17 October 2024
AJ Bell plc
Year-end trading
update
AJ Bell plc ("AJ Bell" or the
"Company"), one of the UK's largest investment platforms,
today issues a trading update in respect of its
financial year ended 30 September 2024.
Performance overview
Platform business
|
·
|
Customer numbers increased by 66,000 to close
at 542,000, up 14% in the year, as AJ Bell's dual-channel platform
continued to deliver strong growth in both advised and D2C
customers
|
|
|
o Total advised
customers increased by 12,000 to close at 171,000, up 8% in the
year
o Total D2C
customers increased by 54,000 to close at 371,000, up 17% in the
year
|
|
·
|
Record assets under administration ("AUA") of
£86.5 billion, up 22% in the year
|
|
·
|
Gross and net inflows across the platform were
significantly higher than prior year, driven by the continued
investment in AJ Bell's brand and propositions alongside improved
retail investor confidence compared to the prior year
|
|
|
o Gross inflows
in the year of £13.1 billion, up 41% versus the prior year (FY23:
£9.3 billion)
o Net inflows in
the year of £6.1 billion, up 45% versus the prior year (FY23: £4.2
billion)
|
|
·
|
Favourable market movements of £9.5 billion,
equating to 13% of opening AUA (FY23: £2.6 billion)
|
AJ Bell
Investments
|
·
|
AJ Bell's investment solutions
continued to attract strong flows in both the advised and D2C
markets, with net inflows in the year of £1.5 billion (FY23: £1.6
billion)
|
|
·
|
Assets under management ("AUM")
reached a record £6.8 billion, up 45% in the year (FY23: £4.7
billion)
|
Michael
Summersgill, Chief Executive Officer at AJ Bell,
commented:
"I am pleased to report on another
excellent year in which we have delivered impressive growth in
customers and assets under administration. Platform customer
numbers increased by 14% to close at 542,000 while platform AUA was
up 22% to £86.5 billion, both new records for AJ Bell.
"Our strategy is centred on our
dual-channel platform which serves both the advised and D2C
platform markets using a single technology platform and single
operating model. This maximises our growth opportunity within the
platform market, whilst being highly efficient to operate. Platform
net inflows of over £6 billion demonstrates the benefit of serving
both markets, while our efficient model drives strong
profitability, enabling continual reinvestment in the business to
support our long-term growth ambitions.
"Our investments business continued
to perform strongly in both the advised and D2C markets, with £1.5
billion of net inflows helping to drive assets under management up
to £6.8 billion, 45% higher than a year ago.
"We continue to advance discussions
around the creation of a supportive legislative environment for
long-term investing through simplification of the ISA system and
long-term pension tax stability. Pensions are the
primary retirement savings vehicle in the UK and customers are
unsurprisingly sensitive to changes in their tax treatment. Amidst
increased press coverage ahead of the upcoming Budget, we have seen
a noticeable change in both customer contributions to pensions and
tax-free cash withdrawals. Whilst these behavioural changes do not
have a material impact on AJ Bell's business performance, they
represent significant decisions for individual customers.
We have therefore made representations to the
Treasury calling for a commitment to a pension tax lock in the
Budget, guaranteeing stability in key pension tax legislation for
at least this parliament.
"In FY24 we have enhanced our
propositions, improved our brand awareness and lowered the cost of
investing for our customers whilst maintaining our industry-leading
service levels. This has helped to drive our strong performance
this year, but more importantly it provides a strong foundation for
our future growth prospects. Whilst the
upcoming Budget has introduced unhelpful uncertainty, we remain
positive about the outlook for AJ Bell and the platform market more
broadly. We look forward to announcing the annual results for what
has been another successful year for AJ Bell."
