AJ Bell, one of the UK’s largest investment platforms, today announces its final results for the year ended 30 September 2021.
Highlights
- A record year of growth, with total customers up by 87,449 to 382,754, net inflows of £6.4 billion and assets under administration (AUA) closing at a record £72.8 billion
- Customer retention rate remained high at 95.0% (FY20: 95.5%)
- Strong financial performance, with revenue up 15% to £145.8 million (FY20: £126.7 million) and profit before tax (PBT) up 13% to £55.1 million (FY20: £48.6 million)
- Diluted earnings per share up 13% to 10.67 pence (FY20: 9.47 pence)
- Strong financial position, with net assets up 19% in the year to £130.7 million (FY20: £109.5 million)
- Final dividend of 4.50 pence per share proposed, increasing the total ordinary dividend for the year by 13% to 6.96 pence per share (FY20: 6.16 pence per share)
- Special dividend of 5.00 pence per share proposed (FY20: nil), taking the total dividend for the year to 11.96 pence per share (FY20: 6.16 pence per share)
Andy Bell, Chief Executive Officer at AJ Bell, commented:
“Our award-winning platform propositions attracted record levels of new customer numbers and inflows in the year, underpinning another strong set of financial results. Revenue was up 15%, profit before tax up 13% and earnings per share up 13%. Our profitable business model and strong financial position has enabled us to invest significantly in our customer propositions during the year, whilst also increasing dividends to shareholders.
“The Board has recommended a final dividend of 4.50 pence per share, increasing the total ordinary dividend for the year by 13% to 6.96 pence per share, our 17th consecutive year of ordinary dividend growth. Reflecting the Board’s confidence in the outlook for the business, it has also recommended a special dividend of 5.00 pence per share in line with our policy to periodically return surplus capital to shareholders whilst continuing to maintain our strong financial position.
“We continue to see significant long-term opportunities in the investment platform market. The pandemic has highlighted the need for people to take more control over their financial future, with increasing numbers of people investing for the first time. We believe there is increasing demand for simplified, app-based investment propositions in both the D2C and advised markets, so we are investing in two which we will soon bring to market.
“Dodl by AJ Bell, a new investment app, will enable retail investors to invest easily in a range of UK equities and funds, via a full range of tax wrappers. There will be no commission on buying and selling investments and a low annual platform charge of 0.15%.
“Touch by AJ Bell is a new mobile-led investment platform for financial advisers, which will enable them to provide an entirely digital service to clients who want that form of relationship and expand the range of client profiles they can serve.
“These two new propositions will sit alongside our flagship platform propositions, AJ Bell Youinvest and AJ Bell Investcentre, broadening our reach in both the D2C and advised markets. We expect both to launch during 2022 and we will be investing further in our brand and marketing activities to support their initial phase of growth.
“The continued strong growth of the business and the development of innovative new propositions would not be possible without the energy and commitment of our staff. As well as strengthening our Board and senior management team, we have put new processes and a hybrid working model in place to provide our staff with a safe, energetic working environment for the post-pandemic era. I would like to thank them all for their continued hard work and focus, during what has been a very challenging time for many.”
Financial highlights
| Year ended
30 September 2021 |
Year ended
30 September 2020 |
Change | |
| Revenue | £145.8 million | £126.7 million | 15% |
| Revenue per £AUA | 22.2bps | 23.9bps | (1.7bps) |
| PBT | £55.1 million | £48.6 million | 13% |
| PBT margin | 37.8% | 38.4% | (0.6ppts) |
| Diluted earnings per share | 10.67 pence | 9.47 pence | 13% |
| Total ordinary dividend per share | 6.96 pence | 6.16 pence | 13% |
| Total special dividend per share | 5.00 pence | nil | n/a |
Non-financial highlights
| Year ended
30 September 2021 |
Year ended
30 September 2020 |
Change | |
| Number of retail customers | 382,754 | 295,305 | 30% |
| – Platform | 367,965 | 281,094 | 31% |
| – Non-platform | 14,789 | 14,211 | 4% |
| AUA | £72.8 billion | £56.5 billion | 29% |
| – Platform | £65.3 billion | £49.7 billion | 31% |
| – Non-platform | £7.5 billion | £6.8 billion | 10% |
| AUM | £2.2 billion | £0.8 billion | 175% |
| Customer retention rate | 95.0% | 95.5% | (0.5ppts) |
