1st Dec 2022 09:26
(Alliance News) - AJ Bell PLC on Thursday upped its annual payout once again as the investment platform report improved profit, despite lowering prices and investing in new offerings.
Revenue in the year ended September 30 rose 12% to GBP163.8 million from GBP145.8 million. Pretax profit climbed to GBP58.4 million from GBP55.1 million, year-on-year.
Profit rose despite a weaker margin. AJ Bell's pretax profit margin slipped to 35.6% from 37.8%. That outcome reflects planned investments and price reductions.
During the financial year, the FTSE 250 constituent launched the Dodl low-cost investment platform. The firm will also launch Touch, a new mobile-led investment platform for financial advisers, in 2023.
AJ Bell said assets under management increased by 27% in the year to close at GBP2.8 billion at September 30, up from GBP2.2 billion a year prior.
It added 57,687 customers in the year, with a customer retention rate of 95.5%, up from 95.0% a year prior.
AJ Bell proposed a final dividend of 4.59 pence per share, giving it a total payout of 7.37p, up 5.9% from 6.96p. It is AJ Bell's 18th successive year of dividend growth, it noted.
Chief Executive Officer Michael Summersgill said: "Looking ahead, whilst market volatility is likely to persist in the short-term, our focus is very much on the long-term. The structural growth drivers for the UK investment platform market remain strong, and with around two-thirds of our estimated GBP3 trillion target market still held off platform, we have a significant growth opportunity ahead of us.
"Our diversified revenue streams and efficient operating model ensure we can continue investing in our propositions, our people and our brand whilst continuing to deliver strong financial performance, and we are well positioned heading into 2023."
AJ Bell shares were 2.2% higher at 371.80 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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