Interim Results

23 May 2025

AJ Bell plc

Interim results for the six months ended 31 March 2025

AJ Bell plc ('AJ Bell' or the 'Company'), one of the UK's largest investment platforms, today announces its interim results for the six-month period ended 31 March 2025.

Highlights

Financial performance

Shareholder returns

Operational performance

Platform business

AJ Bell Investments

Non-platform business

Outlook

Michael Summersgill, Chief Executive Officer at AJ Bell, commented:

"I am pleased to report another strong set of first half results. Our dual-channel platform continued to deliver organic growth, adding over 50,000 customers in the period and net inflows of £3.3 billion, resulting in AUA surpassing £90 billion for the first time. This performance has been driven by our low-cost, easy-to-use propositions, excellent customer service and improved brand awareness, demonstrating the benefits of our continued investment in these areas.

"The increase in customers and AUA delivered strong financial performance, with revenue up 17% to £153.2 million and profit before tax up 12% to £68.8 million. Our strong financial position has enabled us to continue investing in the business, whilst also returning £64.0 million to shareholders through dividends and share buybacks since the year end. In accordance with our capital allocation framework, we are pleased to declare an interim dividend of 4.50 pence per share, up 6% versus prior year, alongside the initiation of a second share buyback programme of up to £25 million, reflecting our ongoing commitment to return surplus capital to shareholders.

"We have repeatedly broken our own records for new customer applications during the recent tax year end, seamlessly adding thousands of new customers attracted to the AJ Bell brand and our simple, low-cost products. In March and April there was also significant market volatility, resulting in heightened levels of customer activity. During this period, we continued to provide great service to our customers and advisers, illustrating the scalability and resilience of our operations.

"Our focus remains on delivering long-term organic growth and continuing to increase our market share. The structural drivers of growth in the platform market remain strong, and the investments we are making in our brand and propositions put us in a great position to capitalise on this significant opportunity. Looking ahead, there is the potential for policy developments to present further market growth opportunities. In particular, a customer-centred approach to ISA simplification could remove the barriers that currently exist between saving and long-term investing in the ISA system. Such a change to ISAs would be supercharged by Targeted Support, which would allow firms to provide personalised guidance, increasing the number of customers who feel confident to invest for the first time.

"We are well positioned to continue to succeed and invest for long-term growth across a range of different market conditions. We have started the second half of the year well, with March's strong momentum continuing into April."

Financial highlights

Non-financial highlights

*see alternative performance measures

Contacts:

AJ Bell

Results presentation details

A pre-recorded video with Michael Summersgill (CEO) and Peter Birch (CFO) discussing these results will be available on our website (ajbell.co.uk/investor-relations) along with an accompanying investor presentation from 07.00 BST today. Management will be hosting a meeting for registered sell-side analysts at 09.30 BST today. Attendance is by invitation only.

Management will also be hosting a group call for investors today at 15.00 BST. Please contact Kate Street at [email protected] for registration details.

Forward-looking statements

These results contain forward-looking statements that involve substantial risks and uncertainties, and actual results and developments may differ materially from those expressed or implied by these statements. These forward-looking statements are statements regarding AJ Bell's intentions, beliefs or current expectations concerning, among other things, its results of operations, financial condition, prospects, growth, strategies, and the industry in which it operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as of the date of these results and AJ Bell does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these results.

Chief Executive Officer's report

We have delivered strong performance with an increase in both revenue and PBT during the first half of the year. The structural growth drivers within the UK platform market remain robust, and our diversified revenue model enables us to continue investing in our brand and technology to drive long-term growth.

Performance overview

The shift towards digital investment platforms, and the growing need for individuals to take greater responsibility for their retirement savings, presents a significant growth opportunity in the UK platform market. We continue to invest in our platform with a focus on ease of use, trust and low-cost propositions. With our dual-channel business model, this means we are well positioned to capture assets from the entire addressable market, currently estimated to be worth approximately £3 trillion.

We delivered further organic growth in the first half of the year, with record customer numbers and strong net inflows increasing our share of this fast-growing market.

Total platform customers increased from 542,000 at 30 September 2024 to 593,000 at 31 March 2025, an increase of 9%. We achieved net AUA platform inflows of £3.3 billion over the six-month period (HY24: £2.9 billion) leading to AUA closing at a record £90.4 billion on 31 March 2025, up 5% from £86.5 billion as at 30 September 2024.

