Thursday, 08 November 2018 10:38

AJ Bell boosts profits to more than £28m ahead of IPO

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Platform and SIPP firm AJ Bell has boosted its profits to more than £28m as its forthcoming IPO approaches.

Full year results ending 30 September showed the company had increased pre-tax profits by 31% to £28.4m.

The firm also reported an increase in clients and assets ahead of a planned initial public offering (IPO).

The company said it expected to publish a prospectus providing more details on the IPO plans on 27 November.

  

The latest figures revealed revenues grew from £75.6m in 2017 to £89.7m this year after client numbers increased to 197,900 and assets hit £46.1bn. 

Pre-tax profits rose from 21.7m last year to £28.4m.

Ahead of the IPO, AJ Bell highlighted a 29% increase in earnings per share from 42.85p to 55.26p.

The company also emphasised that it paid interim and final dividends of £14.6 million this year, equivalent to 35.5p per share, and a further special dividend £8 million, worth 19.5p per share. 

Chief executive Andy Bell said: “The purpose at the heart of our business is to make it easy for people to invest.

“We do this by delivering innovative, low-cost and transparent investment products via our platform.

“This focus on the customer has enabled us to grow since formation in 1995 to become one of the largest investment platforms in the UK, spanning both D2C and advised markets.

“With nearly 200,000 customers and AUA of £46.1 billion, we are a business of scale operating in a fast growing market.

“We have a history of profitability, cash generation and dividends and this is once again demonstrated in our latest full year results.

“Revenue was up 19% and profit before tax increased 31%, with interim and final dividends totalling £14.6 million, an increase of 25% on the previous year.”

He added: “Our intention to float the business on the London Stock Exchange reflects both our historic achievements and our belief in how much more we can achieve.

“A listing offers us further reputational and commercial benefits that will support our growth plans.”

 

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