Notice of
annual results
AJ Bell expects to announce its full-year
results for the year ended 30 September 2024 on 5 December
2024.
|
Year
ended
30 September
2024
|
Advised
Platform
|
D2C
Platform
|
Total Platform
|
Non-platform
|
Total
|
|
|
|
|
|
|
|
|
Opening customers (k)
|
159
|
317
|
476
|
15
|
491
|
|
Closing customers (k)
|
171
|
371
|
542
|
15
|
557
|
|
|
|
|
|
|
|
|
AUA and AUM
(£billion)
|
|
|
|
|
|
|
Opening AUA
|
48.2
|
22.7
|
70.9
|
5.2
|
76.1
|
|
|
|
|
|
|
|
|
Inflows(1)
|
6.5
|
6.6
|
13.1
|
0.3
|
13.4
|
|
Outflows(2)
|
(4.3)
|
(2.7)
|
(7.0)
|
(0.3)
|
(7.3)
|
|
Net inflows
|
2.2
|
3.9
|
6.1
|
-
|
6.1
|
|
|
|
|
|
|
|
|
Market and other
movements(3)
|
5.7
|
3.8
|
9.5
|
0.5
|
10.0
|
|
Closing AUA
|
56.1
|
30.4
|
86.5
|
5.7
|
92.2
|
|
|
|
|
|
|
|
|
Closing AUM
|
3.5
|
1.9
|
5.4(4)
|
1.4(5)
|
6.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended
30 September
2023
|
Advised
Platform
|
D2C
Platform
|
Total Platform
|
Non-platform
|
Total
|
|
|
|
|
|
|
|
|
Opening customers (k)
|
146
|
280
|
426
|
15
|
441
|
|
Closing customers (k)
|
159
|
317
|
476
|
15
|
491
|
|
|
|
|
|
|
|
|
AUA and AUM
(£billion)
|
|
|
|
|
|
|
Opening AUA
|
44.8
|
19.3
|
64.1
|
5.1
|
69.2
|
|
|
|
|
|
|
|
|
Inflows(1)
|
5.0
|
4.3
|
9.3
|
0.2
|
9.5
|
|
Outflows(2)
|
(3.1)
|
(2.0)
|
(5.1)
|
(0.3)
|
(5.4)
|
|
Net inflows/(outflows)
|
1.9
|
2.3
|
4.2
|
(0.1)
|
4.1
|
|
|
|
|
|
|
|
|
Market and other
movements(3)
|
1.5
|
1.1
|
2.6
|
0.2
|
2.8
|
|
Closing AUA
|
48.2
|
22.7
|
70.9
|
5.2
|
76.1
|
|
|
|
|
|
|
|
|
Closing AUM
|
2.5
|
1.3
|
3.8(4)
|
0.9(5)
|
4.7
|
(1) Transfers-in,
subscriptions, contributions and tax relief
(2) Transfers-out,
cash withdrawals, benefits and tax payments
(3) Total
investment returns and revaluations, net of charges
and taxes
(4) Platform AUA which is held in AJ
Bell's Funds or Managed Portfolio Service
(5) Assets which are held in AJ Bell's
Funds or Managed Portfolio Service via third-party
platforms
Contacts:
AJ Bell
|
·
|
Shaun Yates, Investor Relations
Director
|
+44 (0) 7522 235 898
|
|
·
|
Mike Glenister, Head of
PR
|
+44 (0) 7719 554 575
|
Historical customer numbers, AUA and AUM by
quarter
|
Advised
Platform
|
Qtr to
30
September
2023
|
Qtr to
31
December
2023
|
Qtr to
31
March
2024
|
Qtr to
30
June
2024
|
Qtr to
30
September
2024
|
|
|
|
|
|
|
|
|
Customers (k)
|
159
|
161
|
165
|
168
|
171
|
|
|
|
|
|
|
|
|
AUA
and AUM (£billion)
|
|
|
|
|
|
|
Opening AUA
|
47.8
|
48.2
|
51.0
|
53.4
|
54.9
|
|
|
|
|
|
|
|
|
Inflows(1)
|
1.2
|
1.5
|
1.7
|
1.7
|
1.6
|
|
Outflows(2)
|
(0.8)
|
(0.9)
|
(1.1)
|
(1.2)
|
(1.1)
|
|
Net inflows
|
0.4
|
0.6
|
0.6
|
0.5
|
0.5
|
|
|
|
|
|
|
|
|
Market and other
movements(3)
|
-
|
2.2
|
1.8
|
1.0
|
0.7
|
|
Closing AUA
|
48.2
|
51.0
|
53.4
|
54.9
|
56.1
|
|
|
|
|
|
|
|
|
Closing AUM(4)
|
2.5
|
2.8
|
3.2
|
3.4
|
3.5
|
|
D2C
Platform
|
Qtr to
30
September
2023
|
Qtr to
31
December
2023
|
Qtr to
31
March
2024
|
Qtr to
30
June
2024
|
Qtr to
30
September
2024
|
|
|
|
|
|
|
|
|
Customers (k)
|
317
|
323
|
338
|