Our D2C platform delivered significant growth, with net inflows up 47% to a record £2.5 billion (HY24: £1.7 billion), driven by our high-quality propositions and the success of our multi-year marketing campaign. Our advised platform recorded net inflows of £0.8 billion (HY24: £1.2 billion), with increased gross inflows offset by the impact of elevated outflows from adviser consolidation and from the pension products we provide. These pension outflows were triggered by speculation over the tax treatment of pensions seen in the run-up to the October 2024 UK Budget.

AJ Bell Investments sustained its strong growth, with our MPS products growing in popularity among financial advisers. This resulted in total AUM increasing 10% from £6.8 billion as at 30 September 2024 to £7.5 billion as at 31 March 2025.

Our diversified revenue model has once again delivered strong financial results. Revenue increased by 17% to £153.2 million (HY24: £131.3 million), with all three of our main revenue lines (custody fees, interest income and dealing commission) increasing. PBT increased 12% to £68.8 million (HY24: £61.4 million), reflecting the investments we have made as we continue to grow our business.

In March, we announced an agreement to sell our Platinum SIPP and SSAS business (part of our non-platform business) to InvestAcc Group Limited for a total consideration of up to £25 million. The sale is expected to complete in the second half of FY25 and simplifies our business model, enabling us to focus on growing our dual-channel platform business.

Shareholder returns and capital

Our strong performance in the period has further strengthened our capital position. In accordance with our capital allocation framework introduced last year, we are pleased to announce an increase in the interim dividend to 4.50 pence per share (HY24: 4.25 pence per share), alongside the initiation of a second share buyback programme which will return up to £25 million of capital to shareholders. This follows completion of the £30 million share buyback programme announced in December 2024.

Business review

Investing with a focus on ease of use

As part of our focus on ease of use we seek to continuously improve our propositions across both channels.

The independent advisers who use our platform value its efficiency, as it allows them to maximise their focus on their clients. The introduction of the Multi-pot GIA is an example of our continual process to improve efficiency, in this case by enabling advisers to manage multiple investment strategies within a centralised dashboard. We have also digitised the online benefits payment process, making it seamless for advisers to request regular income payments for their clients. Work also began on enhancements to improve cash management and drawdown capabilities, bringing greater automation into the investment and disinvestment processes for advisers.

During the year we have undertaken a comprehensive rebuild of our D2C website which is currently in pilot phase and will go live in the second half of the year. The new design offers improved navigation and enhanced content delivery, all tailored to support a more intuitive and engaging investment journey for our customers. The site's architecture will also enable us to react quicker to customer needs and continuously improve application journeys, increasing new business conversion.

We continually develop our product offering to enable customers and advisers to leverage the broad range of investments available on our platform in response to changing market dynamics. To meet evolving adviser needs, we recently launched our AJ Bell Gilt MPS. This new range of portfolios is designed to offer highly tax-efficient investments available across three different maturity preferences. Advisers can now recommend gilts to their clients with a very low investment management charge of just 0.10% per annum.

First-class service at the heart of our trusted brand

Our easy-to-use digital solutions are central to our service offering. During the period, we have successfully executed over five million trades, demonstrating the scalability of our platform, and whilst customers and advisers executed over 99% of these trades online or via the app, we recognise there are moments in the investment journey when they require a human touchpoint. This is where the knowledge, experience and dedication of our Customer Service Team shines through. In the last six months, our teams have answered over 200,000 phone calls across both D2C and advised channels. Even during peak volume periods in the run-up to the tax year end, 96% of all calls received were answered within 20 seconds - a testament to the team's commitment to delivering high service standards.

We provide a secure and reliable digital platform which, taken together with our exceptional customer service, has earned us the title of Which? Recommended Provider for a seventh consecutive year, the only investment platform to achieve this. We have also maintained our market-leading Trustpilot score of 4.8-stars, a clear reflection of the trust customers and advisers place in our brand.

Brand awareness is a key factor in a customer's choice of investment platform. We have continued to invest in our multi-channel advertising campaign in the period, which has led to an all-time high in our prompted brand awareness. In the run-up to the tax year end, additional investments were made into our direct marketing activity, which contributed to record inflows on our D2C platform in March. There remains a significant opportunity from further investment in our brand and marketing. We are therefore delighted to welcome our newly appointed Chief Marketing Officer, Stephen Vowles, to our Executive Committee. Stephen brings extensive marketing expertise to the business, and I look forward to working with him to maximise our opportunities in this area as we make further improvements to our marketing capabilities.

Delivering low-cost propositions

Our commitment to being a low-cost provider remains fundamental to our strategy, and we continue to share the benefits of scale with customers as we grow. We are one of the most competitively priced platforms in the market, and last year we introduced a package of price reductions and increased interest rates paid on customer cash balances, which taken together delivered annualised savings to customers of over £20 million.

