Latest news with #assetsunderadministration
Daily Mail
23-05-2025
- Business
- Daily Mail
AJ Bell's assets under administration surpass £90bn amid surge in new customers
AJ Bell shares surged on Friday after the firm reported record levels of assets under administration and customer numbers. The financial services group revealed its investment platform arm's assets totalled £90.4billion at the end of March, up 5 per cent from £86.5billion in September. It is the first time the figure has exceeded £90billion. AJ Bell said the surge in assets was primarily driven by net inflows increasing by £3.3billion and 'favourable market movements' of £0.6million despite stock market volatility ahead of President Donald Trump's 'Liberation Day' tariff remarks. AJ Bell, which sponsors the Great North Run, also managed to increase the division's total retail clients over the period by 9 per cent, or 51,000, to 593,000. The combined boost in assets and consumers helped boost the Manchester-based company's turnover by 17 per cent year-on-year to £153.2million. Greater customer dealing activity both before and after the US presidential election led to revenue from transactional fees soaring by 45 per cent to £25.2million. And while profit margins declined by 1.9 percentage points to 44.9 per cent owing to investment aimed at growing its business, AJ Bell's pre-tax profits still expanded by 12 per cent to £68.8million. Following the result, the firm has announced a hike to its half-year dividend of 4.5 pence per share and a share buyback programme of up to £25million. Shares in AJ Bell were the FTSE 250 Index's second-biggest riser by late afternoon, up 5.95 per cent to 484.4p, just behind precious metal company Hochschild Mining. Michael Summersgill, chief executive at AJ Bell, said: '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. He added: '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.' Trump's tariff measures have incited considerable market uncertainty and elevated activity volumes among AJ Bell's DIY investors. As well as a 10 per cent baseline tariff on US goods imports, steel and aluminium products entering the US are subject to a 25 per cent import tax, while a 30 per cent levy applies to Chinese-made goods. Reciprocal tariffs on dozens of nations and a 145 per cent tax on imports from China are currently suspended.
The Independent
23-05-2025
- Business
- The Independent
AJ Bell shares soar amid sharp rise in customer numbers
Shares in AJ Bell soared on Friday as it revealed a jump in customer numbers and hit a new record amount of assets under administration. The investing firm said it added 51,000 customers in the six months to March, a 9% increase to 593,000. Meanwhile, assets under administration rose to £90.4 billion, a 5% increase, mostly driven by £3.3 billion in net inflows. AJ Bell said it had seen similarly strong momentum into April, despite significant volatility in global financial markets amid Donald Trump's trade tariffs. The company said it has seen 'increased trading activity' as customers responded to fast swings on both the stock and bond markets. 'We have repeatedly broken our own records for new customer applications during the recent tax year end,' said chief executive Michael Summersgill. '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 company said revenues for the six-month period were £153.2 million, up 17% compared with the same point last year. AJ Bell shares jumped as high as 10% on the announcement on Friday, after profit and revenue beat analyst expectations. The company said it would invest more money into growing the business over the second half of the year, which means its costs will also be higher. But it said the higher overheads will be 'more than offset' by the increase in revenue. Mr Summersgill added: '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.'
