REG - AJ Bell PLC - Final Results
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RNS Number : 1651K AJ Bell PLC 04 December 2025
4 December 2025
AJ Bell plc
Final results for the year ended 30 September 2025
AJ Bell plc ('AJ Bell' or the 'Company'), one of the UK's largest investment
platforms, today announces its final results for the year ended 30 September
2025.
Highlights
Financial performance
● Record financial performance, with revenue up 18% to £317.8 million (FY24:
£269.4 million) and profit before tax (PBT) up 22% to £137.8 million (FY24:
£113.3 million), after exceptional costs of £1.1 million (FY24: £6.2
million)
● PBT margin of 43.4% (FY24: 42.0%) demonstrates the strength of our scalable
business model, driven by increased revenue margin of 32.3bps (FY24: 31.6bps)
and operational gearing benefits, after absorbing the impact of additional
business investment
● Diluted earnings per share up 26% to 25.56 pence (FY24: 20.34 pence)
Shareholder returns
● Final dividend of 9.75 pence per share proposed, increasing the total ordinary
dividend for the year by 14% to 14.25 pence per share (FY24: 12.50 pence), the
21(st) consecutive year of ordinary dividend growth
● Following the share buyback programme executed in the year, we have announced
a further buyback programme of up to £50 million, to be completed throughout
FY26. This reflects our strong cash generation, healthy capital position and
commitment to return surplus capital to shareholders
Operational performance
Platform business
● Excellent growth in customer numbers across AJ Bell's dual-channel platform,
with 102,000 customers added to close at 644,000, up 19% in the year
● Record assets under administration (AUA) of £103.3 billion (FY24: £86.5
billion), up 19% in the year driven by net inflows of £7.5 billion (FY24:
£6.1 billion) and favourable market movements of £9.3 billion
● Market-leading customer service levels evidenced by AJ Bell's Trustpilot
rating of 4.9-stars and customer retention rate of 94% (FY24: 94%)
AJ Bell Investments
● Assets under management ("AUM") up 31% in the year to a record £8.9 billion
(FY24: £6.8 billion)
● Strong net inflows in the year of £1.3 billion (FY24: £1.5 billion)
Non-platform business
● The sale of our Platinum SIPP and SSAS business completed on 3 November 2025
Outlook
● The UK platform market continues to offer a significant growth opportunity,
with over two-thirds of the estimated £3.7 trillion addressable still held
outside of the platform market
● Our business investments have delivered record growth in FY25, attracting new
customers across all age groups with strong lifetime values. Building on our
success, we will increase investment in our brand and propositions in FY26 to
accelerate growth
● Management remains confident in the outlook. We are prioritising investment
for long-term growth, while the operational gearing inherent in our business
model provides opportunities for PBT margin expansion beyond FY26
Michael Summersgill, Chief Executive Officer at AJ Bell, commented:
"I am pleased to report an excellent year for AJ Bell. Our dual-channel
platform delivered record organic growth, attracting over 100,000 new
customers and £7.5 billion of net inflows, resulting in platform AUA closing
at £103.3 billion. These results reflect the strength of our market-leading
customer service, trusted brand and low-cost, easy-to-use propositions.
"We delivered record financial performance, with revenue up 18% to £317.8
million and profit before tax up 22% to £137.8 million. Our scalable business
model continues to deliver operational gearing, enabling us to reinvest the
benefits of scale to drive long-term growth. Over the past year, we increased
investment in our brand, marketing and propositions, supporting record levels
of new business.
"Our highly-cash generative business model and strong capital position allow
us to invest whilst also delivering excellent value for customers and
increasing shareholder returns. We are pleased to recommend an increase to our
ordinary dividend for the 21st successive year, alongside a new share buyback
programme, returning up to £50 million to shareholders throughout FY26.
"There was little to cheer in last week's UK Budget. We have consistently
advocated for ISA simplification, our views being backed by behavioural
research showing how removing complexity can help to increase retail
investment activity in the UK. However, the reforms proposed take the ISA
market in the opposite direction. ISAs will now see complexities such as an
age-specific annual allowance for Cash ISAs and HMRC levying a charge on cash
held in Stocks & Shares ISAs. Despite these interventions in the market,
we are confident we can continue to provide an easy-to-use service and help
customers to navigate this additional complexity successfully.
"While no changes were made to the key incentives in the current pension
system - namely, the deferral of income tax on pension contributions and a
tax-free entitlement on pension withdrawals - uncertainty in the lead up to
the Budget resulted in heightened pension withdrawals as customers approaching
retirement responded to the extensive speculation. Government must do more to
provide pension savers with a clear commitment to tax stability and we will
continue to campaign for a 'Pensions Tax Lock' to deliver that certainty.
"The broader long-term structural market growth drivers remain strong, as more
individuals recognise the importance of taking control of their financial
future. Looking ahead, I am confident in the outlook for both AJ Bell and the
UK platform market. Our dual-channel platform, combined with our scalable
operating model, positions us to capitalise on the significant growth
opportunity. In FY26, we will continue to invest in the business, ensuring we
are well-placed to deliver sustainable long-term business growth."
Financial highlights
Year ended Year ended Change
30 September 2025 30 September 2024
Revenue £317.8 million £269.4 million 18%
Revenue per £AUA* 32.3bps 31.6bps 0.7bps
PBT £137.8 million £113.3 million 22%
PBT margin 43.4% 42.0% 1.4ppts
Diluted earnings per share 25.56 pence 20.34 pence 26%
Total ordinary dividend per share 14.25 pence 12.50 pence 14%
Non-financial highlights
Year ended Year ended Change
30 September 2025 30 September 2024
Number of retail customers 657,000 557,000 18%
- Platform 644,000 542,000 19%
- Non-platform 13,000 15,000 (13%)
AUA* £108.2 billion £92.2 billion 17%
- Platform £103.3 billion £86.5 billion 19%
- Non-platform £4.9 billion £5.7 billion (14%)
AUM* £8.9 billion £6.8 billion 31%
Customer retention rate 94.1% 94.2% (0.1ppts)
*see definitions
Contacts:
AJ Bell
● Mark Coxhead, Head of Investor Relations +44 (0) 7761 513 512
● Mike Glenister, Head of PR +44 (0) 7719 554 575
Results presentation details
A pre-recorded video with Michael Summersgill (CEO) and Peter Birch (CFO)
discussing these results will be available on our website
(ajbell.co.uk/investor-relations (http://www.ajbell.co.uk/investor-relations)
) along with an accompanying investor presentation from 07.00 GMT today.
Management will be hosting a meeting for sell-side analysts at 09.30 GMT
today. Attendance is by invitation only.
Management will also be hosting a group call for investors at 15.00 GMT today.
Please contact Kate Street at kstreet@jefferies.com
(mailto:kstreet@jefferies.com) for registration details.
Forward-looking statements
The full year results contain 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 these full year results 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 these results.
Chair's statement
"These impressive results reflect the strength and focus of our management
team and our people."
Dear shareholder
I am delighted to begin this statement by reflecting on another excellent set
of results for the business, with impressive growth in both our total customer
numbers and AUA. Over the past 12 months, total customer numbers have
increased by 100,000 to 657,000 and we delivered £7.5 billion of platform net
inflows, ending the year with total AUA of £108.2 billion. We have also
delivered PBT growth of 22% to £137.8 million whilst managing our underlying
costs and continuing to invest in the business.
This is a testament to the strength of our management team and our people, who
consistently deliver with purpose and efficiency. Their continued focus on
providing outstanding service, at a low cost for our customers, is fundamental
to our success. It also demonstrates the strength of our brand and the
potential for sustained long-term growth, which Michael outlines in more
detail in the CEO review.
Over the past year, the Board has focused on our long-term strategy and
articulating our vision for AJ Bell. Having doubled the size of the platform
business in the past five years, we are now looking ahead and setting
ourselves ambitious targets to scale the platform and deliver for all of our
key stakeholders.
Culture, purpose and stakeholder engagement
The Board monitors and reviews our culture through both the culture dashboard
and the broader feedback that we receive from employees. This year, we were
officially certified by Great Place to Work(®) for the second year running,
maintaining our score of 83%. I was also delighted that, following our first
year of entry, AJ Bell placed tenth overall in the Super Large category of
their UK's Best Workplaces(™).
Alongside that, the business continues to operate an annual free share scheme
and 81% of our employees now hold shares in AJ Bell. Having our teams invested
in the success of the business in this way is one of the key drivers behind
our strong culture.
During the year, in my role as the nominated Employee Engagement Director, I
engaged with our Employee Voice Forum (EVF). The EVF is a great way to gather
perspectives across key areas that really matter to our people. Once again, I
have found these to be high-quality discussions covering a range of topics,
including how we can make our products and services better for our customers.
It has been a real pleasure to join fellow Non-Executive Directors and our
CFO, Peter Birch, in seeing the levels of collaboration and enthusiasm during
these sessions.
This year we celebrated a significant milestone for the AJ Bell Foundation,
which has now donated over £1 million since its launch in 2023, providing
valuable support to our local communities and beyond. The purpose of the
Foundation is to create long-term impact in communities by supporting
initiatives that improve education, social mobility, and overall wellbeing.
We have continued to maintain a high level of engagement with our shareholders
this year. I recently attended a shareholder dinner with our Senior
Independent Director, Evelyn Bourke. This was a great opportunity to listen to
our shareholders' views on the business and how they feel management is
performing. The event was thoroughly enjoyable with some really positive
feedback, which reaffirmed my confidence in both our leadership and our
long-term strategic direction.
Capital allocation
During the year, we have returned £44.6 million of surplus capital to
shareholders via our share buyback programmes. This reflects our confidence in
the long-term prospects of the business and the strength of our capital
position.
In line with our commitment to a progressive dividend, the Board is pleased to
announce a final ordinary dividend of 9.75 pence per share. The final ordinary
dividend will be paid, subject to shareholder approval at our AGM on 4
February 2026, to shareholders on the register at the close of business on 15
January 2026.
This brings the total ordinary dividend for the financial year to 14.25 pence
per share, representing an increase of 14% on the previous year.
Consideration of our wider stakeholders in some of our key decisions in the
year are outlined in our Section 172 statement.
Board structure and updates
Following a number of changes in 2024, the composition of the Board has
remained stable in 2025.
The Board benefits from a wide array of skills and experience which we
continually keep under review. Following last year's external Board
evaluation, we wanted to further enhance our effectiveness and optimise our
strategic decision-making capabilities. Diversity of thought has previously
been recognised as one of the Board's key strengths. To delve deeper into this
area, we engaged an external facilitator for part of our Board Strategy Day.
This session resulted in a set of objectives focused on various aspects,
including the advantages of disruptive thinking.
With respect to the diverse range of experience represented on the Board, I
have been delighted with the contributions from our newest Non-Executive
Directors, Fiona Fry and Julie Chakraverty. Since joining us, Fiona has
brought a fresh perspective to her role as Chair of the Risk & Compliance
Committee, and we have benefitted from her many years of risk advisory
experience, as she has aided in further embedding our risk management
framework within the business. Julie has also brought valuable insight that
has enriched our discussions around our technology strategy, particularly user
experience and cybercrime.
Evelyn Bourke, Senior Independent Director, will be stepping down from the
Board as a Non-Executive Director of the Company with effect from 4 February
2026 and will therefore not be seeking re-election at the Company's
forthcoming AGM. On behalf of the Board, I would like to express my enormous
gratitude to Evelyn for her invaluable contribution since joining the Board in
July 2021. I personally wish to thank her for the support she has provided as
Senior Independent Director and for her wisdom and humour. I wish her the very
best for the future.
Fiona Fry, Chair of the Risk & Compliance Committee, has kindly agreed to
take on the role of Senior Independent Director and I look forward to working
with her as she takes on this additional role.
Succession planning remains a priority, and we will consider Non-Executive
Director succession during 2026, alongside our existing focus on Executive
Committee succession.
Looking ahead
AJ Bell continues to be a highly cash-generative business, supported by a
consistent track record of delivering growth. The recent sale of our Platinum
SIPP and SSAS business, which completed after the year end in November, has
streamlined our business model, allowing us to focus on further enhancing our
dual-channel platform.
As we embark upon our ambitious growth plans, the Board's role in sustaining
our strong and unique culture will be crucial. This includes balancing the
focus on efficiency and scalability, without compromising on our core purpose
of helping people to invest.
Although we have seen strong performance in the markets this year, there
remains volatility and uncertainty in the macroeconomic environment. However,
there are clearly significant opportunities within the platform market. With
our strategic direction and continued excellence in providing a low-cost and
easy-to-use platform, the Board is confident that the business is well
positioned to take advantage of these opportunities.
On behalf of the Board, I would like to thank our management team and all of
our people for their hard work and dedication during what has been another
highly successful year.
Fiona Clutterbuck
Chair
3 December 2025
Chief Executive Officer's review
"This has been another excellent year for the business, surpassing £100
billion in platform AUA and attracting over 100,000 new customers to our
platform. We're continuing to invest in our brand and propositions to drive
growth in a market with significant opportunity."
Sustained growth in an expanding market
Our dual-channel platform delivered a record increase in customer numbers in
the year and platform AUA surpassed £100 billion, a significant milestone for
the business. These achievements are underpinned by our market-leading
customer service, trusted brand and low-cost, easy-to-use propositions.
Over the past five years, we have successfully doubled the size of our
platform business, continually investing in our brand, digital marketing
capability and product change delivery to drive that growth.
With two-thirds of the estimated £3.7 trillion addressable market still held
off-platform, our dual-channel model, serving both the advised and D2C
markets, together with our strong capital position, enables us to capitalise
on this significant growth opportunity. We will continue to invest in our
business to position us to increase our share of the growing platform market.