As part of adopting this low-cost philosophy, we have to continually drive operational gearing across the business. We do this by ensuring our platform scales effectively, whilst also investing in technology that improves our operational efficiency. Our hybrid technology model includes solutions that facilitate straight-through processing, the integration of robotics in back-office functions and increasingly the use of generative AI across our operations. One such deployment in the period was the automatic generation of our customer and adviser call summaries, which not only improves service efficiency but also facilitates real-time sentiment analysis. These insights are now helping us prioritise downstream operational processes and identify marketing opportunities more effectively, allowing for more personalised and timely customer engagement.

In December 2023, the FCA published its Dear CEO letter relating to the retention of interest earned on customer cash balances. It clarified that fair value should be assessed in the context of the overall costs and service provided to customers. At AJ Bell, we aim to keep direct charges for our services low whilst offering competitive rates of interest on cash balances. As part of this approach, we retain some interest income which enables us to reduce other direct charges. Since the letter was published, along with our peers, we have submitted a sample of our product-level Fair Value Assessments, in which we document the framework we have in place and the reasons why we believe it delivers fair value for customers, to the FCA. Having received firm-specific feedback we remain confident in our approach.

Market developments

Both the FCA and the Government have placed promoting retail investing front-and-centre of their respective agendas, with various proposed reforms having the potential to meaningfully impact on customers in our market. We continue to engage positively with officials on behalf of investors, campaigning for a range of measures which would help to foster a supportive environment for long-term retail investors in the UK.

We have campaigned for ISA reform for over a decade, consistently arguing for simplification of the landscape. Combining cash ISAs and stocks & shares ISAs into a single main product would significantly simplify the journey for people looking to hold cash and invest, removing a current barrier which requires people to choose one or the other at the outset. This agenda appears to be aligned with the intentions of the Government, which, in the Spring Statement confirmed it is looking to "boost the culture of retail investment". However, there are many conflicting views and vested interests in the industry, so how the pending consultation will progress is uncertain. We will continue to push for a customer-focused version of simplification, avoiding the implementation of additional rules and restrictions.

The version of ISA simplification outlined above would combine powerfully with proposed 'Targeted Support' reforms being pursued by the Treasury and the FCA. Offering a single ISA wrapper in tandem with a service that enables financial service firms to offer customers more personalised nudges (without risking straying into regulated advice) would only increase the number of customers who feel confident to make the transition from cash saving to investing. We have actively engaged in this project, participating in the FCA's 'PolicySprint' exercise, developing and testing a compelling 'cash to investing' customer journey over a six-week period. The learnings from this process will prove invaluable as Targeted Support hopefully moves from theory to reality. This would enable our platform to reach more investors who do not currently have access to independent financial advisers, ensuring we are able to target more of the total addressable market for platforms.

Less positively, the Government's proposal to bring unused pensions into inheritance tax (IHT) from April 2027 risks causing significant delays when paying funds to nominated beneficiaries and adding huge complexity to the already cumbersome probate process. We, along with a number of our industry peers, continue to push back on this issue, arguing for a simpler approach in which income tax is charged at the marginal rate of the beneficiary inheriting a pension. We will continue to press the Government to rethink its approach and consider our pragmatic alternative.

The tax treatment of pensions risks becoming an area of significant uncertainty for retail investors. The speculation about the future of tax-free cash was a significant issue surrounding the Budget in October 2024 and the current state of the public finances risk a re-run in the Autumn. We have raised this issue repeatedly with the Chancellor, calling for a 'Pensions Tax Lock' commitment to give retirement savers certainty that neither the tax deferral allowed on pension contributions nor the tax-free allowance on funds drawn for retirement income will be altered, at least for the rest of this Parliament. We will continue to press this important issue.

Outlook

In the first half of the year we have delivered strong financial results. We expect this momentum to continue with full-year revenue and PBT anticipated to be higher than that previously guided at the start of the financial year.

The strong growth momentum seen at the end of the period has continued into the second half of the year, despite significant market volatility as bond and equity markets reacted to global trade tariffs. Our customers are generally long-term investors and hold a range of assets on our platform and we have seen increased trading activity as customers use the flexibility of our platform to respond to changing market dynamics. Our D2C customers were particularly active, with money added to pensions and ISAs around the tax year end quickly being deployed into the market. Three-quarters of the trades made on our D2C platform in April were buys and over £300 million was invested into the market in only 10 trading days at the start of the month, with the majority of these investments in equities and bonds.

Although market volatility may well persist in the short term, we have a proven track record of delivering continued growth through periods of challenging macroeconomic environments. We remain confident in the significant structural growth opportunity in the UK platform market and, as such, we will continue to invest in our propositions and our brand. Taken together with our market-leading customer service levels, this means we are well placed to deliver further organic growth and capture an increasing share of the growing UK platform market.