360
|
371
|
|
|
|
|
|
|
|
|
AUA
and AUM (£billion)
|
|
|
|
|
|
|
Opening AUA
|
22.0
|
22.7
|
25.2
|
26.9
|
28.8
|
|
|
|
|
|
|
|
|
Inflows(1)
|
1.3
|
1.2
|
1.7
|
2.0
|
1.7
|
|
Outflows(2)
|
(0.6)
|
(0.5)
|
(0.7)
|
(0.8)
|
(0.7)
|
|
Net inflows
|
0.7
|
0.7
|
1.0
|
1.2
|
1.0
|
|
|
|
|
|
|
|
|
Market and other
movements(3)
|
-
|
1.8
|
0.7
|
0.7
|
0.6
|
|
Closing AUA
|
22.7
|
25.2
|
26.9
|
28.8
|
30.4
|
|
|
|
|
|
|
|
|
Closing AUM(4)
|
1.3
|
1.4
|
1.5
|
1.7
|
1.9
|
|
Non-platform
|
Qtr to
30
September
2023
|
Qtr to
31
December
2023
|
Qtr to
31
March
2024
|
Qtr to
30
June
2024
|
Qtr to
30
September
2024
|
|
|
|
|
|
|
|
|
Customers (k)
|
15
|
15
|
15
|
15
|
15
|
|
|
|
|
|
|
|
|
AUA
and AUM (£billion)
|
|
|
|
|
|
|
Opening AUA
|
5.3
|
5.2
|
5.4
|
5.5
|
5.6
|
|
|
|
|
|
|
|
|
Inflows(1)
|
0.1
|
-
|
0.1
|
0.1
|
0.1
|
|
Outflows(2)
|
(0.2)
|
-
|
(0.1)
|
(0.1)
|
(0.1)
|
|
Net outflows
|
(0.1)
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Market and other
movements(3)
|
-
|
0.2
|
0.1
|
0.1
|
0.1
|
|
Closing AUA
|
5.2
|
5.4
|
5.5
|
5.6
|
5.7
|
|
|
|
|
|
|
|
|
Closing AUM(5)
|
0.9
|
1.0
|
1.1
|
1.2
|
1.4
|
|
|
|
|
|
|
|
|
Total closing AUA
|
76.1
|
81.6
|
85.8
|
89.3
|
92.2
|
|
|
|
|
|
|
|
|
Total closing AUM
|
4.7
|
5.2
|
5.8
|
6.3
|
6.8
|
(1) Transfers-in,
subscriptions, contributions and tax relief
(2) Transfers-out,
cash withdrawals, benefits and tax payments
(3) Total
investment returns and revaluations, net of charges
and taxes
(4) Platform AUA which is held in AJ
Bell's Funds or Managed Portfolio Service
(5) Assets which are held in AJ Bell's
Funds or Managed Portfolio Service via third-party
platforms
About AJ
Bell:
Established in 1995, AJ Bell is one of the
largest investment platforms in the UK, operating at
scale in both the advised and direct-to-consumer
markets.
Our purpose is to help people invest by
providing them with easy access to Pensions, ISAs and General
investment accounts, great customer service and competitive
charges.
Our two core platform propositions are AJ Bell
in the D2C market and AJ Bell Investcentre in the advised market,
which both provide access to a broad investment range including
shares and other instruments traded on the major stock exchanges
around the world, as well as all mainstream collective investments
available in the UK and our own range of AJ Bell funds.
In the D2C market we also offer AJ Bell Dodl, a
low-cost investment app with a simplified investment range that
makes it easier for customers to choose investments and buy and
sell them without paying any commission.
For D2C cash savers we offer a Cash savings hub
which provides access to a range of competitive savings accounts to
help people manage their long-term cash deposits.
AJ Bell is headquartered in Manchester, UK,
with offices in London and Bristol.
Forward-looking
statements
This announcement contains
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 this announcement 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 this announcement.