Excellent results
Platform customers increased by a record 102,000 in the year, representing
growth of 19% to finish the year at 644,000 (FY24: 542,000). Platform AUA has
risen by 19% to £103.3 billion (FY24: £86.5 billion) and we delivered
platform net inflows of £7.5 billion, a 23% increase on the prior year (FY24:
£6.1 billion).
Our performance in the D2C market has been a particular highlight, with record
growth in new customers reflecting the success of multi-year investment to
increase brand awareness and digital marketing capabilities. Our advised
proposition delivered robust growth, with record gross inflows offset by
heightened outflows. There were two principal causes of these outflows:
elevated pension lump sum withdrawals caused by the uncertainty surrounding
the 2024 and 2025 UK budgets, and increased transfers out following adviser
consolidation activity. Global equity markets recovered strongly from the
market volatility experienced in spring, with favourable market movements
contributing £9.3 billion (FY24: £9.5 billion) to total platform AUA.
AJ Bell Investments' AUM increased by 31% to £8.9 billion (FY24: £6.8
billion). Our award-winning range of simple, low-cost investment solutions
continues to grow, with strong inflows from both advised and D2C customers.
Our diversified revenue model delivered revenue growth of 18% to £317.8
million (FY24: £269.4 million), with an increase across our custody fee,
interest income and dealing commission revenue streams.
Profit before tax increased by 22% to £137.8 million (FY24: £113.3 million),
driven by operational gearing and higher revenue margins in the period,
notwithstanding this being the first full year following implementation of our
price reductions package in April 2024.
Shareholder returns and capital
We have a track record of achieving consistently strong growth whilst
returning capital to shareholders. In FY25, we have returned £96.9 million to
shareholders via two share buyback programmes, which together totalled £44.6
million, and dividends of £52.3 million. A further £7.9 million of shares
were repurchased after the year end. This year, our record financial results
and strong capital position enable us to recommend an increase to our ordinary
dividend for the twenty-first successive year. Given our significant surplus
capital, we are also initiating a new share buyback programme of up to £50
million, which will run throughout the entirety of FY26.
Investing for growth
Our highly scalable business model enables us to drive operational gearing and
continually reinvest into the growth of the business.
Each year, we leverage our scale, enabling us to manage our costs effectively
and ensuring we can sustain our highly competitive pricing levels over the
long term. Despite widespread inflationary pressures, we were able to
introduce a package of price reductions and increased interest rates paid on
customer cash balances in 2024, which taken together deliver annualised
savings to customers of over £20 million.
This year we extended the length and reach of our multi-channel 'Feel good
investing' advertising campaign, which complemented our title sponsorship of
the Great Run Series, resulting in brand awareness and D2C new business
reaching record levels. We are also constantly evolving our digital marketing
capabilities in line with market and customer trends. This is enabling us to
effectively and efficiently reach our target market, providing a solid
foundation for further growth in customer numbers and gross flows.
We have also accelerated the pace of our change delivery to drive continuous
improvement in our propositions, with a focus on ease of use. This includes
increasing automation in the adviser journey, allowing advisers to serve their
clients more efficiently, and launching a new D2C website that offers improved
navigation and enhanced content delivery. Since the launch of the new website,
engagement has improved significantly, with the average session duration
increasing by 58% and returning visitors up 16%. Development is underway to
launch a new AJ Bell app in FY26 as we aim to deliver a more tailored
investing experience for our customers.
Given the success of our investment in these growth drivers, we are planning
significant additional spend on our brand, marketing capabilities and
propositions to drive further organic growth in FY26.
Our people are integral to our continued growth, and I am pleased to report
that our high level of staff engagement has enabled us to achieve Great Place
to Work(®) certification, placing us among the top 10 in the Super Large
category of their UK's Best Workplaces(™) for 2025. Our ongoing investment
in pay and benefits, including a free share scheme that now sees 81% of
employees holding company shares, supports a strong, purpose-led culture. This
is reflected through our exceptional customer service which has seen us
achieve a market-leading 4.9-star Trustpilot rating for the first time. Even
during periods of peak demand in response to market volatility, our teams'
commitment to serve our customers shone through, with 96% of calls in the year
answered within just 20 seconds.
In November 2025 we completed the sale of our Platinum SIPP and SSAS business
(part of our non-platform business) to InvestAcc Group Limited for a total
consideration of up to £25 million. The disposal simplifies our business
model and enables us to focus on growing our dual-channel platform business.
Proceeds from the sale will be flowed through the Group's capital allocation
framework.
Campaigning for better customer outcomes
Although encouraged by the Government's stated aim to encourage retail
investing and the progress made on the development of Targeted Support, there
is little else in the policy pipeline that will help to achieve that goal.
Having pledged to simplify ISAs ahead of the general election, the reforms
outlined at the UK Budget will add significant complexity to the ISA
landscape. Capping the Cash ISA allowance at £12,000 from April 2027 creates
a hard border between short-term cash saving and long-term investing, when all
the behavioural evidence suggests removing that friction is the key to
boosting retail investing. The decision to exempt those aged 65 and over from
this restriction will layer on yet more complexity, as will the ban on
transfers from Stocks & Shares ISAs to Cash ISAs.
The Government says the aim of these reforms is to encourage more people to
invest for the long-term, but plans for HMRC to levy a charge on cash held
within Stocks & Shares ISAs suggest raising extra tax revenue is actually
part of the motivation. Exactly how this will work, or what a new 'test' on
cash-like investments will involve remain entirely unclear, leaving investors
dealing with unhelpful uncertainty on top of unnecessary complexity. In spite
of this, we are confident we can continue to provide an easy-to-use service
that help customers to navigate this additional complexity successfully.
Confirmation via briefings to the press that pensions tax-free cash would not
be touched helped reduce uncertainty somewhat, but failed to deal with the
underlying issue. Without a long-term commitment to not changing the tax-free
cash entitlement or the deferral of income tax on pension contributions,
rumours will inevitably surface ahead of every UK Budget. Committing to a
'Pension Tax Lock' would be a nil-cost way to put this speculation to bed.
The unwelcome theme of unnecessary complexity and poorly constructed policy
has also been demonstrated in this Government's decision to bring unspent
pensions into inheritance tax (IHT) from April 2027. This will inevitably lead
to significant administrative pain for bereaved families and delays in paying
money to beneficiaries. As with ISA reform, the Government has chosen
complexity when simpler alternatives were available.
Despite what is clearly a challenging policy environment, we will continue to
push for simplicity where change is warranted, stability where it is not and
make sure our platform helps advisers and customers to navigate the
complexity.
Outlook
Our dual-channel business model has demonstrated resilience in a range of
market conditions, with our diversified revenue streams consistently
delivering strong financial performance. The long-term drivers shaping our
industry reinforce the growing need for individuals to take control of their
finances, and our range of award-winning services mean we are well placed to
meet this societal need.
Our strong capital position allows us to accelerate our strategy by investing
further in our distribution capabilities and product propositions. We are
focused on enhancing our key capabilities across the organisation and driving
efficiencies in our operating model, to maintain both the speed and scale of
our platform growth. We have an exciting market opportunity in front of us and
a clear strategy todrive organic growth.
Finally, I would like to extend a thank you to the whole team at AJ Bell.
Their ongoing commitment is fundamental to our success, and I look forward to
working with them as we deliver on our long-term growth ambition.
Michael Summersgill
Chief Executive Officer
3 December 2025
Financial review
"Our scalable and efficient business model has delivered another excellent set
of results. We are leveraging our financial strength to invest in key growth
drivers of our business and deliver sustainable growth."
Overview
We are pleased to report another year of excellent results, with customer
numbers, AUA, revenue and profit reaching record highs.
Our dual-channel platform once again delivered strong total platform net
inflows of £7.5 billion (FY24: £6.1 billion) and customer growth of 19%
(FY24: 14%). This resulted in total platform AUA surpassing £100 billion for
the first time, a significant milestone for the business, reflecting the
success of our targeted investments in our brand and propositions. Our
diversified revenue model performed strongly on all fronts in the year,
enabling us to deliver sustainable growth in revenues and profits. Revenue
increased by 18% to £317.8 million (FY24: £269.4 million), with increasing
margins driving PBT up 22% to £137.8 million (FY24: £113.3 million).
A key component of our strategy is generating operational gearing through
process optimisation and leveraging new technology. This enables us to contain
underlying cost growth, creating capacity for increased investment into the
growth drivers of our business. This disciplined approach is generating the
operational efficiencies we anticipated, and despite external cost pressures
in the year, we successfully reduced underlying cost growth and our cost to
serve per £AUA 1 (#_ftn1) reduced to 0.15 bps (FY24: 0.16 bps). This has
helped deliver strong financial performance, enabling us to accelerate
investment in long-term organic growth initiatives such as digital marketing
capabilities and proposition developments.
In line with the Group's capital allocation framework, we remain committed to
returning surplus capital to shareholders. Our highly cash-generative model
and strong capital position enable us to do this alongside investing heavily
in the business. Over the past financial year, we have launched two share
buyback programmes, returning a total of £44.6 million to our shareholders.
In addition, we have paid £52.3 million in dividends, resulting in total
shareholder distributions of £96.9 million in FY25. An additional £7.9
million of shares were repurchased after the year end.
Business performance
Customers
Platform customer numbers increased by a record 102,000 during the year to a
total of 644,000 (FY24: 542,000). Advised customers increased by 6%, whilst
D2C customers rose significantly, up by 25%, as our investment in brand
recognition continued to deliver results.
Our platform customer retention rate remained high at 94.1% (FY24: 94.2%).
Year ended 30 September 2025 Year ended 30 September 2024
'000 '000
Advised platform 182 171
D2C platform 462 371
Total platform 644 542
Non-platform 13 15
Total 657 557
Assets under administration
Year ended 30 September 2025
Advised platform D2C platform Total platform Non-platform Total
£bn £bn £bn £bn £bn
As at 1 October 2024 56.1 30.4 86.5 5.7 92.2
Underlying inflows 7.0 8.8 15.8 0.2 16.0
Underlying outflows (5.3) (3.4) (8.7) (1.1) (9.8)
Underlying net inflows / (outflows)¹ 1.7 5.4 7.1 (0.9) 6.2
Migration inflow / (outflows) - 0.4 0.4 (0.4) -
Total net inflows / (outflows) 1.7 5.8 7.5 (1.3) 6.2
Market and other movements 4.6 4.7 9.3 0.5 9.8
As at 30 September 2025 62.4 40.9 103.3 4.9 108.2
(1) Transfers in, subscriptions, contributions and tax relief less transfers
out, cash withdrawals, benefits and tax payments, excluding the impact of
intra-platform migrations.
Year ended 30 September 2024
Advised platform D2C platform Total platform Non-platform Total
£bn £bn £bn £bn £bn
As at 1 October 2023 48.2 22.7 70.9 5.2 76.1
Inflows 6.5 6.6 13.1 0.3 13.4
Outflows (4.3) (2.7) (7.0) (0.3) (7.3)
Net inflows 2.2 3.9 6.1 - 6.1
Market and other movements 5.7 3.8 9.5 0.5 10.0
As at 30 September 2024 56.1 30.4 86.5 5.7 92.2
We achieved total platform net inflows of £7.5 billion (FY24: £6.1 billion),
up 23% versus the prior year, reflecting the continued strength of our
customer proposition across both the advised and D2C markets.
Advised platform net inflows were £1.7 billion (FY24: £2.2 billion). We
delivered record gross inflows of £7.0 billion in the period (FY24: £6.5
billion), reflecting the success of the continued investment in our
propositions. Outflows in the year increased to £5.3 billion (FY24: £4.3
billion), primarily driven by elevated levels of client withdrawals in
response to speculation over pension lump sum tax changes ahead of the 2024
and 2025 UK budgets and, to a lesser extent, the impact of adviser
consolidation.
Total D2C platform net inflows were £5.8 billion (FY24: £3.9 billion). Gross
inflows increased to a record high of £8.8 billion (FY24: £6.6 billion),
reflecting the success of our multi-year brand investment as brand awareness
reached an all-time high. Our inflows also benefitted from the migration of
2,000 customers from the non-platform book as part of our planned exit from a
third-party SIPP administration arrangement. These customers moved to AJ
Bell's full platform service, leading to £0.4 billion of AUA transferring to
the platform. Outflows of £3.4 billion (FY24: £2.7 billion) remained stable
relative to the growth of the book.
We continue to implement our strategy to simplify the business model and focus
on the core platform market. This led to net outflows of £1.3 billion (FY24:
£nil) from our non-platform operations during the year, reflecting the
withdrawal from a third-party SIPP administration arrangement. The sale of the
Platinum business, which completed in November 2025, has resulted in outflows
of £3.3 billion in FY26 as we continue to focus on AJ Bell's core platform
business. We expect further outflows during FY26 once we exit our remaining
third-party SIPP arrangement.
Favourable market movements contributed £9.8 billion (FY24: £10.0 billion)
as global equity values recovered strongly from market volatility experienced
earlier in 2025. Overall, this resulted in platform AUA surpassing £100
billion for the first time, with closing AUA totalling £108.2 billion (FY24:
£92.2 billion).
Assets under management
Year ended 30 September 2025 Year ended 30 September 2024
£bn £bn
Advised 4.4 3.5
D2C 2.6 1.9
Non-platform 1 1.9 1.4
Total 8.9 6.8
(1) Non-platform AUM relates to AJ Bell funds and MPS' held on third-party
platforms.
Continued growth of our in-house investment solutions reflects the strength of
our propositions across both channels. We recorded net inflows of £1.3
billion, supported by strong investment performance that generated favourable
market movements of £0.8 billion, resulting in total AUM closing at £8.9
billion (FY24: £6.8 billion).