Michael Summersgill

Chief Executive Officer

Financial review

Our scalable, dual-channel platform delivered another strong financial performance in the first half of the year, driven by the strength of our diversified revenue model. Revenue increased by 17% to £153.2 million, enabling further investments in strategic initiatives to achieve our long-term growth ambitions, whilst also delivering a 12% increase in PBT to £68.8 million.

Business performance

Customers

Customer numbers increased by 51,000 during the period to a total of 608,000 (FY24: 557,000). This growth was driven by our platform propositions, with advised and D2C customers increasing by 4% and 12% respectively. In addition, our customer retention rate reduced slightly to 93.9% (FY24: 94.2%), reflecting adviser consolidation and low-value customer account exits.

Assets under administration

We achieved strong gross AUA inflows in the period across both our advised and D2C propositions, with advised gross inflows increasing by 9% to £3.5 billion (HY24: £3.2 billion) and D2C gross inflows up significantly by 41% to £4.1 billion (HY24: £2.9 billion). This growth reflects our increased brand awareness and highly-competitive pricing model.

Outflows in the first half of the year increased to £4.3 billion (HY24: £3.2 billion), with our advised platform impacted by elevated levels of pre-Budget pension withdrawals following widespread speculation around the tax treatment of pensions. This led to a temporary change in retail investor behaviour, which normalised quickly once details of the Budget were announced. Advised outflows were also impacted by recent adviser consolidation, though to a lesser extent. 

Favourable market movements reduced to £0.6 billion in the period (HY24: £6.5 billion) as speculation over the US 'Liberation Day' tariff announcements introduced uncertainty across global equity markets towards the end of March. Taken together, we achieved closing platform AUA of £90.4 billion as at 31 March 2025, up 5% from £86.5 billion as at 30 September 2024.

Non-platform AUA remained consistent with the prior period and in line with our expectation, closing at £5.8 billion (FY24: £5.7 billion). In March 2025, we announced an agreement to sell our Platinum SIPP and SSAS business to InvestAcc Group Limited, with the sale expected to transfer approximately £3.2 billion of non-platform AUA in the second half of the year. As part of our strategy to simplify the business model and focus on the core platform market, we are currently in the process of exiting a third-party arrangement where we provide white label SIPP administration, and as such, expect a further reduction in non-platform customers.

Assets under management

We continue to see high levels of demand across D2C, advised and third-party adviser platforms for our simple, low-cost investment solutions, driven by a growing preference from financial advisers for our MPS products. Net inflows of £0.7 billion were recorded in the period (HY24: £0.8 billion), resulting in total AUM of £7.5 billion as at 31 March 2025, a 10% increase from year end (FY24: £6.8 billion). The consistently strong growth of our investments business illustrates the success of our philosophy to share the benefits of scale with our customers and advisers through cost-effective funds and MPS.

Financial performance

Revenue

Our diversified revenue model continues to deliver strong results, with revenue increasing by 17% to £153.2 million (HY24: £131.3 million). This growth was primarily driven by robust ad valorem revenues and elevated transactional dealing volumes.

Revenue from recurring fixed fees increased by 3% to £16.4 million (HY24: £16.0 million) due to higher pension administration revenue from our advised platform, driven by the increase in customer numbers.

Recurring ad valorem revenue grew by 14% to £111.7 million (HY24: £97.9 million), due to higher average platform AUA balances which led to increased custody fees. In addition, net interest income rose in the period as a result of higher levels of customer cash balances held on the platform.

Revenue from transactional fees increased by 45% to £25.2 million (HY24: £17.4 million) due to increased foreign exchange (FX) revenue as a result of elevated customer dealing activity, particularly from US investments in the lead up to, and following, the US election.

Our overall revenue margin for the half year remained stable at 32.4 bps (HY24: 32.3 bps). This reflects the upside impact of increasing FX trading volumes, as well as higher customer cash balances on the platform, moderated by the full-year impact of pricing reductions effective from 1 April 2024 as we continue to share the benefits of scale with our customers. We expect our full-year revenue margin to be higher than that previously guided at the start of the financial year.

Administrative expenses

Administrative expenses increased by 21% to £87.7 million (HY24: £72.3 million), as we delivered planned investment in our brand, technology and people. Total staff costs represent a significant portion of our total administrative expenses and increased by £8.7 million across the business as we made further enhancements to our pay and benefits package, reflecting our commitment to reward our people fairly. We continue to have a disciplined focus on cost control and efficiency in order to maximise the resources available for investment in our strategic priorities.

