AJ Bell increased profits before tax by 33% in its first 12 months as a listed company.
The platform group’s final results for the year ended 30 September revealed profit before tax reached £37.7m over the period, compared with £28.4m in 2018.
AJ Bell, which listed on the main market of the LSE in December 2018, saw revenue jump 17% to £104.9m, from £89.7m in 2018, while assets under administration increased 13% to £52.3bn from £46.1bn the year before.
The platform also added 34,154 retail customers during the period to reach 232,066 – a 17% increase. AJ Bell Investcentre and AJ Bell Youinvest grew customer numbers by 11% and 27% respectively.
It noted a marginal increase in the customer retention rate of 95.4% compared with 95.1% in 2018.
AJ Bell chief executive Andy Bell (pictured) said: “The structural growth drivers for investment platforms in the UK remain strong and if we continue to meet the needs of customers we are well placed to benefit from these over the coming years.”
‘Capitalism and socialism working hand in hand’
Alongside the results, AJ Bell committed £10m to charity if increases its earnings per share by at least 100% over three years and at least 150% over five years.
The initiative is part of AJ Bell’s corporate social responsibility strategy with share options being granted in favour of the AJ Bell Trust, a registered charity set up by Bell to predominantly support disadvantaged young people in the UK. AJ Bell customers and staff will be given the opportunity to nominate which underlying causes should benefit.
If the performance targets are not met in part or in full, Bell has committed to make up any shortfall with a personal donation to reach the promised £10m.
Bell said: “If we exceed our ambitious growth plans, our shareholders will benefit and we want to ensure some of that success is shared with the less fortunate in society. Here we have an example of capitalism and socialism working hand in hand as a combined force for good.”