Financial performance
Revenue
Year ended 30 September 2025 Year ended 30 September 2024
£000 £000
Recurring fixed 32,496 32,078
Recurring ad valorem 232,384 202,040
Transactional 52,967 35,317
Total 317,847 269,435
Revenue increased by 18% to £317.8 million (FY24: £269.4 million).
Recurring fixed fees increased by 1% to £32.5 million (FY24: £32.1 million),
reflecting higher pension administration revenue from our advised platform
customers.
Recurring ad valorem revenue grew by 15% to £232.4 million (FY24: £202.0
million), driven by increased custody fee income and net interest income.
Custody fees increased as a result of higher average AUA on the platform. The
increase in net interest income reflects higher total average customer cash
balances on the platform in the period. We continue to use our scale to enable
us to pay market-competitive rates to customers on their cash balances, whilst
keeping other direct charges low. Further information on the impact to revenue
of changes to the UK base interest rate has been disclosed in note 25 to the
consolidated financial statements.
Transactional fees rose by 50% to £53.0 million (FY24: £35.3 million),
driven by higher dealing activity, reflecting a return to long-term average
levels. Foreign exchange (FX) revenue was particularly strong in the period
due to increased levels of dealing in overseas shares, primarily US shares
around the time of the US election, and in the aftermath of the US tariff
announcements.
Our consolidated revenue margin 2 (#_ftn2) increased to 32.3bps (FY24:
31.6bps) as a result of the increase in customer dealing activity noted above,
moderated by the full-year impact of pricing reductions introduced in the
prior year.
In FY26, we expect our revenue margins to moderate slightly, taking into
account the elevated levels of FX dealing activity experienced in the year. As
part of the wind down of our non-platform business, revenues of £12.7 million
recognised in FY25 will not recur in FY26.
Administrative expenses
Year ended 30 September 2025 Year ended 30 September 2024
£000 (re-presented)¹
£000
Distribution 36,631 29,801
Technology 55,141 47,107
Operational and support - underlying 92,977 79,010
Operational and support - exceptional 1,141 6,239
Total 185,890 162,157
(1) The comparative information has been re-presented to reflect the
reclassification of irrecoverable VAT and share-based payment expenses to
accurately reflect the cost categorisation, resulting in £2.8 million of
technology costs being reallocated to distribution costs (£0.2 million) and
operational and support costs (£2.6 million).
Total administrative expenses, excluding exceptional operating and support
costs, increased by 18% to £184.7 million (FY24: £155.9 million). Of this
total increase in the year, 9% relates to business investment, as we looked to
drive growth by reinvesting in our people, technology and brand.
Performance-related variable costs accounted for 3%, driven by increased
activity on our platform and strong financial performance, whilst the
remaining 6% consists of underlying cost growth. Staff costs across all
categories rose 20%, by £15.9 million, as we increased capacity to support
our growth and continued to reward our staff through enhancements to the
overall pay and benefits package.
Distribution costs increased by 23% to £36.6 million (FY24: £29.8 million).
Of this increase, 21% was driven by business investment into the delivery of
our multi-channel advertising campaign, alongside additional spend in our
digital marketing capabilities, which has resulted in record customer growth
and inflows to the D2C platform. We also invested in the redesign of our D2C
website and installation of a new content management system. We have already
seen an increase in customer engagement on the website and higher customer
conversion rates. The remaining 2% of distribution cost increase is
attributable to underlying cost growth which reflects inflationary pressures.
Technology costs increased by 17% to £55.1 million (FY24: £47.1 million). Of
this increase, 15% was driven by investment in change delivery to enable
accelerated platform enhancements, including the launch of AJ Bell Touch in
the year, as well as implementing further automation in our advised
propositions. Although these initiatives have elevated short-term costs, they
form part of our strategy to ensure we are scalable in the long term. The
remaining 2% of technology cost increases relate to underlying cost growth as
we continued to strengthen our operational resiliency and cyber defences to
safeguard the integrity of our systems and customer data. This was offset by
efficiency savings delivered in this area during the year.
Underlying operational and support costs increased by 18% to £93.0 million
(FY24: £79.0 million). Performance-related variable costs account for 7% of
the increase, reflecting higher transaction costs and performance-related
staff pay; a direct consequence of the increased customer dealing activity and
strong financial performance of the business respectively. Of the increase,
10% relates to underlying cost growth, driven by headcount growth and salary
inflation, as well as additional external cost pressures from rising
regulatory levies and National Insurance contributions. The remaining increase
of 1% relates to business investment, as we commenced the refurbishment of our
head office in Manchester to increase capacity and facilitate our future
growth.
Exceptional operational and support costs represent one-off, non-recurring
expenditure in the year. The £1.1 million of exceptional operational and
support costs incurred in FY25 predominantly relate to transactional costs
associated with the disposal of the Platinum SIPP and SSAS business. Costs
incurred in the prior year relate to a provision recognised in respect of
potential customer redress resulting from historical SIPP and operator
due-diligence issues, and does not relate to ongoing business operations
(FY24: £6.2 million). Further information has been disclosed in note 22 to
the consolidated financial statements.
Our capital allocation framework prioritises targeted organic investment. In
FY26 we are making significant additional investments in our brand, marketing
capabilities and propositions to drive organic growth. We will continue to
focus on efficiency and cost management to drive operational gearing to
effectively manage underlying cost growth.
Profitability and earnings
Investment income of £6.8 million (FY24: £6.9 million) reflects a reduction
in interest rates during the year, offset by higher average corporate cash
balances in the year.
PBT increased by 22% to £137.8 million (FY24: £113.3 million) whilst PBT
margin increased to 43.4% (FY24: 42.0%). The improvement in PBT margin
demonstrates the benefits of our scalable business model, with higher revenue
margins alongside efficiency gains slightly tempered by the accelerated
investment made in strategic initiatives.
The standard rate of UK corporation tax remained at 25.0% throughout the year.
Our effective rate of tax for the period was below this at 23.7% (FY24:
25.6%), reflecting the recognition of deferred tax assets from pre-trading
expenditure in relation to AJ Bell Touch.
Basic earnings per share rose by 26% to 25.68 pence (FY24: 20.46 pence) as a
result of an increase in PBT and the impact of deferred tax assets recognised
in the year. Diluted earnings per share (DEPS), which accounts for the
dilutive impact of outstanding share awards, also increased by 26% to 25.56
pence (FY24: 20.34 pence).
Financial position
The Group's financial position remains strong, with net assets totalling
£217.5 million (FY24: £204.0 million) as at 30 September 2025 and a return
on assets 3 (#_ftn3) of 48% (FY24: 41%).
Financial resources and regulatory capital position
Our financial resources are continually kept under review, incorporating
comprehensive stress and scenario testing which is formally reviewed and
agreed at least annually.
Year ended 30 September 2025 Year ended 30 September 2024
£000 £000
Total shareholder funds 217,452 203,990
Less: unregulated business capital (3,342) (4,150)
Regulatory group shareholder funds 214,110 199,840
Less: foreseeable dividends (39,348) (34,019)
Less: foreseeable share buyback¹ (60,606) (30,000)
Less: non-qualifying assets (16,449) (12,994)
Total qualifying capital resources 97,707 122,827
Less: capital requirement (62,207) (59,577)
Surplus capital 35,500 63,250
% of capital resource requirement held 157% 206%
(1) Foreseeable share buyback includes £10.6 million relating to the
programme announced on 22 May 2025, in addition to the new £50m programme
which will run throughout FY26.
The reduction in surplus capital over our regulatory capital requirement to
157% (FY24: 206%) reflects the increase in capital distributions to our
shareholders.
We operate a highly cash-generative business that ensures profits are quickly
converted into cash. We generated net cash from operating activities of £86.5
million (FY24: £96.3 million) and held a significant surplus over our basic
liquid asset requirement during the period, with our year end balance sheet
including cash balances of £188.2 million (FY24: £196.7 million).
Following the year end, in November 2025 the sale of our Platinum SIPP and
SSAS business to InvestAcc Group Limited completed with total consideration of
up to £25 million. Initial consideration of £18.5 million has been settled;
made up of £17.5 million in cash and £1.0 million in new InvestAcc shares.
Deferred consideration of up to £6.5 million in cash will be payable in the
first half of 2026, subject to certain conditions. The disposal proceeds will
further strengthen our capital position, and will be flowed through the
Group's capital allocation framework.
Shareholder capital returns
During the year, we refined our capital allocation framework to ensure our
capital resources are utilised effectively to deliver long-term value for
shareholders. The framework now includes a minimum dividend payout ratio of
50%, complementing our ongoing commitment to progressive ordinary dividend
growth. Under this framework, the Board will continue to assess the
appropriateness and mechanism for returning surplus capital to shareholders on
an annual basis.
For FY25, in line with our capital allocation framework, the Board has
recommended a final dividend of 9.75 pence per share (FY24: 8.25 pence per
share), resulting in a total ordinary dividend of 14.25 pence for the year
(FY24: 12.50 pence). This equates to a pay-out of 55% of statutory profit
after tax and marks over two decades of progressive ordinary dividend growth.
Following continued strong financial results in the year and given the surplus
capital held in excess of regulatory requirements, we are pleased to announce
the Board has approved another share buyback programme, returning up to £50
million to shareholders throughout FY26.
Peter Birch
Chief Financial Officer
3 December 2025
Principal risks and uncertainties
The Board is committed to a continual process of improvement and embedment of
the GRMF.
This ensures that the business identifies both existing and emerging risks and
continues to develop appropriate mitigation strategies through an effective
internal control environment.
The Board believes that there are a number of potential risks to the Group
that could hinder the successful implementation of its strategy. These risks
may arise from internal and external events, acts and omissions. The Board is
proactive in identifying, assessing and managing all risks facing the
business, including the likelihood of each risk materialising in the short or
longer term.
The principal risks and uncertainties facing the Group are outlined below,
together with their potential impacts and mitigating actions. Given the
ever-evolving threat landscape, the Group recognises the need to remain
vigilant and proactive, continually adapting and investing in its control
environment. Accordingly, the residual risk associated with most of the
Group's principal risks and uncertainties has remained stable. However, the
residual risk related to third-party management has decreased, owing to
ongoing enhancements. This reflects the introduction of an additional
operational banking counterparty, which increases contingency options in the
event of a third-party outage.
Residual risk direction
↑ Increased → Stable ↓ Decreased
1. Strategic risk
Strategic positioning risk (Trend: →) · Loss of competitive advantage, such that AUA and customer number The Group regularly reviews its products against competitors, in relation to
targets are adversely impacted. This would have a negative impact on pricing,
Strategic positioning risk refers to the potential downside profitability.
functionality and service. Emerging threats are reviewed by ExCo and the
when our strategic decisions regarding market positioning, · Reputational damage as a result of underperformance and / or Board,
regulatory scrutiny.
competition, product offerings, or customer focus fail including through the Group's Purpose, Strategy and Planning (PS&P)
process.
to align with changing market dynamics, regulatory
The Group remains closely aligned with trade and industry bodies, and other
requirements, or stakeholder expectations including
policy makers across our market. The use of ongoing competitor analysis
environmental considerations. This risk stems from
provides insight and an opportunity to adapt strategic direction in response
making incorrect or untimely decisions that can affect
to market conditions.
our competitive advantage.
Strategic execution risk (Trend: →) · Loss of competitive advantage, such that AUA and customer number The Group maintains a robust governance structure, which includes a dedicated
targets are adversely impacted. This would have a negative impact on Proposition Committee and an Operational Committee.
profitability.
These committees derive authority from the ExCo and provide oversight of our
The risk that AJ Bell's strategic objectives are not met due to a failure in · Reputational damage as a result of underperformance and / or products and services, operations and people to ensure the execution of our
implementation, alignment or resource management. This includes risk related regulatory scrutiny. strategy is aligned with the Group's strategic objectives.
to poor planning, misaligned incentives, inadequate resourcing or
inadequate control and oversight. Culture forms a
critical part of this risk, where AJ Bell's underlying values, beliefs and
behaviours are misaligned with the strategic goals impacting delivery.
Investment risk · Outflows or loss of assets under management as a result of poor The Group maintains robust investment governance arrangements in relation to
or unexpected performance, which would reduce investment management revenues. the investment activities associated with AJ Bell Asset Management's products
(Trend: →)
and services. The performance of these products and services is monitored on
· Potential customer detriment, such as the loss of investment an ongoing basis for alignment with customer expectations and investment
value or inaccessibility of assets due to poor liquidity. mandates, including through dedicated forums and by the second line of defence
Risk Team. A dedicated Investment Committee which is a sub-committee of ExCo,
The risk of underperformance on AJ Bell Investment (AJBI) against key peers · Reputational damage resulting from inadequate oversight or includes two independent committee members and provides oversight of
leading to customer outflows and asset growth lower than strategic targets. governance arrangements. investment management activities.
2. Financial risk
Capital risk · Inability to cover unexpected losses. The Group adopts a cautious and controlled approach to managing its capital
risk.
(Trend: →) · Additional regulatory scrutiny and potential increased regulatory
capital resource requirements. The Group conducts an Internal Capital and Risk Assessment (ICARA) process
aligned with the GRMF to identify, monitor and mitigate potential harms.
The risk that the Group does not maintain sufficient capital resources to Where harms can not be mitigated, the Group holds capital to cover potential
cover unexpected losses. unexpected losses (the capital resource requirement). The Group's capital risk
appetite is to maintain its capital resources >115% of the Group's capital
resource requirement.
Credit risk (Trend: →) · Financial loss. The Group's credit risk extends principally to its financial assets, cash
balances held with banks and trade and other receivables. The Group carries
The risk of potential failure of clients, market counterparties or banks used · Potential customer detriment. out initial and ongoing due diligence on the market counterparties and banks
by the Group to fulfil contractual obligations.
that it uses, and regularly monitors the level of exposure.