Distribution costs increased by 21% to £17.5 million (HY24: £14.5 million). We continue to invest in the delivery of our multi-channel advertising campaign, which has resulted in brand awareness reaching an all-time high in the period. In the run-up to the tax year end we invested in additional advertising and direct marketing opportunities, which drove record gross inflows to the D2C platform in March as customers took advantage of their annual pension and ISA allowances.

Technology costs increased by 20% to £27.1 million (HY24: £22.5 million). This was driven by our continued investment and expanded resource in our change teams. These teams are focused on delivering continuous improvement to our propositions, as well as automating manual processes in order to drive long-term operational efficiencies. We are efficiently scaling our change delivery processes, with the deployment of changes exceeding the growth in our technology headcount.

Operational and support costs increased by 22% to £43.2 million (HY24: £35.3 million), primarily driven by higher transactional costs due to elevated customer dealing activity, in addition to increased performance-related variable pay. Taken together this accounts for 10% of the cost growth. The additional transactional costs were more than offset by the increase in transactional revenue.

Exceptional operational and support costs in the prior year relates to a provision recognised in respect of potential customer redress resulting from historical SIPP operator due-diligence issues.

Total administrative expenses are expected to be higher than the guidance provided in December as we have taken the decision to invest more in our brand and marketing, as well as accelerate planned proposition development in the second half of the year. The anticipated increase in costs will be more than offset by the forecasted increase in revenue.

Profit and earnings

Investment income increased to £3.8 million (HY24: £2.9 million) as we benefitted from the interest earned on higher average corporate cash balances compared to the prior half year.

PBT increased 12% to £68.8 million (HY24: £61.4 million), with a PBT margin of 44.9% (HY24: 46.8%). This margin reflects our additional investment in the growth of our business, including the continuous improvement to our advised propositions and multi-year marketing campaign. Full-year PBT margin is anticipated to be higher than we previously guided in December, reflecting the higher-than-expected revenue margin.

Our effective rate of tax for the period was 25.7% (HY24: 25.2%), which is broadly in line with the standard rate of UK corporation tax of 25.0%. 

Basic earnings per share increased to 12.41 pence (HY24: 11.16 pence), up by 11%. Diluted earnings per share (DEPS), which accounts for the dilutive impact of outstanding share awards, increased by 11% to 12.36 pence (HY24: 11.11 pence).

Financial position

Capital and liquidity

The Group's financial position remains strong, with net assets totalling £199.0 million at 31 March 2025 (FY24: £204.0 million) and a return on assets of 26% (HY24: 25%). We have continued to maintain a healthy surplus over our regulatory capital requirement throughout the period.

We operate a highly cash-generative business, with a short working-capital cycle that ensures profits are quickly converted into cash. We generated cash from operations of £52.7 million during the six-month period and held cash balances of £174.5 million as at 31 March 2025 (FY24: £196.7 million). The reduction in cash balances from 30 September 2024 is primarily due to our share buyback programme which completed in April 2025.

The sale of our Platinum SIPP and SSAS business to InvestAcc Group Limited is expected to complete in the second half of the year, at which point a profit on disposal of up to £25 million less associated transaction costs will be recognised. The disposal proceeds will further strengthen our capital position, which will be applied in accordance with the Group's capital allocation framework.

Shareholder capital returns

The Board has declared an interim dividend of 4.50 pence per share, a 6% increase from prior year (HY24: 4.25 pence per share), in line with our capital allocation framework.

We remain committed to delivering enhanced shareholder returns. During the first half of the year we completed our first share buyback programme, returning £30 million to shareholders. Following continued strong financial results in the period, and given the surplus capital held in excess of regulatory requirements, we are pleased to announce the Board has approved a second share buyback programme of up to £25 million, to be completed before the end of the financial year to 30 September 2025.

Peter Birch

Chief Financial Officer

Responsibility statement

Directors' responsibility statement

We confirm that to the best of our knowledge:

(a) the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK; and

(b) the Interim management report includes a fair review of the information required by:

(i)  DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties facing the Group for the remaining six months of the financial year; and

(ii) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related-party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Group during that period; and any changes in the related-party transactions described in the last annual report that could do so.

By order of the Board:

Kina Sinclair

Company Secretary

22 May 2025

Independent review report to AJ Bell plc

Report on the condensed consolidated interim financial statements

Our conclusion

We have reviewed AJ Bell plc's condensed consolidated interim financial statements (the "interim financial statements") in the Interim results of AJ Bell plc for the 6 month period ended 31 March 2025 (the "period").

Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

The interim financial statements comprise:

· the condensed consolidated statement of financial position as at 31 March 2025;

· the condensed consolidated income statement for the period then ended;

· the condensed consolidated statement of cash flows for the period then ended;

· the condensed consolidated statement of changes in equity for the period then ended; and

· the explanatory notes to the interim financial statements.

The interim financial statements included in the Interim results of AJ Bell plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

Basis for conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the Interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern.

Responsibilities for the interim financial statements and the review

Our responsibilities and those of the directors

The Interim results, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Interim results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Interim results, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.

Our responsibility is to express a conclusion on the interim financial statements in the Interim results based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers LLP

Chartered Accountants

Manchester

22 May 2025

Condensed consolidated income statementFor the six months ended 31 March 2025

There were no other components of recognised income or expense in any of the periods presented and consequently no statement of other comprehensive income has been presented.

Condensed consolidated statement of financial positionAs at 31 March 2025

Condensed consolidated statement of changes in equityFor the six months ended 31 March 2025

Condensed consolidated statement of changes in equityFor the six months ended 31 March 2025

Condensed consolidated statement of cash flows

For the six months ended 31 March 2025

Notes to the condensed consolidated interim financial statementsFor the six months ended 31 March 2025

1 General information

AJ Bell plc ('the Company') is the Parent Company of the AJ Bell group of companies (together 'the Group'). The Group provides investment administration, dealing and custody services. The Company is a public limited company which is listed on the Main Market of the London Stock Exchange and incorporated and domiciled in the United Kingdom. The Company's number is 04503206 and the registered office is 4 Exchange Quay, Salford Quays, Manchester, M5 3EE.

2 Basis of preparation

The condensed consolidated interim financial statements ('interim financial statements') have been prepared in accordance with IAS 34 'Interim Financial Reporting' as issued by the IASB and adopted for use in the UK. They do not include all of the information and disclosures required for full annual financial statements and therefore should be read in conjunction with the AJ Bell plc Annual Report and Financial Statements for the year ended 30 September 2024, which were prepared under UK-adopted International Financial Reporting Standards.

The interim financial statements have been prepared on the historical cost basis and are presented in sterling, which is the currency of the primary economic environment in which the Group operates. All amounts have been rounded to the nearest thousand, unless otherwise stated.

The financial information contained in the interim financial statements does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The financial information for the year ended 30 September 2024 has been derived from the audited financial statements of AJ Bell plc for that year, which have been reported on by the Company's auditor at the time (BDO LLP) and delivered to the registrar of companies. The report of the auditor was:

(i)  unqualified; and

(ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report; and

(iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

The consolidated financial statements of the Group for the year ended 30 September 2024 are available to view online at ajbell.co.uk/group/investor-relations.

Going concern

The Group's forecasts and objectives, considering a number of potential changes in trading conditions, show that the Group should be able to operate at adequate levels of both liquidity and capital for at least 12 months from the date of signing this report. The Directors have performed a number of stress tests, covering a significant reduction in equity market values and a reduction in interest income with a further Group-specific, idiosyncratic stress relating to a scenario whereby prolonged IT issues cause a reduction in customers. These provide assurance that the Group has sufficient capital and liquidity to operate under stressed conditions.

Consequently, after making reasonable enquiries, the Directors are satisfied that the Group has sufficient financial resources to continue in business for at least 12 months from the date of signing the interim report and therefore have continued to adopt the going concern basis in preparing the interim financial statements.

Changes in accounting policies

The accounting policies adopted by the Group in these interim financial statements are consistent with those applied by the Group in its consolidated financial statements for the year ended 30 September 2024, except for:

· the inclusion of the Assets held for sale policy .

The following amendments and interpretations became effective during the period. Their adoption has not had any significant impact on the Group.

The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

The Assets held for sale accounting policy has been introduced during the period, further details can be found in note 18.

Assets held for sale

The Company classifies assets as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Assets classified as held for sale are measured at the lower of their carrying amount and fair value.

The criteria for the held for sale classification is regarded as met only when the sale is highly probable, and the asset is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of classification.

Assets classified as held for sale are presented separately as current assets in the statement of financial position.

3 Critical accounting judgements and key sources of estimation uncertainty

In the preparation of the interim financial statements, the Directors are required to make judgements, estimates and assumptions to determine the carrying amounts of certain assets and liabilities. The estimates and associated assumptions are based on the Group's historical experience and other relevant factors. Actual results may differ from the estimates applied.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no judgements made, in applying the accounting policies, about the future, or any other major sources of estimation uncertainty at the end of the reporting period, that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the financial year.

