Business

AJ Bell’s revenues and profits surge on rush of new investors

Rush of new investors and savers ploughing money into funds and shares sees AJ Bell’s profits surge

  • Revenues on the Greater Manchester-based agency jumped 15% to £145.8million
  • Trading has returned to extra common ranges because the UK financial system has reopened
  • AJ Bell is creating two new platforms, Dodl and Touch, to attempt and increase development










AJ Bell has revealed profits and revenues grew considerably final year due to its DIY investing platform attracting a file quantity of new prospects.

A rush of new investors and current prospects ploughing more money into shares and funds meant revenues on the Greater Manchester-based business jumped 15 per cent to £145.8million within the 12 months to 30 September.

Pre-tax profits rose 13 per cent to £55.1million because it added one other 87,000 prospects.

Boom occasions: AJ Bell attracted a file quantity of new prospects final year. Interest in investing platforms has surged because the pandemic, particularly amongst youthful investors 

The company mentioned income was boosted by its platform business driving file web inflows of £6.4billion, which took its whole belongings below administration to greater than £70billion for the primary time.

It additionally attributed the rise to the very excessive buying and selling in funds and shares through the UK’s nationwide lockdown over the winter interval, and the recovery in international asset costs to both above or near their pre-pandemic highs.

Trading has returned to extra common ranges because the UK financial system has reopened and restrictions have loosened, however the agency mentioned that any improve in rates of interest from their present file lows are prone to carry revenues additional.

It expects demand for buying and selling platforms to proceed rising as ‘an growing quantity of folks search the safety and peace of thoughts {that a} trusted funding platform may give them.’

AJ Bell is creating two new platforms to attempt and capitalise on this pattern; an adviser platform referred to as Touch, and Dodl, a commission-free buying and selling app focused at youthful investors that was introduced earlier this week. 

Chief government and founder Andy Bell mentioned: ‘We proceed to see important long-term alternatives within the funding platform market. The pandemic has highlighted the necessity for folks to take extra management over their monetary future, with growing numbers of folks investing for the primary time.

‘We imagine there may be growing demand for simplified, app-based funding propositions in each the D2C and suggested markets, so we’re investing in two which we’ll quickly deliver to market.’ 

Happy days: AJ Bell said it expects demand for trading platforms to continue rising as 'an increasing number of people seek the security and peace of mind that a trusted investment platform can give them.'

Happy days: AJ Bell mentioned it expects demand for buying and selling platforms to proceed rising as ‘an growing quantity of folks search the safety and peace of thoughts {that a} trusted funding platform may give them.’ 

The coronavirus pandemic has led to a surge in customers of retail buying and selling apps, particularly amongst youthful individuals who have come to investing for the primary time and these with extra spare money on their arms. 

Hargreaves Lansdown, Interactive Investor and Freetrade are just some of the funding platforms to have reported main development within the quantity of prospects utilizing their service since March 2020.  

There might be an additional surge in new investors ought to the Omicron variant trigger significantly extra market volatility and affect on the world financial system.

AJ Bell additionally introduced at present that Deloitte associate Peter Birch would take over as chief monetary officer from July subsequent year, changing Michael Summersgill, who has turn out to be the deputy chief government of the business.

Birch remarked that he had ‘adopted the progress of AJ Bell for a few years’ and has ‘at all times been impressed by its robust tradition and buyer focus, which has enabled it to develop into one of the UK’s main funding platforms’.

He added: ‘It is an thrilling time to hitch the business, and I look ahead to serving to the company to ship on its long-term development technique.’

Shares in AJ Bell ended buying and selling 8.6 per cent decrease at 361.2p on Thursday.

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