The Group continues to diversify across a range of approved banking
counterparties, reducing the concentration of credit risk as exposure is
spread over a larger number of counterparties. The banks currently used by the
Group are detailed in note 25 to the consolidated financial statements.
With regard to trade receivables, the Group has implemented procedures that
require appropriate credit or alternative checks on potential customers before
business is undertaken. This has minimised credit risk in this area.
The Group will maintain its existing strategy of diversification to ensure
acceptable exposure across a wide range of well-capitalised banks with
appropriate credit ratings.
The Group will continue to regularly monitor its level of exposure and to
assess the financial strength of its banking counterparties.
Liquidity risk (Trend: →) · Reputational damage. The Group has robust systems and controls and monitors all legal entities to
ensure they have sufficient funds to meet their liabilities as they fall due.
· Potential customer detriment.
The Group continues to monitor trade settlement on both an intra-day and daily
· Financial loss. basis, and we continue to assess opportunities to strengthen our internal
control environment.
The risk that the Group does not have available readily realisable financial · Inability to meet obligations as they fall due.
resources to enable it to meet its obligations as they fall due, or can only The Group continues to be a highly cash-generative business and maintains
secure such resources at excessive cost. sufficient cash and standby banking facilities to fund its foreseeable trading
requirements.
3. Operational risk
Change risk (Trend: →) · Operational resilience disruptions resulting from crystallisation All operational and regulatory change is prioritised, captured, and monitored
of change risk may lead to financial or regulatory penalties, customer impact through the Operational sub-committee of ExCo.
The risk of potential negative consequences and uncertainties associated with and reputational damage.
introducing modifications, alterations, or adjustments to established
Technology change is prioritised, captured, and monitored within Technology
processes or systems. · Change can increase costs if not delivered within budget or Services and through associated Committees.
introduce complexity to end users due to a lack of compatibility with existing
systems. Product change is managed within the Product areas and overseen by the
Proposition Committee.
· Reduced quality because of a change can lead to customer
dissatisfaction, rework, and additional costs.
· An inability to deliver change can result in reputational damage
to the Group, making it difficult to attract customers and talent.
Data risk (Trend: →) · A data breach could adversely impact individuals' data rights and The Group maintains a data governance framework, alongside data protection
freedoms and could result in fines / censure from regulators, such as the ICO policies and procedures, and security controls to protect data such as
Data risk is defined as the potential threats and vulnerabilities that can and FCA. encryption, access controls and monitoring.
compromise the confidentiality, integrity, availability, and compliance of
sensitive or valuable data within the Group and its third-party suppliers. · A data breach could result in financial loss due to the cost of The Group educates employees about data privacy, security and importance of
This risk encompasses the possibility of unauthorised access, loss, theft, investigating the breach, notifying impacted individuals, and implementing protecting sensitive data.
alteration, or exposure of data. remediation measures.
The Group conducts regular data audits to identify and address potential
· The Group could suffer damage to its reputation, eroding trust security risks.
and making it difficult to attract and retain customers, employees, partners,
and investors. The Group's Data Protection Officer (DPO) / Chief Risk Officer (CRO) provides
an assessment of the adequacy of the Group's data protection framework as part
of the annual DPO report.
Financial control environment risk (Trend: →) · Reputational damage with regulators, leading to increased capital The Group maintains strong financial policies and procedures with clear lines
requirements. of authority. The Finance Team ensures these policies are adhered to.
The risk of error in financial reporting processes resulting in either
misstatement, late submission or non-compliance with internal, statutory, · Loss or misappropriation of company assets. Access to the finance general ledger system is managed centrally with
regulatory or tax reporting obligations.
pre-defined rights and a regular review of segregation of duties and
conflicts.
The Board maintains oversight of financial reporting prior to external
issuance.
Information security risk (Trend: →) · Information security breaches could adversely impact individuals' The Group continually reviews and evolves its cyber security position to
data rights and freedoms, and could result in fines / censure from regulators, ensure that it protects the confidentiality, integrity and availability of its
The risk of potential threats and vulnerabilities that can compromise the such as the ICO and FCA. network and the data that it holds.
confidentiality, integrity, or availability of sensitive or valuable data
within the Group and its third-party suppliers. This risk encompasses the · Failure to maintain or quickly recover operations could lead to A defence in-depth methodology is in place aligned to the National Institute
possibility of unauthorised access, loss, theft, alteration, or exposure of intolerable harm to customers and the Group. of Standards and Technology (NIST) Cybersecurity Framework. Risks are
data, and non-compliance with applicable regulatory frameworks.
proactively identified through the RCSA process and multi-stream threat
· The Group could suffer damage to its reputation, eroding trust intelligence. This is further supported by a full training programme.
and making it difficult to attract and retain customers, employees, partners,
and investors. A layered approach is taken for preventative controls, including next
generation anti-malware and strong perimeter controls, to reduce the
likelihood of an event occurring. Multiple layers of detective controls are
also in place backed by a 24/7 Security Operations Centre.
Should an incident occur a robust incident response process is in place,
supported by appropriate retainers where necessary. Finally, should the worst
happen, multiple backup solutions have been implemented in order to recover
systems to a known good state.
Operational resilience risk (Trend: →) · Failure to maintain or quickly recover operations could lead to The Group has developed a comprehensive operational resilience framework,
intolerable harm to customers and the Group. under the direction of the Operational sub-committee of ExCo. The RCC and
The risk that the Group does not have an adequate operational resilience
Board also provide oversight.
framework to prevent, adapt, respond to, recover and learn from operational · Operational resilience disruptions may lead to financial or
disruptions. regulatory penalties, and reputational damage. An annual operational resilience self-assessment document is reviewed by the
Board and RCC. The Group's Risk Team provide a second line of defence review
of the operational resilience self-assessment.
During FY24, a successful Group-wide disaster recovery exercise was carried
out, allowing the business to operate for a week on a cloud-based disaster
recovery platform. A further successful interim disaster recovery exercise was
completed in FY25, testing failover of website and app capability, including
making payments for real customer requests.
Process risk (Trend: →) · A decline in the quality of work will have a financial impact The Group focuses on increasing the effectiveness of its operational
through increased operational losses. procedures and, through its business improvement function, aims to improve and
The risk that, due to unexpectedly high volumes, the Group is unable to
automate more of its processes. This reduces the need for manual intervention
process work within agreed service levels and / or to an acceptable quality · Unexpectedly high volumes coupled with staff recruitment and and the potential for errors.
for a sustained period. retention issues could lead to poor customer outcomes and reputational damage.
Technology risk (Trend: →) · The reliance on evolving technology remains crucial to the The Group continues to implement a programme of increasing annual investment
Group's effort to develop its services and enhance products. Prolonged in the technology platform. This is informed by recommendations that result
The risk that the design, implementation and management of applications, underinvestment in technology will affect our ability to serve our customers from regular architectural reviews of applications and of the underpinning
infrastructure and services fail to meet current and future business and meet their needs. infrastructure and services.
requirements.
· Failing to deliver and manage a fit-for-purpose technology Daily monitoring routines provide oversight of performance and capacity which
platform could have an adverse impact on customer outcomes and affect our supports our operational resilience risk management activities.
ability to attract new customers.
Our rolling programme of both business continuity planning and testing,
· Technology failures may lead to financial or regulatory
penalties, and reputational damage. and single point of failure management, maintains our focus on the resilience
of key systems in the event of an interruption to service.
Third-party management risk (Trend: ↓) · Loss of service from a third-party provider could have a negative To mitigate the risk posed by third-party suppliers, the Group conducts
impact on customer outcomes due to website unavailability, delays in receiving onboarding due diligence and monitors performance against documented service
The risk that a third-party provider materially fails to deliver the and / or processing customer transactions or interruptions to settlement and standards to ensure their continued commitment to service, financial stability
contracted products and services that can create the potential for business reconciliation processes. and viability. Performance metrics are discussed monthly with documented
disruption, financial loss or reputational damage. Outsourcing risk is a
actions for any identified improvements.
subset of third-party risk and occurs when business functions or processes are · Financial impact through increased operational losses.
undertaken by external providers.
Where relevant and appropriate, annual financial due diligence on critical
· Regulatory fine and/or censure. suppliers and on-site audits are also undertaken.
People risk (Trend: →) · Difficulties in recruiting the right, culturally aligned, people The Group has strong recruitment and selection processes to (i) attract and
to work for the Group. (ii) hire the best people possible to join the Group.
· Existing employees who are not motivated, do not perform well, The AJ Bell Way and guiding principles are embedded into our culture through
The risk that the Group fails to attract, retain, develop, and engage and may impact the quality and effectiveness of the services provided to the policies, procedures, and training.
employees to help the Group deliver its strategic objectives and deliver Group's customers.
positive customer outcomes.
The Group undertakes a staff engagement survey at least annually and uses this
· Talented employees who are not appropriately developed and / or feedback to address any areas for improvement to ensure staff engagement
have limited opportunities to progress are likely to leave the Group. remains high.
· Resource and skills shortfalls may impact (i) the Group's ability The Group conducts regular reviews of its employee remuneration packages to
to deliver on its strategic objectives and (ii) our quality and service, which ensure they are competitive.
could lead to poor service / consumer outcomes and reputational damage.
The Group operates talent development programmes for management and leadership
roles.
4. Compliance and conduct risk
Conduct (consumer outcomes) risk (Trend: →) · Poor conduct could have an adverse impact on customer outcomes. Delivering good customer outcomes is core to our purpose, business model,
strategy and guiding principles. This drives the culture and objectives of the
Conduct risk refers to the potential for behaviours, actions, or business · Reputational damage resulting from poor levels of customer business and ensures customers remain at the heart of everything we do.
practices within a firm to harm customers, the integrity of the market, or the service.
firm itself. This incorporates the possibility that customers experience
The Group maintains a series of controls to maintain alignment with the
negative outcomes from a firm's products, services, or business practices. · The Group may be adversely affected, including regulatory censure requirements of the Consumer Duty and deliver good outcomes. These include
This can occur due to poor communication, or inadequate service, particularly or enforcement. training and education, product governance, ongoing monitoring arrangements
if vulnerable customers are not sufficiently protected. and assurance to the ExCo and Board on the delivery of good customer outcomes.
The Group regularly reviews controls arrangements to ensure alignment with the
evolving business and regulatory landscape.
Financial crime risk (Trend: →) · The Group may be adversely affected, including regulatory Extensive controls are in place to minimise the risk of financial crime.
censure, enforcement action and potential crime liability, if we fail to
The risk of failure to protect the Group and its customers from all aspects of mitigate the risk of being used to facilitate any form of financial crime, Policies and procedures include: mandatory financial crime training in
fraud and financial crime, including money laundering, terror financing, including but not limited to money laundering, fraud, market abuse or sanction anti-money laundering and counter-terrorist financing, fraud, market abuse and
proliferation financing, sanction restrictions, market abuse, fraud, breaches. the Criminal Finances Act 2017 to aid the detection, prevention and reporting
cyber-crime and the facilitation of tax evasion.
of financial crime. The Group has an extensive recruitment process in place to
· Potential customer detriment as customers are at risk of losing screen potential employees.
funds or personal data, which may expose them to further harm through misuse
of their accounts or identity via other organisations. The Group actively maintains defences against a broad range of likely attacks
by global actors, bringing together tools from well-known providers, external
· Fraudulent activity leading to identity theft, unauthorised consultancy and internal expertise to create multiple layers of defence. The
access, fraud and / or loss of customer holdings due to account takeover or latter includes intelligence shared through participation in regulatory,
misuse of compromised credentials. industry and national cyber security networks.
· The Group could suffer damage to its reputation, eroding trust
and making it difficult to attract and retain customers, employees, partners,
and investors.
Regulatory and compliance risk (Trend: →) · Regulatory censure and / or fines, including fines from the FCA The Group maintains a strong compliance culture geared towards positive
and Information Commissioner's Office (ICO). customer outcomes and regulatory compliance.
The risk that the Group fails to comply with regulatory and legal standards.
· Related negative publicity could reduce customer confidence and The Group performs regular horizon scanning to ensure all legislative and
affect the Group's ability to generate positive net inflows. regulatory change is detected and highlighted to the Group for consideration.
· Poor conduct could have an adverse impact on customer outcomes. The Group maintains an open dialogue with the FCA and actively engages with
them on regulatory change.
The Compliance function is responsible for ensuring all standards of the FCA
regulatory system are being met by the Group. This is achieved by implementing
policies and procedures across the business, maintaining awareness and
maintaining and operating an effective control environment. Compliance
performs a rolling programme of risk-prioritised reviews to ensure compliance
standards have been embedded into the business.
Viability statement
In accordance with provision 31 of the UK Corporate Governance Code 2018, the
Board has assessed the viability of the Group, considering a four-year period
to September 2029. The Board considers a four-year horizon to be an
appropriate period to assess the Group's strategy and its capital
requirements, considering the investment needs of the business and the
potential risks that could impact the Group's ability to meet its strategic
objectives.
This assessment has been made considering the Group's financial position and
regulatory capital and liquidity requirements in the context of its business
model, strategy and four-year financial forecasts and in consideration of the
principal risks and uncertainties, as detailed in the Strategic report. The
principal risks and uncertainties are those that may adversely impact the
Group based on its business model and strategy and are derived from both the
Group's business activities and the wider macroeconomic environment in which
the Group operates but does not control.