4 Seasonality of operations

There is a peak in the Group's operational activity around the tax year end. This impacts the financial results primarily in March and April, either side of the interim period end. As such, no significant seasonal fluctuations affect the first or second half of the Group's financial year in isolation.

5 Segmental reporting

It is the view of the Directors that the Group has a single operating segment being investment services in the advised and D2C space administering investments in SIPPs, ISAs and General Investment / Dealing Accounts. Details of the Group's revenue, results and assets and liabilities for the reportable segment are shown within the condensed consolidated income statement and condensed consolidated statement of financial position.

The Group operates in one geographical segment, being the UK.

Due to the nature of its activities, the Group is not reliant on any one customer or group of customers for the generation of revenues.

6 Revenue

The analysis of the consolidated revenue is disclosed within the Financial Review. The total revenue for the Group has been derived from its principal activities undertaken in the UK.

7 Operating profit

Profit per the condensed consolidated income statement has been arrived at after charging:

8 Taxation

Tax charged in the condensed consolidated income statement:

Corporation tax for the six months ended 31 March 2025 has been calculated at 25% (six months ended 31 March 2024: 25%; year ended 30 September 2024: 25%), representing the average annual effective tax rate expected for the full year, applied to the estimated assessable profit for the six-month period.

In addition to the amount charged to the income statement, certain tax amounts have been recognised directly in equity as follows:

The charge for the period can be reconciled to the profit per the condensed consolidated income statement as follows:

Deferred tax has been recognised at 25% being the rate expected to be in force at the time of the reversal of the temporary difference (six months ended 31 March 2024: 25%; year ended 30 September 2024: 25%). A deferred tax asset in respect of future share option deductions has been recognised based on the Company's share price at 31 March 2025.

9 Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to the owners of the parent company by the weighted average number of ordinary shares, excluding own shares, in issue during the period.

Diluted earnings per share is calculated by adjusting the weighted average number of shares to assume exercise of all potentially dilutive share options.

The calculation of basic and diluted earnings per share is based on the following data:

10 Other intangible assets

Additions and share-based payments capitalised as key operating systems relate to internally generated assets.

The capitalised share-based payment reversal recognised in the comparative period is due to the lapse of previously issued equity instruments under the earn-out arrangement (note 15).

11 Changes in capital expenditure

During the six months ended 31 March 2025, the Group acquired equipment with a cost of £428,000 (six months ended 31 March 2024: £431,000; year ended 30 September 2024: £1,476,000).

Disposals of equipment in the six months ended 31 March 2025 had a net book value of £15,000 (six months ended 31 March 2024: £318,000; year ended 30 September 2024: £338,000).

Additions to the cost of right-of-use assets were £1,000 in the six months ended 31 March 2025 (six months ended 31 March 2024: £36,000; year ended 30 September 2024: £2,795,000).

12 Provisions

Office dilapidations

The Group is contractually obliged to reinstate its leased properties to their original state and layout at the end of the lease terms. The office dilapidations provision represents management's best estimate of the costs which will ultimately be incurred in settling these obligations.

Redress provision

The provision has been recognised in relation to costs for potential customer redress. The redress relates to potential liability for historical SIPP operator due diligence issues in respect of non-mainstream investments, which subsequently became distressed, made by customers who had regulated financial advisers acting for them between April 2007 and 2014 and does not relate to ongoing business operations. Based on published Financial Ombudsman Service decisions, we believe that future complaints would be time-limited.

The figure represents our current most reliable estimate of the present obligation, accepting that there is still some uncertainty regarding the amounts required to settle the obligations as work is ongoing. The estimate has been made by assessing a range of different outcomes based on key assumptions, including the calculation of investment loss, application of limitation, customer response rates, and customers having already received compensation from other sources. Sensitivity analysis of these key assumptions would be unlikely to have a material impact on the interim financial statements.

Although the timings of the outflows are not determined, we expect payment to be made within 12 months of the date of the condensed consolidated statement of financial position.

Other provisions

The other provisions relate to the costs associated with defending a legal case.

The timing of the outflow is uncertain and could be paid within 12 months of the date of the condensed consolidated statement of financial position.

13 Share capital

All ordinary shares have full voting and dividend rights.

The following share transactions have taken place during the period:

Own shares

As at 31 March 2025, the Group held 330,285 own shares in an employee benefit trust (31 March 2024: 718,027; 30 September 2024: 689,728).

During the period 359,443 options with a value of £1,002,000 were exercised and issued from the employee benefit trust.

Share buybacks

In December 2024, AJ Bell announced a share buyback programme for up to a maximum aggregate consideration of £30,000,000 which commenced on 5 December 2024.

