AJ Bell is predicting to smash its revenue forecast for the year by at least £6m as it continues to see a surge in customer numbers and trading activity.
In an RNS update the FTSE 250 platform group said it had seen “strong customer acquisition” in the first half of the current financial year and that dealing activity by D2C customers had “remained at elevated levels throughout”.
Though AJ Bell, led by chief executive Andy Bell (pictured), expects dealing activity to let up over the second half of the year ended 30 September 2021, it now expects revenue to come in at £136m, some £6m higher than initial projections.
Analysts currently expect profit before tax to hit £50.6m in 2021 and £51.4m the following year.
Last year AJ Bell saw trading activity across its platform surge as investors, many of whom were first time punters with spare time and cash during lockdown, raced to take advantage of Covid-induced volatility.
Its total customers were up 27% to 295,305, while platform assets under administration climbed 11% to £49.7bn compared with the previous year.
AJ Bell’s expectation-beating projections are similar to forecasts from rival platforms. Earlier this month Hargreaves Lansdown said it expected profits before tax to be “modestly above the top end of analyst expectations” following the flurry of activity around Gamestop and other heavily shorted stocks.
See also: Hargreaves Lansdown anticipates profit boost from Gamestop mania
Shares in AJ Bell were up 1.2% at 413p on the back of Monday’s announcement.
Further information on customer numbers and assets under administration and management will be provided in its Q2 trading update on 22 April.
See also: AJ Bell vows to invest in tech after November meltdown