As an FCA-regulated entity, as part of its Internal Capital and Risk
Assessment (ICARA) the Group is required to use stress-testing of the business
model and strategy to identify whether it holds sufficient own funds and
liquid assets. Forward-looking hypothetical stress testing scenarios have been
determined by considering potential macroeconomic and idiosyncratic events
that would have a significant adverse impact on the Group's ability to
generate profits, and therefore maintain the existing levels of own funds and
liquid assets, over the business planning period.
The Board-approved four-year financial forecast assumes the business continues
to grow customer numbers and AUA through investment in our brand, product
propositions, technology and people. The financial forecasts assume that the
Bank of England base interest rate will continue to gradually fall throughout
the forecast period, in line with market projections. There are no significant
market movements in underlying asset values based on the position at the point
the projections were approved by the Board.
The Board has considered the potential impact of three stress test scenarios,
which cumulatively represent a severe, remote but plausible scenario:
1) Macroeconomic (Market risk) - a significant reduction in equity market
values, based on the 2008-09 global financial crisis. Asset values fall by 40%
in year one, recovering to 20% below the level they were prior to the fall in
year two, and remain flat in years three and four.
2) Macroeconomic (Market risk) - Bank of England base interest rate
reduced to 0.50% over a 15-month period, leading to a lower interest rate
retained on customer cash balances.
3) Idiosyncratic (Technology risk, Third-party management risk) -
prolonged IT issues with key operating software suppliers cause significant
damage to AJ Bell's service and reputation, which results in a reduction in
customers. Following year one the Group incurs development and license costs
to upgrade or replace key components of the platform software, with service
levels and net inflows returning to normal in year three.
The Board has identified a number of potential management actions that could
be taken in the event the modelled scenarios crystallise. The action selected
would be dependent upon the nature of the scenario.
The results have confirmed that the Group would be able to withstand the
adverse financial impact of these three scenarios occurring simultaneously
over the four-year assessment period. This assumes that dividends are paid in
line with the recommendation made in the 30 September 2025 annual report and
with the Group capital allocation framework on a forward-looking basis. During
the period, the Group continues to retain surplus financial resources over and
above its regulatory capital and liquidity requirements, with or without any
management remediation actions.
The Group's strategy and four-year financial forecasts were approved by the
Board in September 2025. The Directors confirm that they have a reasonable
expectation that the Group will be able to continue in operation and meet its
liabilities as they fall due over the four-year period ending September 2029.
The Strategic report was approved by the Board of Directors and signed on its
behalf by:
Michael Summersgill
Chief Executive Officer
3 December 2025
Statement of Directors' responsibilities
The Directors are responsible for preparing the Annual Report and Financial
Statements in accordance with UK-adopted international accounting standards
and applicable law and regulations.
Company law requires the Directors to prepare Group and Parent Company
financial statements for each financial year. Under that law the Directors are
required to prepare the Group financial statements in accordance with
UK-adopted international accounting standards and have elected to prepare the
Parent Company financial statements in accordance with UK accounting standards
and applicable law including FRS 101 Reduced Disclosure Framework.
Under company law the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Group and Parent Company and of the profit or loss for the
Group for that period. The Directors are also required to prepare the Group
financial statements in accordance with international financial reporting
standards as adopted by the UK.
In preparing these financial statements, the Directors are required to:
· select suitable accounting policies and then apply them
consistently;
· make judgements and accounting estimates that are reasonable and
prudent;
· for the Group financial statements, state whether they have been
prepared in accordance with UK-adopted international accounting standards,
subject to any material departures disclosed and explained in the financial
statements;
· for the Parent Company financial statements, state whether
applicable UK accounting standards have been followed, subject to any material
departures disclosed and explained in the financial statements;
· prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group or Parent Company will
continue in business; and
· prepare a Directors' report, a Strategic report and Directors'
Remuneration report which comply with the requirements of the Companies Act
2006.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Parent Company's transactions and disclose
with reasonable accuracy at any time the financial position of the Parent
Company and enable them to ensure that the financial statements comply with
the Companies Act 2006.
They are also responsible for safeguarding the assets of the Group and hence
for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
The Directors are responsible for ensuring the Annual Report and Financial
Statements are made available on a website. Financial statements are published
on the Company's website in accordance with legislation in the United Kingdom
governing the preparation and dissemination of financial statements, which may
vary from legislation in other jurisdictions. The maintenance and integrity of
the Company's website is the responsibility of the Directors. The Directors'
responsibility also extends to the ongoing integrity of the financial
statements contained therein.
Each of the Directors, whose names and responsibilities are listed in the
Corporate Governance report, confirms that, to the best of their knowledge:
· The financial statements have been prepared in accordance with
the applicable set of accounting standards and give a true and fair view of
the assets, liabilities, financial position and profit and loss of the Group.
· The Annual Report includes a fair review of the development and
performance of the business and the financial position of the Group and Parent
Company, together with a description of the principal risks and uncertainties
that they face.
We consider that the Annual Report and Financial Statements, taken as a whole,
are fair, balanced and understandable and provide the information necessary
for shareholders to assess the Group's position and performance, business
model and strategy.
Approved by the Board on 3 December 2025 and signed on its behalf by:
Kina Sinclair
Company Secretary
4 Exchange Quay
Salford Quays
Manchester
M5 3EE
Consolidated income statement
for the year ended 30 September 2025
2025 2024
Notes £000 £000
Revenue 5 317,847 269,435
Administrative expenses (185,890) (162,157)
Operating profit 6 131,957 107,278
Investment income 8 6,800 6,909
Finance costs 9 (931) (904)
Profit before tax 137,826 113,283
Tax expense 10 (32,705) (28,988)
Profit for the financial year attributable to:
Equity holders of the parent company 105,121 84,295
Earnings per share
Basic (pence) 12 25.68 20.46
Diluted (pence) 12 25.56 20.34
All revenue, profit and earnings are in respect of continuing operations.
There were no other components of recognised income or expense in either
period and, consequently, no statement of other comprehensive income has been
presented.
Consolidated statement of financial position
as at 30 September 2025
2025 2024
Notes £000 £000
Assets
Non-current assets
Goodwill 13 6,991 6,991
Other intangible assets 14 7,994 7,540
Property, plant and equipment 15 3,722 3,777
Right-of-use assets 16 10,557 11,762
Deferred tax asset 18 5,450 1,546
34,714 31,616
Current assets
Trade and other receivables 19 68,450 59,545
Current tax receivable 10,090 1,069
Cash and cash equivalents 20 188,192 196,651
266,732 257,265
Assets held for sale 29 1,634 -
Total assets 303,080 288,881
Liabilities
Current liabilities
Trade and other payables 21 (64,521) (61,921)
Lease liabilities 16 (2,216) (1,453)
Provisions 22 (6,410) (7,421)
(73,147) (70,795)
Non-current liabilities
Lease liabilities 16 (9,842) (11,724)
Provisions 22 (2,639) (2,372)
(12,481) (14,096)
Total liabilities (85,628) (84,891)
Net assets 217,452 203,990
Equity
Share capital 23 50 52
Share premium 9,138 8,963
Own shares (926) (2,049)
Retained earnings 209,190 197,024
Total equity 217,452 203,990
The financial statements were approved by the Board of Directors and
authorised for issue on 3 December 2025 and signed on its behalf by:
Peter Birch
Chief Financial Officer
AJ Bell plc
Company registered number: 04503206
Consolidated statement of changes in equity
for the year ended 30 September 2025
Share Share Retained Own Total
capital premium earnings shares equity
£000 £000 £000 £000 £000
Balance at 1 October 2024 52 8,963 197,024 (2,049) 203,990
Total comprehensive income for the year:
Profit for the year - - 105,121 - 105,121
Transactions with owners, recorded directly in equity:
Issue of shares (note 23) - 175 - - 175
Dividends paid (note 11) - - (52,288) - (52,288)
Equity settled share-based payment transactions (note 24) - - 4,174 - 4,174
Deferred tax effect of share-based payment transactions (note 18) - - 714 - 714
Tax relief on exercise of share options (note 10) - - 178 - 178
Share transfer to employees (note 23) - - (1,123) 1,123 -
Share buyback (note 23) (2) - (44,610) - (44,612)
Total transactions with owners (2) 175 (92,955) 1,123 (91,659)
Balance at 30 September 2025 50 9,138 209,190 (926) 217,452
Share Share Retained Own Total
capital premium earnings shares equity
£000 £000 £000 £000 £000
Balance at 1 October 2023 52 8,963 159,399 (2,377) 166,037
Total comprehensive income for the year:
Profit for the year - - 84,295 - 84,295
Transactions with owners, recorded directly in equity:
Issue of shares - - - - -
Dividends paid (note 11) - - (47,416) - (47,416)
Equity settled share-based payment transactions (note 24) - - 567 - 567
Deferred tax effect of share-based payment transactions (note 18) - - 498 - 498
Tax relief on exercise of share options (note 10) - - 9 - 9
Share transfer relating to EIP (note 23) - - (328) 328 -
Total transactions with owners - - (46,670) 328 (46,342)
Balance at 30 September 2024 52 8,963 197,024 (2,049) 203,990
Consolidated statement of cash flows
for the year ended 30 September 2025
2025 2024
Notes £000 £000
Cash flows from operating activities
Profit for the financial year 105,121 84,295
Adjustments for:
Investment income 8 (6,800) (6,909)
Finance costs 9 931 904
Income tax expense 10 32,705 28,988
Depreciation, amortisation and impairment 6 4,080 3,432
Share-based payment expense 24 4,100 1,502
(Decrease) / increase in provisions 22 (1,011) 6,061
Loss on disposal of property, plant and equipment 37 340
Increase in trade and other receivables 19,29 (10,539) (1,044)
Increase in trade and other payables 21 2,600 9,484
Cash generated from operations 131,224 127,053
Income tax paid (44,739) (30,763)
Net cash flows from operating activities 86,485 96,290
Cash flows from investing activities
Purchase of other intangible assets 14 (1,196) (1,473)
Purchase of property, plant and equipment 15 (1,240) (1,476)
Interest received 8 6,800 6,909
Net cash flows generated from/(used) in investing activities 4,364 3,960
Cash flows from financing activities
Payments of principal in relation to lease liabilities 16 (1,654) (1,583)
Payment of interest on lease liabilities 16 (931) (904)
Proceeds from issue of share capital 23 175 -
Payments for share buyback 23 (44,610) -
Dividends paid 11 (52,288) (47,416)
Net cash flows used in financing activities (99,308) (49,903)
Net (decrease) / increase in cash and cash equivalents (8,459) 50,347
Cash and cash equivalents at beginning of year 20 196,651 146,304
Total cash and cash equivalents at end of year 20 188,192 196,651
Notes to the consolidated financial statements
for the year ended 30 September 2024
1 General information
AJ Bell plc (the 'Company') is the Parent Company of the AJ Bell group of
companies (together the 'Group'). The Group provides investment
administration, dealing and custody services. The nature of the Group's
operations and its principal activities are set out in the Strategic report
and the Directors' report.
The Company is a public limited company which is listed on the Main Market of
the London Stock Exchange and incorporated and domiciled in the United
Kingdom. The Company's number is 04503206 and the registered office is 4
Exchange Quay, Salford Quays, Manchester, M5 3EE. A list of investments in
subsidiaries, including the name, country of incorporation, registered office,
and proportion of ownership is given in note 6 of the Company's separate
financial statements.
The consolidated financial statements were approved by the Board on 3 December
2025.
2 Material accounting policies
Basis of accounting
The consolidated financial statements of AJ Bell plc have been prepared in
accordance with UK-adopted international accounting standards and the
requirements of the Companies Act 2006 as applicable to companies reporting
under those standards.
The financial statements are prepared on the historical cost basis and
prepared on a going concern basis. They are presented in sterling, which is
the currency of the primary economic environment in which the Group operates,
rounded to the nearest thousand.
The accounting policies have been applied consistently to all periods
presented in these financial statements and by all Group entities, unless
otherwise stated.
Changes to International Reporting Standards
Interpretations and standards which became effective during the year:
The following amendments and interpretations became effective for accounting
periods starting on
or after 1 January 2024. Their adoption has not had any significant impact on
the Group.
Effective from
IAS 1 Non-current Liabilities with Covenants (Amendments) 1 January 2024
IAS 1 Classification of Liabilities as Current or Non-current (Amendments) 1 January 2024
IAS 7 / IFRS 7 Supplier Finance Arrangements (Amendments) 1 January 2024
IFRS 16 Lease Liability in a Sale and Leaseback (Amendments) 1 January 2024
Interpretations and standards in issue but not yet effective:
The Group has not early adopted any other standard, interpretation or
amendment that has been
issued but is not yet effective.
IFRS 18 Presentation and Disclosures in Financial Statements was issued in
April 2024 and is effective from periods beginning on or after 1 January 2027.
Early application is permitted and comparatives will require restatement.
The standard will replace IAS 1 Presentation of Financial Statements and
although it will not change how items are recognised and measured, the
standard brings a focus on the income statement and reporting of financial
performance. Income and expenses are classified into three new defined
categories, 'operating', 'investing' and 'financing', and two new subtotals,
'operating profit and loss' and 'profit or loss before financing and income
tax'. The standard introduces new disclosures of management defined
performance measures and enhanced general requirements on aggregation and
disaggregation.
The impact of the standard on the Group is currently being assessed and it is
not yet practicable to quantify the effect of IFRS 18 on these consolidated
financial statements, however there is no impact on presentation for the Group
in the current year given the effective date. The standard is applicable to
the Group from FY28.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries) made up
to 30 September each year. The Group controls an entity when it is exposed to,
or it has rights to variable returns from its involvement with the entity and
has the ability to affect those returns through its power over the entity. The
Group reassesses whether it controls an entity if facts and circumstances
indicate there are changes to one or more elements of control. The results of
a subsidiary undertaking are included in the consolidated financial statements
from the date the control commences until the date that control ceases.