In the six months ended 31 March 2025, 5,542,056 ordinary shares were repurchased under the share buyback programme, at a total cost (including transaction costs) of £24,467,000.

All ordinary shares acquired have been subsequently cancelled, with the nominal value of ordinary shares cancelled deducted from share capital against the capital redemption reserve.

14 Dividends

The following dividends were declared and paid by the Company during the period:

An interim dividend of 4.50 pence per share was approved by the Board on 22 May 2025 and is payable on 27 June 2025 to shareholders on the register at the close of business on 6 June 2025. The ex-dividend date will be 5 June 2025. This dividend has not been included as a liability as at 31 March 2025.

The employee benefit trust, which held 330,285 ordinary shares in AJ Bell plc at 31 March 2025 (31 March 2024: 718,027; 30 September 2024: 689,728), has agreed to waive all dividends.

15 Share-based payments

During the period the Group recognised a total share-based payment expense in the condensed consolidated income statement of £2,174,000 (six months ended 31 March 2024 a credit of: £595,000; year ended 30 September 2024 an expense of: £1,502,000).

The Group capitalised share-based payment costs of £53,000 (six months ended 31 March 2024: reversed £937,000; year ended 30 September 2024: reversed £935,000) within the condensed consolidated statement of financial position.

The reversal recognised in the comparative periods is due to the lapse of previously issued equity instruments under the earn-out arrangement. The costs of these instruments had been recognised over the vesting period, but, as they have now lapsed, the previously recognised costs have been reversed.

The Group operates the same equity-settled share-based payment arrangements as reported at 30 September 2024 with the exception of the below new scheme introduced during the period.

Touch Incentive Scheme (TIS)

The TIS is a performance plan introduced in FY25 in which the Board grants options to employees to obtain ordinary shares at nil cost. The TIS is exclusively available for individuals working on the development of AJ Bell Touch. The development roadmap is split into several features, with options being awarded to members of the scheme at the commencement of each feature. The expense for share-based payments under TIS is recognised over the respective period of each award.

16 Principal risks and uncertainties

We continually review the principal risks and uncertainties facing the Group which could pose a threat to the delivery of our strategic objectives. The Board believes that the nature of the principal risks and uncertainties that may have a material effect on the Group's performance over the remainder of the financial year remain unchanged from those presented within the 2024 Annual Report and Accounts.

17 Related-party transactions

There were no changes to the related-party relationships or significant transactions during the financial period that would materially affect the financial position or performance of the Group. All other transactions are consistent in nature with the disclosure in note 28 of the consolidated financial statements for the year ended 30 September 2024.

18 Assets held for sale

On 27 March 2025, the Group announced it has agreed to sell its Platinum SIPP and SSAS business, part of its non-platform business, for a total consideration of up to £25 million. This will comprise consideration on completion of £17.5 million in cash and £1 million in shares and deferred consideration of up to £6.5 million in cash, subject to certain conditions.

On completion of the deal, a profit on disposal of up to £25 million less associated transaction costs will be recognised. The deal is expected to complete in the second half of 2025. As a result, management determined the sale to be highly probable and the criteria to reclassify the related assets as held for resale were met.

The Platinum SIPP and SSAS business is not considered a major line of business for the Group and therefore is classified as a disposal group and not a discontinued operation under IFRS 5. Accordingly, assets held for sale have been disclosed separately within the condensed consolidated statement of financial position, the major classes of assets are shown below.

No impairment losses were recognised upon remeasurement of the assets prior to classification as held for sale.

19 Subsequent events

On 23 April 2025, the Group announced that it had successfully completed the £30 million share buyback programme. 1,421,768 shares for a total cost of £5,742,000 were purchased and subsequently cancelled between the end of the reporting period and the cessation of the share buyback programme. The total shares bought back through the programme was 6,963,824.

20 Cautionary statement

The interim results for the six months ended 31 March 2025 contain forward-looking statements that involve substantial risks and uncertainties, and actual results and developments may differ materially from those expressed or implied by these statements. These forward-looking statements are statements regarding AJ Bell's intentions, beliefs or current expectations concerning, among other things, its results of operations, financial condition, prospects, growth, strategies, and the industry in which it operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as of the date of these interim results and AJ Bell does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these interim results.

Alternative performance measures

Within the interim report and condensed consolidated interim financial statements, various Alternative Performance Measures (APM) are referred to. APMs are not defined by International Financial Reporting Standards and should be considered together with the Group's IFRS measurements of performance. We believe APMs assist in providing greater insight into the underlying performance of the Group and enhance comparability of information between reporting periods. The table below states those which have been used, how they have been calculated and why they have been used.

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