.
While cautioning it expects to see some normalisation in trading activity ahead, AJ Bell said its revenue model provides "resilience" during times of market volatility and low interest rates.
"We have a resilient business model, our financial position is strong, we continue to grow market share and the outlook for the business remains positive," said CEO Bell.
The company lifted its interim dividend by 64% to 2.46 pence.
Shares in AJ Bell were down 1.0% at 431.80p in London on Thursday.
By Lucy Heming;Â [email protected]
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