The acquisition method of accounting is used to account for the acquisition of
subsidiaries. Acquisition-related costs are expensed as incurred in the income
statement, except if related to the issue of debt or equity securities.
Identifiable assets acquired and liabilities and contingent liabilities
assumed in the business combination are measured initially at their fair
values at the acquisition date. The excess of the cost of acquisition over the
fair value of the Group's share of the identifiable net assets acquired is
recorded as goodwill. If this is less than the fair value of the Group's share
of the identifiable net assets of the subsidiary acquired, the difference is
taken immediately to the income statement.
All intercompany transactions, balances, income, and expenses are eliminated
on consolidation.
2.1 Going concern
The Group's business activities, together with its financial position and the
factors likely to affect its future development and performance are set out in
the Strategic report and the Directors' report. Note 25 includes the Group's
policies and processes for managing exposure to credit and liquidity risk.
The Group's forecasts and objectives, considering a number of potential
changes in trading conditions, show that the Group should be able to operate
at adequate levels of both liquidity and capital for at least 12 months from
the date of signing this report. The Directors have performed a number of
stress tests, covering a significant reduction in equity market values, a fall
in the Bank of England base interest rate leading to a lower interest rate
retained on customer cash balances, and a further Group-specific idiosyncratic
stress relating to a scenario whereby prolonged IT issues cause a reduction in
customers. Further detail of the forecasts and stress test scenarios are set
out in the Viability statement. These scenarios provide assurance that the
Group has sufficient capital and liquidity to operate under stressed
conditions.
Consequently, after making reasonable enquiries, the Directors are satisfied
that the Group has sufficient financial resources to continue in business for
at least 12 months from the date of signing the report and therefore have
continued to adopt the going concern basis in preparing the financial
statements.
2.2 Segmental reporting
The Group determines and presents operating segments based on the information
that is provided internally to the Board, which is the Group's Chief Operating
Decision Maker (CODM). In assessing the Group's operating segments, the
Directors have considered the nature of the services provided, product
offerings, customer bases, operating model and distribution channels amongst
other factors. The Directors concluded there is a single segment as it
operates with a single operating model; operations, support and technology
costs are managed and reported centrally to the CODM. A description of the
services provided is given within note 4.
2.3 Revenue recognition
Revenue represents fees receivable from investment administration and dealing
and custody services for both client assets and client money. Revenue is
measured based on the transaction price determined in a contract with a
customer. The Group recognises revenue when it transfers control over a good
or service to a customer.
Recurring fixed
Recurring fixed revenue comprises recurring administration fees and media
revenue.
Administration fees include fees charged to customers in relation to the
administration services provided by the Group. The fees are charged in arrears
on a quarterly basis and are based on a tiered pricing structure. They are
recognised over time as the related service is provided.
Included within these fees are annual pension administration fees, where
revenue is recognised over time using an input method to measure progress
towards satisfaction of a single performance obligation.
Media revenue includes advertising, subscriptions, events and award
ceremonies. Subscriptions revenue is recognised evenly over the period in
which the related service is provided. Advertising, event and award ceremony
revenue is recognised in the period in which the publication is made available
to customers or the event or award ceremony takes place.
Recurring ad valorem
Recurring ad valorem revenue comprises custody fees, investment management
fees and retained
interest income.
Custody fees represent periodic fee income that is charged with reference to
the market value of retail customer assets, based on asset mix and portfolio
size. They are charged in arrears on a periodic basis and recognised over time
as custody services, specifically the holding and safeguarding of client
assets, are provided to the client.
Investment management fees represent periodic fee income relative to the value
of client assets within managed portfolios. They are charged in arrears on a
periodic basis and recognised over time as investment management services are
provided to the client.
Retained interest income relates to interest generated over time based on the
level of customer cash balances. Revenue is recognised evenly across the
period in which it is generated.
Transactional
Transactional revenue comprises dealing fees, foreign exchange fees and
pension scheme activity fees. Transaction-based fees are recognised when
received in accordance with the date of settlement of the underlying
transaction - specifically when the instruction has been executed in
accordance with the client instructions.
Revenue is only recognised to the extent that management is satisfied that it
is highly probable that no significant reversal of the revenue recognised will
be required when uncertainties are resolved.
Other non-recurring fees are recognised in the period to which the service is
rendered.
Customer incentives
Customer incentives paid to new retail customers are considered to be a
reduction in revenue under IFRS 15 Revenue from Contracts with Customers. In
line with IFRS 15, customer incentives to acquire new customers are offset
against recurring ad valorem revenue and spread over the period which the
customer is required to remain a customer in order to be eligible for the
incentive. Customer incentives are paid in cash and vouchers.
2.4 Share-based payments
The Group operates a number of share-based payment arrangements for its
employees and non-employees. These generally involve an award of share options
(equity-settled share-based payments) which are measured at the fair value of
the equity instrument at the date of grant.
The share-based payment arrangements have conditions attached before the
beneficiary becomes entitled to the award. These can be performance and / or
service conditions.
The total cost is recognised, together with a corresponding increase in the
equity reserves, over the period in which the performance and / or service
conditions are fulfilled. Costs relating to the development of
internally-generated intangible assets are capitalised in accordance with IAS
38. The cumulative cost recognised for equity-settled transactions at each
reporting date until the vesting date reflects the extent to which the vesting
period has expired and management's estimate of shares that will eventually
vest. At the end of each reporting period, the entity revises its estimates of
the number of share options expected to vest based on the non-market vesting
conditions. It recognises any revision to original estimates in the income
statement and to intangible assets where appropriate, with a corresponding
adjustment to equity reserves.
No cost is recognised for awards that do not ultimately vest, except for
equity-settled transactions for which vesting is conditional upon a market or
non-vesting condition. These are treated as vested irrespective of whether or
not the market or non-vesting condition is satisfied, provided that all other
performance and / or service conditions are satisfied.
The cost of equity-settled awards is determined by the fair value at the date
when the grant is made using an appropriate valuation model or the market
value discounted to its net present value, further details of which are given
in note 24. The expected life applied in the model has been adjusted based on
management's best estimate for the effects of non-transferability, exercise
restrictions and behavioural considerations.
2.5 Investment income
Investment income comprises the returns generated on corporate cash at banks
and short-term highly-liquid investments. Investment income is recognised in
the income statement as it accrues, using the effective interest rate method.
2.6 Finance costs
Finance costs comprise interest incurred on lease liabilities recognised under
IFRS 16 Leases. Finance costs are recognised in the income statement using the
effective interest rate method.
2.7 Taxation
The tax expense represents the sum of the current tax payable and deferred
tax. Tax is recognised in the income statement except to the extent that it
relates to items recognised directly in equity, in which case it is recognised
in equity.
Current tax is the expected tax payable or receivable on the taxable income or
loss for the year and any adjustment to tax payable or receivable in respect
of previous years, using tax rates enacted or substantively enacted at the
reporting date.
Deferred tax is provided on temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes. Deferred tax is not recognised if the temporary
difference arises from:
· the initial recognition of goodwill; or
· investments in subsidiaries to the extent that the Group is able
to control the timing of the reversal of the temporary differences and it is
probable they will not reverse in the foreseeable future; or
· the initial recognition of an asset and liability in a
transaction other than a business combination that, at the time of the
transaction, affects neither the accounting nor taxable profit or loss and
does not give rise to equal taxable and deductible temporary differences.
Deferred tax assets are recognised for unused tax losses, unused tax credits
and deductible temporary differences to the extent that it is probable that
taxable profits will be available in the future, against which deductible
temporary differences can be utilised. Recognised and unrecognised deferred
tax assets are reassessed at each reporting date.
The principal temporary differences arise from accelerated capital allowances
and provisions for share-based payments.
Deferred tax is measured at the tax rates that are expected to be applied to
temporary differences when they reverse, using tax rates enacted or
substantively enacted at the reporting date. Deferred tax assets and
liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to
income taxes levied by the same taxation authority and the Group intends to
settle its current tax assets and liabilities on a net basis.
2.8 Goodwill
Goodwill arising on consolidation represents the difference between the
consideration transferred and the fair value of net assets acquired of the
subsidiary at the date of acquisition. Goodwill is not amortised, but is
reviewed at least annually for impairment. Any impairment is recognised
immediately through the income statement and is not subsequently reversed.
For the purposes of impairment testing, goodwill acquired in a business
combination is allocated to the cash generating unit (CGU) expecting to
benefit from the synergies of the combination. CGUs to which goodwill has been
allocated are reviewed annually or more frequently when there is an indication
that the goodwill relating to that CGU may have been impaired. If the
recoverable amount from the CGU is less than the carrying amount of the assets
present on the consolidated statement of financial position forming that CGU,
the impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the assets forming that CGU and then to the assets of
the CGU pro-rata on the basis of the carrying amount of each asset in the CGU.
On disposal of a subsidiary, the attributable amount of goodwill is included
in the determination of the profit or loss on disposal.
2.9 Intangible assets (excluding goodwill)
Intangible assets comprise computer software and mobile applications, and the
Group's Key Operating Systems (KOS). These are stated at cost less
amortisation and any recognised impairment loss. Amortisation is charged on
all intangible assets excluding goodwill and assets under construction at
rates to write off the cost or valuation, less estimated residual value, of
each asset evenly using a straight-line method over its estimated useful
economic life as follows:
Computer software and mobile applications - 3-4 years
KOS - 10-15 years
KOS enhancements - over the remaining life of the KOS
The assets' estimated useful lives, amortisation rates and residual values are
reviewed, and adjusted if appropriate at the end of each reporting period. An
asset's carrying value is written down immediately to its recoverable amount
if its carrying value is greater than the recoverable amount.
The gain or loss arising on the disposal or retirement of an asset is
determined as the difference between the sales proceeds and the carrying
amount of the asset and is recognised in the income statement immediately.
2.10 Internally-generated intangible assets
An internally-generated asset arising from work performed by the Group is
recognised only when the following criteria can be demonstrated:
· the technical feasibility of completing the intangible asset so
that it will be available for use or sale;
· the intention to complete the intangible asset and use or sell
it;
· the ability to use or sell the intangible asset;
· how the intangible asset will generate probable future economic
benefits;
· the availability of adequate technical, financial and other
resources to complete the development and to use or sell the intangible asset;
and
· the ability to measure reliably the expenditure attributable to
the intangible asset during its development.
The amount initially recognised for internally-generated intangible assets is
the sum of expenditure incurred from the date when the asset first meets the
recognition criteria listed above. Development expenditure that does not meet
the criteria is recognised as an expense in the period which it is incurred.
Subsequent to initial recognition, internally-generated intangible assets are
reported at cost less accumulated amortisation and accumulated impairment
losses, on the same basis as intangible assets that are acquired separately.
Assets under construction are not amortised until the asset is operational and
available for use.
Expenditure on research activities is recognised as an expense in the period
in which it is incurred.
2.11 Property, plant and equipment
All property, plant and equipment is stated at cost, which includes
directly-attributable acquisition costs, less accumulated depreciation and any
recognised impairment losses. Depreciation is charged on all property, plant
and equipment, except assets under construction, at rates to write off the
cost, less estimated residual value, of each asset evenly using a
straight-line method over its estimated useful economic life as follows:
Leasehold improvements - over the life of the lease
Office equipment - 4 years
Computer equipment - 3-5 years
The assets' estimated useful lives, depreciation rates and residual values are
reviewed, and adjusted if appropriate at the end of each reporting period. An
asset's carrying value is written down immediately to its recoverable amount
if its carrying value is greater than the recoverable amount.
Assets under construction relate to capital expenditure on assets not yet in
use by the Group and are therefore not depreciated.
The gain or loss arising on the disposal or retirement of an asset is
determined as the difference between the sales proceeds and the carrying
amount of the asset and is recognised in the income statement immediately.
2.12 Leased assets and lease liabilities
Leases
(i) Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the
leases. Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of
lease liabilities. The cost of right-of-use assets includes the amount of
lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives
received.
Depreciation is applied in accordance with IAS 16 Property, Plant and
Equipment. Right-of-use assets are depreciated over the lease term.
Right-of-use assets are subject to impairment.
(ii) Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities
measured at the present value of lease payments to be made over the lease
term. The lease payments include fixed payments less any lease incentives
receivable.
In calculating the present value of lease payments, the Group uses the
incremental borrowing rate at the lease commencement date if the interest rate
implicit in the lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect the addition of
interest and reduced for the lease payments made. In addition, the carrying
amount of lease liabilities is re-measured if there is a modification, a
change in the lease term, a change in the fixed lease payments or a change in
the assessment to purchase the underlying asset.
2.13 Impairment of intangible assets (excluding goodwill), property, plant and
equipment and leased assets
At each reporting date the Group reviews the carrying amount of its intangible
assets, property, plant and equipment and leased assets to determine whether
there is any indication that those assets have suffered impairment. If such an
indication exists then the recoverable amount of that particular asset is
estimated.
An impairment test is performed for an individual asset unless it belongs to a
CGU, in which case the present value of the net future cash flows generated by
the CGU is tested. A CGU is the smallest group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows
of other assets or of groups of other assets. An intangible asset with an
indefinite useful life or an intangible asset not yet available for use is
tested for impairment annually and whenever there is an indication that the
asset may be impaired.
The recoverable amount is the higher of its fair value less costs to sell and
its value-in-use. In assessing its value-in-use, the estimated net future
pre-tax cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset for which the estimates of future
cash flows have not been adjusted.
If the recoverable amount of an asset or CGU in which the asset sits is
estimated to be lower than the carrying value, then the carrying amount is
reduced to the recoverable amount. An impairment loss is recognised
immediately in the income statement as an expense.
