Surging AJ Bell share price justified despite 4% fall in assets

Share price jumps almost 80% since IPO

AJ Bell profits jump 24% ahead of planned IPO

AJ Bell’s surging share price has been attributed to “strong fundamentals and robust long-term potential” as the platform publishes its first quarterly update since its initial public offering in December.

AJ Bell said platform customer numbers increased by 7,285 to 190,498, up 4% during the period and underlying platform inflows increased 20% to £1.2bn, compared to £1.0bn in the same period last year. But negative market movements wiped £2.7bn from its total AUA which totalled £44.2bn.

The stock is currently trading around 285p, significantly higher than its 160p price at listing, which quickly surged to 220p on the first day of conditional dealing. Portfolio Adviser reported at the time that major shareholder Invesco had missed £46m in upside following the IPO.

Bella Caridade-Ferreira, CEO at Fundscape, said its share price is evidence of “a sound business, strong fundamentals and robust long-term potential”. “Its trading expensively on its own merits and business mix.”

Caridade-Ferreira said the platform had done well post IPO. “Assets have obviously declined marginally but given market turbulence every platform will be in the same boat.”

Andy Bell (pictured), chief executive officer at AJ Bell, said the firm remains on track to hit its goals and that it had attracted new customers and inflows to the platform, despite volatile investment markets.

Bell added that the FCA is due to deliver the final report of its investment platforms market study and based on its interim report, this is expected to focus on value for money and easier transfers between platforms.

“Our competitive pricing model and service proposition means we are well positioned to benefit from anticipated developments in these areas,” he said.

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