An impairment loss is reversed only if subsequent events reverse the effect of
the original event which caused the recognition of the impairment. An
impairment loss is reversed only to the extent that the asset's carrying
amount does not exceed the carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment loss had been
recognised. An impairment reversal is recognised in the income statement
immediately.
2.14 Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, and it is probable that the Group
will be required to settle that obligation and the obligation can be reliably
estimated.
The amount recognised as a provision is the Directors' best estimate of the
consideration required to settle that obligation at the reporting date, and is
discounted to present value where the effect is material.
2.15 Levies
The Group applies the guidance provided in IFRIC 21 to levies issued under the
Financial Services Compensation Scheme. The interpretation clarifies that an
entity should recognise a liability when it conducts the activity that
triggers the payment of the levy under law or regulation.
2.16 Financial instruments
Financial assets and liabilities are recognised in the statement of financial
position when a member of the Group becomes party to the contractual
provisions of the instrument.
Financial assets
Financial assets are classified according to the business model within which
the asset is held and the
contractual cash-flow characteristics of the asset. All financial assets are
classified at amortised cost.
Financial assets at amortised cost
The Group's financial assets at amortised cost comprise trade receivables,
other receivables and
cash and cash equivalents.
Financial assets at amortised cost are initially recognised at fair value
including any directly-attributable costs. They are subsequently measured at
amortised cost using the effective interest method, less any impairment. No
interest income is recognised on financial assets measured at amortised cost,
with the exception of cash and cash equivalents, as all financial assets at
amortised cost are short-term receivables and the recognition of interest
would be immaterial. Financial assets are derecognised when the contractual
right to the cash flows from the asset expire.
Trade and other receivables
Trade and other receivables are initially recorded at the fair value of the
amount receivable and subsequently measured at amortised cost using the
effective interest method, less any provision for impairment. Other
receivables relate to balances with stock exchange member firms, other counter
parties and unsettled client receivables.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, on-demand deposits with banks
and other short-term highly-liquid investments with original maturities of one
month or less, or those over which the Group has an immediate right of recall.
Where appropriate, bank overdrafts are shown within borrowings in current
liabilities in the consolidated statement of financial position.
Impairment of financial assets
The Group applies the IFRS 9 Financial Instruments simplified approach to
measuring expected credit losses which uses a lifetime expected loss allowance
for all trade receivables and contract assets. To measure the expected credit
losses, trade receivables have been grouped based on shared credit risk
characteristics and number of days past due. The Group considers a trade
receivable to be in default when it is past due by more than 90 days, or when
the value of a client's receivable balance exceeds the value of the liquid
assets they hold with AJ Bell.
The expected loss rates are based on the payment profiles of sales over a
period of 12 months before 30 September 2025 and the corresponding historical
credit losses experienced within this period.
The carrying amount of the financial assets is reduced by the use of a
provision. When a trade receivable is considered uncollectable, it is written
off against the provision. Changes in the carrying amount of the provision are
recognised in the income statement.
Financial liabilities
Financial liabilities are classified according to the substance of the
contractual arrangements
entered into.
Lease liabilities
Lease liabilities consist of amounts payable by the Group measured at the
present value of lease
payments to be made over the lease term.
Other financial liabilities
The Group's other financial liabilities comprise trade and other payables.
Other financial liabilities are initially measured at fair value, net of
transaction costs. They are subsequently carried at amortised cost using the
effective interest rate method. A financial liability is derecognised when,
and only when, the Group's obligations are discharged, cancelled or they
expire.
Trade and other payables
Trade and other payables consist of amounts payable to clients and other
counterparties and obligations to pay suppliers for goods and services in the
ordinary course of business, including amounts recognised as accruals. Trade
and other payables are measured at amortised cost using the effective interest
method.
2.17 Employee benefit trust
The employee benefit trusts provide for the granting of shares, principally
under share option schemes. AJ Bell plc is considered to have control of the
trusts, and consolidates the assets and liabilities of the trusts into the
Group.
Shares of AJ Bell plc held by the trusts are treated as 'own shares' held and
shown as a deduction from equity. Subsequent consideration received for the
sale of such shares is also recognised in equity, with any difference between
the sales proceeds and original cost being taken to equity.
2.18 Assets held for sale
The Company classifies assets as held for sale if their carrying amounts will
be recovered principally through a sale transaction rather than through
continuing use. Assets classified as held for sale are measured at the lower
of their carrying amount and fair value.
The criteria for the held for sale classification is regarded as met only when
the sale is highly probable, and the asset is available for immediate sale in
its present condition. Actions required to complete the sale should indicate
that it is unlikely that significant changes to the sale will be made or that
the decision to sell will be withdrawn. Management must be committed to the
plan to sell the asset and the sale expected to be completed within one year
from the date of classification.
Assets classified as held for sale are presented separately as current assets
in the statement of financial position.
3 Critical accounting adjustments and key sources of estimation uncertainty
In the application of the Group's material accounting policies, which are
described in note 2, the Directors are required to make judgements, estimates
and assumptions to determine the carrying amounts of certain assets and
liabilities. The estimates and associated assumptions are based on the Group's
historical experience and other relevant factors. Actual results may differ
from the estimates applied.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods.
There are no judgements made, in applying the material accounting policies,
about the future, or any other major sources of estimation uncertainty at the
end of the reporting period, that have a significant risk of resulting in a
material adjustment to the carrying amounts of assets and liabilities within
the next financial year.
4 Segmental reporting
It is the view of the Directors that the Group has a single operating segment
being investment services in the advised and D2C space administering
investments in SIPPs, ISAs and General Investment / Dealing accounts. Details
of the Group's revenue, results and assets and liabilities for the reportable
segment are shown within the consolidated income statement and consolidated
statement of financial position.
The Group operates in one geographical segment, being the UK.
Due to the nature of its activities, the Group is not reliant on any one
customer or group of customers for generation of revenues.
5 Revenue
The analysis of the consolidated revenue is as follows:
2025 2024
£000 £000
Recurring fixed 32,496 32,078
Recurring ad valorem 232,384 202,040
Transactional 52,967 35,317
317,847 269,435
Recurring ad valorem fees include custody fees. These recurring charges are
derived from the market value of retail customer assets, based on asset mix
and portfolio size, and are therefore subject to market and economic risks.
The rate charged is variable dependent on the product, portfolio size and
asset mix within the portfolio. The risks associated with this revenue stream,
in terms of its nature and uncertainty, are discussed further within note 25.
Recurring ad valorem fees also include retained interest income earned on the
level of customer cash balances, which are based on product type, customers'
asset mix and portfolio size and are therefore subject to market and economic
risks. The risks associated with this revenue stream, in terms of its nature
and uncertainty, are discussed further within note 25.
The total revenue for the Group has been derived from its principal activities
undertaken in the United Kingdom.
6 Operating profit
Profit for the financial year has been arrived at after charging:
2025 2024
£000 £000
Amortisation of intangible assets 816 430
Depreciation of property, plant and equipment 1,258 1,170
Depreciation of right-of-use assets 2,006 1,832
Loss on the disposal of property, plant and equipment 37 340
Auditors' remuneration 1,324 1,101
Provision for customer compensation (see note 22) - 6,239
Exceptional costs 1,141 -
Staff costs (see note 7) 96,203 80,340
During the year there was £2,068,000 in relation to research and development
expensed to the income statement (2024: £nil).
Exceptional costs relate to the transaction costs associated with the disposal
of the Platinum SIPP and SASS business.
Auditors' remuneration
The analysis of auditors' remuneration is as follows:
2025 2024
£000 £000
Fees payable to the Company's auditor for the audit of the Company's annual 409 345
accounts
Fees payable to the Company's auditor for the audit of the Company's 510 494
subsidiaries' accounts, pursuant to legislation
Audit-related assurance services 391 199
Other assurance services 14 63
Total(1) 1,324 1,101
(1) £45,000 relates to the audit for the year ended 2024 but was charged and
recognised in 2025 (2024: £90,000 relates to the audit for the year ended
2023).
Of the above, audit-related services for the year totalled £1,310,000 (2024:
£1,072,000).
7 Staff costs
The average monthly number of employees (including Executive Directors) of the
Group was:
2025 2024
No. No.
Operational and support 947 928
Technology 367 330
Distribution 191 163
1,505 1,421
Employee benefit expense for the Group during the year:
2025 2024
(re-represented)¹
£000 £000
Wages and salaries 77,275 66,916
Social security costs 9,622 7,505
Retirement benefit costs 4,538 3,675
Termination benefits 668 742
Share-based payments (note 24) 4,100 1,502
96,203 80,340
¹ The comparative information has been re-presented for the reclassification
of employee pension contributions to accurately reflect the categorisation of
staff costs; this resulted in an increase to wages and salaries and a
reduction in retirement benefit costs of £4,752,00. Total costs were not
impacted.
In addition to the above, £1,196,000 staff costs (2024: £1,472,000) have
been capitalised as an internally-generated intangible asset (see note 14).
8 Investment income
2025 2024
£000 £000
Interest income on cash balances 6,800 6,909
9 Finance costs
2025 2024
£000 £000
Interest on lease liabilities 931 904
10 Taxation
Tax charged in the income statement:
2025 2024
£000 £000
Current taxation
UK corporation tax 35,997 29,564
Adjustment to current tax in respect of prior periods (102) (12)
35,895 29,552
Deferred taxation
Origination and reversal of temporary differences (3,293) (537)
Adjustment to deferred tax in respect of prior periods 103 (27)
(3,190) (564)
Total tax expense 32,705 29,988
Corporation Tax is calculated at 25% of the estimated assessable profit for
the year to 30 September 2025 (2024: 25%).
In addition to the amount charged to the income statement, certain tax amounts
have been credited directly to equity as follows:
2025 2024
£000 £000
Deferred tax relating to share-based payments (note 18) (714) (498)
Current tax relief on exercise of share options (178) (9)
(892) (507)
The charge for the year can be reconciled to the profit per the income
statement as follows:
2025 2024
£000 £000
Profit before tax 137,826 113,283
UK Corporation Tax at 25% (2024: 25%): 34,457 28,321
Effects of:
Expenses not deductible for tax purposes 403 363
Income not taxable in determining taxable profit - (461)
Amounts not recognised 3 804
Pre-trading expenditure recognised as a deferred tax asset (2,159) -
Adjustments to current and deferred tax in respect of prior periods 1 (39)
32,705 29,988
Effective tax rate 23.7% 25.6%
A deferred tax asset of £3,000,001 has been recognised for the first time in
the year (note 18),of which £2,159,000 is related to pre-trading losses
incurred up to and including 30 September 2024.
Deferred tax has been recognised at 25%, being the rate expected to be in
force at the time of the reversal of the temporary difference (2024: 25%). A
deferred tax asset in respect of future share option deductions has been
recognised based on the Company's share price at 30 September 2025.
11 Dividends
2025 2024
£000 £000
Amounts recognised as distributions to equity holders during the year:
Final dividend of 8.25p (2023: 7.25p per share) 34,019 29,891
Interim dividend of 4.50p (2024: 4.25p per share) 18,269 17,525
Total dividends paid 52,288 47,416
Proposed Final dividend of 9.75p (2024: 8.25p) per share 39,348 34,019
A final dividend declared of 9.75p per share is payable on 13 February 2026 to
shareholders on the register on 16 January 2026. The ex-dividend date will be
15 January 2026. The final dividend is subject to approval by the shareholders
at the Annual General Meeting on 4 February 2026 and has not been included as
a liability within these financial statements.
Dividends are payable on all ordinary shares as disclosed in note 23.
The employee benefit trusts, which held 292,278 ordinary shares (2024:
689,728) in AJ Bell plc at 30 September 2025, have agreed to waive all
dividends. This represented 0.1% (2024: 0.2%) of the Company's called-up share
capital. The maximum amount of shares held by the trusts during the year was
689,728.
12 Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
the owners of the Parent Company by the weighted average number of ordinary
shares, excluding own shares, in issue during the year.
Diluted earnings per share is calculated by adjusting the weighted average
number of shares to assume exercise of all potentially dilutive share options.
The weighted average number of anti-dilutive share options and awards excluded
from the calculation of diluted earnings per share was nil as at 30 September
2025 (2024: 219,558).
The calculation of basic and diluted earnings per share is based on the
following data:
2025 2024
£000 £000
Earnings
Earnings for the purposes of basic and diluted earnings per share being profit 105,121 84,295
attributable to the owners of the Parent Company
2025 2024
No. No.
Number of shares
Weighted average number of ordinary shares for the purposes of basic EPS in 409,332,625 412,040,137
issue during the year
Effect of potentially dilutive share options 1,941,713 2,313,011
Weighted average number of ordinary shares for the purposes of fully diluted 411,274,338 414,353,148
EPS
2025 2024
Earnings per share (EPS)
Basic (pence) 25.68 20.46
Diluted (pence) 25.56 20.34
13 Goodwill
2025 2024
£000 £000
Cost
As at 1 October and 30 September 7,103 7,103
Impairment
As at 1 October and 30 September (112) (112)
Carrying value at 30 September 6,991 6,991
Goodwill relates to acquisitions allocated to the Group's single cash
generating unit (CGU).
The Group tests goodwill annually for impairment or more frequently if there
are indications that goodwill might be impaired.
The recoverable amount of the assets within the CGU is determined using
value-in-use calculations. In assessing the value-in-use the estimated future
cash flows of the CGU are discounted to their present value using a pre-tax
discount rate. Cash flows are based upon the most recent forecasts, approved
by the Board, covering a three-year period.
The key assumptions for value-in-use calculations are those regarding discount
rate, growth rates and expected changes to revenues and costs in the period,
as follows:
· a compound rate of 10.9% (2024: 6.4%) has been used to assess the
expected growth in revenue for the three-year forecast period. This is based
on a combination of historical and expected future performance;
· benefits realised from our economies of scale are passed onto
customers in the form of price reductions; and
· modest ongoing maintenance expenditure is required on the assets
within the CGU in order to generate the expected level of cash flows.
The Directors have made these assumptions based upon past experience and
future expectations in the light of anticipated market conditions and the
results of streamlining processes through implementation of the target
operating model for customer services.
Cash flows have been discounted using a pre-tax discount rate of 11.7% (2024:
11.4%).
The pre-tax discount rate has been calculated using an independent external
source. The Directors have performed sensitivity analysis on their
calculations, with key assumptions being revised adversely to reflect the
potential for future performance being below expected levels. Changes to
revenue are the most sensitive as they would have the greatest impact on
future cash flows. However, even with a 25% reduction in revenue, there would
still be sufficient headroom to support the carrying value of the assets under
the CGU.
Based upon the review above the estimated value-in-use of the CGU comfortably
supports the carrying value of the assets held within it, and so the Directors
are satisfied that for the year ended 30 September 2025 goodwill is not
impaired.
14 Other intangible assets
Key operating system Computer software and mobile applications Total
£000 £000 £000
Cost
At 1 October 2023 15,136 7,007 22,143
Additions 537 1 538
Disposals - (238) (238)
At 30 September 2024 15,673 6,770 22,443
Additions 1,270 - 1,270
Disposals (2,928) 2,928 -
At 30 September 2025 14,015 9,698 23,713
Amortisation
As at 1 October 2023 7,865 6,845 14,710
Amortisation and impairment 338 92 430
Eliminated on disposal - (237) (237)
At 30 September 2024 8,203 6,700 14,903
Amortisation 506 310 816
At 30 September 2025 8,709 7,010 15,719
Carrying amount
At 30 September 2025 5,306 2,688 7,994
At 30 September 2024 7,470 70 7,540
At 30 September 2023 7,271 162 7,433
Average remaining amortisation period 1 year 2 years
The amortisation and impairment charge above is included within administrative
expenses in the income statement.
Additions include an amount of £1,270,000 relating to internally-generated
assets for the year ended 30 September 2025 (2024: £537,000), of which
£74,000 relates to capitalised share-based payment expenses (2024: £935,000
reversal of capitalised share-based payment expenses due to the lapse of
previously issued equity instruments under the earn-out arrangement). The
transfer of £2,928,000 from key operating systems to mobile applications
during the year represents the reallocation of an asset under construction
following the launch of AJ Bell Touch.
The net carrying amount of key operating systems includes £237,000 (2024:
£6,967,000) relating to assets in development which are currently not
amortised. At the year end, the Group had entered into contractual commitments
for the acquisition of intangible assets to the value of £1,437,000 (2024:
£nil).
15 Property, plant and equipment
Leasehold improvements Office equipment Computer equipment Total
£000 £000 £000 £000
Cost
At 1 October 2023 2,387 1,008 7,374 10,769
Additions 645 7 824 1,476
Disposals (3) (529) (1,187) (1,719)
Transfers - 20 (20) -
At 30 September 2024 3,029 506 6,991 10,526
Additions 87 114 1,039 1,240
Disposals (140) (52) (662) (854)
Transfers - 43 (43) -
At 30 September 2025 2,976 611 7,325 10,912
Depreciation
At 1 October 2023 996 917 5,047 6,960
Charge for the year 204 23 943 1,170
Eliminated on disposal (2) (496) (883) (1,381)
Transfers - 36 (36) -
At 30 September 2024 1,198 480 5,071 6,749
Charge for the year 326 39 893 1,258
Eliminated on disposal (138) (52) (627) (817)
At 30 September 2025 1,386 467 5,337 7,190
Carrying amount
At 30 September 2025 1,590 144 1,988 3,722
At 30 September 2024 1,831 26 1,920 3,777
At 30 September 2023 1,391 91 2,327 3,809
The depreciation charge above is included within administrative expenses in
the income statement.
At the year end, the Group had entered into contractual commitments for the
acquisition of property, plant and equipment to the value of £19,000 (2024:
£177,000).
Computer equipment includes assets under construction of £533,000 (2024:
£117,000) which are currently not depreciated.
16 Leases
i) Right-of-use assets
Property Computer and office equipment Total
£000 £000 £000
Cost
At 1 October 2023 16,857 267 17,124
Additions 2,759 36 2,795
Disposals - (1) (1)
At 30 September 2024 19,616 302 19,918
Additions 800 1 801
Disposals (1,372) - (1,372)
At 30 September 2025 19,044 303 19,347
Depreciation
At 1 October 2023 6,098 226 6,324
Charge for the year 1,799 33 1,832
At 30 September 2024 7,897 259 8,156
Charge for the year 1,974 32 2,006
Eliminated on disposals (1,372) - (1,372)
At 30 September 2025 8,499 291 8,790
Carrying amount
At 30 September 2025 10,545 12 10,557
At 30 September 2024 11,719 43 11,762
At 30 September 2023 10,759 41 10,800
The depreciation charge above is included within administrative expenses in
the income statement.
The Group has entered into various leases in respect of property and office
equipment as a lessee. Lease terms are negotiated on an individual basis and
contain a range of different terms and conditions. Property leases typically
run for a period of five to fifteen years and office equipment for a period of
one to six years.
Additions include £267,000 relating to the increase in the Group's
dilapidation provision (2024: £441,000) (see note 22).
Disposals include £1,372,000 relating to the derecognition of an office
building following expiration of the lease. Other than property and office
equipment there are no further classes of assets leased by the Group.
ii) Lease liabilities
2025 2024
£000 £000
Current 2,216 1,453
Non-current 9,842 11,724
12,058 13,177
The undiscounted maturity analysis of lease liabilities is shown below:
2025 2024
£000 £000
Within one year 3,004 2,363
In the second to fifth years inclusive 9,975 10,572
After five years 1,544 3,603
Total minimum lease payments 14,523 16,538
The total lease interest expense for the year ended 30 September 2025 was
£931,000
(2024: £904,000). Principal cash outflow for leases accounted for under IFRS
16 Leases for the year
ended 30 September 2025 was £1,654,000 (2024: £1,583,000).
17 Subsidiaries
The Group consists of a Parent Company, AJ Bell plc incorporated within the
UK, and a number of subsidiaries held directly and indirectly by AJ Bell plc
which operate and are incorporated in the UK. Note 6 to the Company's separate
financial statements lists details of the interests in subsidiaries.
18 Deferred tax asset
2025 2024
£000 £000
Deferred tax asset 5,848 1,869
Deferred tax liability (398) (323)
5,450 1,546
The movement on the deferred tax account and movement between deferred tax
assets and liabilities is as follows:
Accelerated Share-based Short-term Losses Total
capital payments timing
allowances differences
£000 £000 £000 £000 £000
At 1 October 2023 (515) 738 261 - 484
Credit / (charge) to income statement 192 393 (21) - 564
Charge to equity - 498 - - 498
At 30 September 2024 (323) 1,629 240 - 1,546
Credit / (charge) to income statement (75) 239 3,026 - 3,190
Credit to equity - 714 - - 714
At 30 September 2025 (398) 2,582 3,266 - 5,450
The current year deferred tax adjustment relating to share-based payments
reflects the estimated total future tax relief associated with the cumulative
share-based payment benefit arising in respect of share options granted but
unexercised as at 30 September 2025.
Deferred tax assets have been recognised in respect of other temporary
differences giving rise to deferred tax assets where it is probable that these
assets will be recovered.
During the year a deferred tax asset of £3,001,000 has been recognised on
pre-trading expenditure of £12,004,000 (2024: £nil).
19 Trade and other receivables
2025 2024
£000 £000
Trade receivables 1,478 3,409
Prepayments 9,478 7,812
Accrued income 35,711 37,327
Other receivables 21,783 10,997
68,450 58,501
The Directors consider that the carrying amount of trade and other receivables
approximates their fair value. Included within other receivables are balances
with stock exchange member firms, other counter parties and unsettled client
receivables.
The ageing profile of trade receivables was as follows:
2025 2024
£000 £000
Current - not past due 1,064 2,202
Past due:
0 to 30 days 7 476
31 to 60 days 33 279
61 to 90 days 39 173
91 days and over 1,490 1,341
2,633 3,406
Provision for impairment (1,155) (793)
1,478 2,613
The movement in the provision for impairment of trade receivables is as
follows:
2025 2024
£000 £000
Opening loss allowance as at 1 October 988 793
Loss allowance recognised 305 308
Receivables written off during the year as uncollectable (81) (89)
Unused amount reversed (57) (24)
Balance at end of year 1,155 793
20 Cash and cash equivalents
2025 2024
£000 £000
Group cash and cash equivalent balances 188,192 196,651
Cash and cash equivalents at 30 September 2025 and 30 September 2024 are
considered to be holdings of less than one month, or those over which the
Group has an immediate right of recall.
21 Trade and other payables
2025 2024
£000 £000
Trade payables 1,937 463
Social security and other taxes 3,806 3,822
Other payables 968 749
Accruals 55,699 54,661
Deferred income 2,111 2,226
64,521 61,921
Trade payables, accruals and deferred income principally comprise amounts
outstanding for trade purposes including payment of interest to customers and
ongoing costs of the business. The Directors consider that the carrying amount
of trade payables approximates their fair value.
Deferred income in the current and prior year relates to contract liabilities.
The prior year deferred income balance has now all been recognised as revenue
and the current year balance all relates to cash received in the current
period. Total deferred income as at 30 September 2025 is expected to be
recognised as revenue in the coming year.
22 Provisions
Office dilapidations Compensation provisions Other provisions Total
£000 £000 £000 £000
At 1 October 2024 2,606 7,017 170 9,793
Additional provisions 267 - 306 573
Provisions used (130) (1,013) (70) (1,213)
Unused provision reversed (104) - - (104)
At 30 September 2025 2,639 6,004 406 9,049
Included in current liabilities - 6,004 406 6,410
Included in non-current liabilities 2,639 - - 2,639
Office dilapidations
The Group is contractually obliged to reinstate its leased properties to their
original state and layout at the end of the lease terms. During the year,
management reviewed the Group's dilapidation provision and the assumptions on
which the provision is based. The estimate is based upon property location,
size of property and an estimate of the charge per square foot. A further
charge of £267,000 has been recognised, due to an increase in the estimated
charge per square foot. The office dilapidations provision represents
management's best estimate of the costs which will ultimately be incurred in
settling these obligations.
Redress provisions
The provision has been recognised in relation to costs for potential customer
redress. The redress relates to potential liability for historical SIPP
operator due diligence issues in respect of non-mainstream investments, which
subsequently became distressed, made by customers who had regulated financial
advisers acting for them between April 2007 and 2014 and does not relate to
ongoing business operations. Based on published Financial Ombudsman Service
decisions, we believe that future complaints would be time-limited.
The figure represents our current most reliable estimate of the present
obligation, accepting that there is still some uncertainty regarding the
amounts required to settle the obligations as work is ongoing. The estimate
has been made by assessing a range of different outcomes based on key
assumptions, including the calculation of investment loss and application of
limitation. Sensitivity analysis of these key assumptions would be unlikely to
have a material impact on the consolidated financial statements.
Although the timings of the outflows are not determined, we expect payment to
be made within 12 months of the reporting date.
Other provisions
The other provisions relate to the costs associated with defending a small
number of legal cases. The timings of the outflows are uncertain and could be
paid within 12 months of the reporting date.
23 Share capital
2025 2024 2025 2024
Issued, fully-called and paid: Number Number £ £
Ordinary shares of 0.0125p each 403,862,576 413,044,826 50,483 51,631
All ordinary shares have full voting and dividend rights.
The following transactions have taken place during the year:
Transaction type Share class Number of shares Share premium £000
Exercise of EIP options Ordinary shares of 0.0125p each 111,103 -
Exercise of CSOP options Ordinary shares of 0.0125p each 47,973 175,000
Free shares Ordinary shares of 0.0125p each 455,722 -
Share buyback Ordinary shares of 0.0125p each (9,797,048) -
(9,182,250) 175,000
The holders of ordinary shares are entitled to receive dividends as declared
from time to time and are entitled to one vote per share at general meetings
of the Company. They are entitled to share in the proceeds on the return of
capital, or upon the winding up of the Company in proportion to the number of
and amounts paid on shares held. The shares are non-redeemable.
Own shares
As at 30 September 2025, the Group held 292,278 (2024: 689,728) in own shares
in employee benefit trusts to satisfy future share incentive plans. Shares
held by the Trust are held at £926,000 (2024: £2,049,000) being the price
paid to repurchase, and the carrying value is shown as a reduction within
shareholders' equity.
During the year, 397,450 options (2024: 392,615) were exercised and issued
from the employee benefit trust in the year. The costs of operating the trusts
are borne by the Group but are not material. The trusts waived the right to
receive dividends on these shares.
Share buybacks
In December 2024, the Group announced a share buyback programme for up to a
maximum aggregate consideration of £30,000,000 which commenced on 5 December
2024 and completed in April 2025.
In the period to 23 April 2025, the Group purchased 6,963,824 shares at a
cumulative cost of £30,210,000 (including transaction costs), concluding the
initial share buyback programme.
Following this, a second share buyback programme of £25,000,000 was
announced, which commenced on 23 May 2025. From the commencement date to 30
September 2025, 2,833,224 ordinary shares were purchased under the second
share buyback programme, at a total cost of £14,400,000 (including
transaction costs).
All ordinary shares acquired have been subsequently cancelled, with the
nominal value of ordinary shares cancelled deducted from share capital against
the capital redemption reserve.
24 Share-based payments
Company Share Option Plan (CSOP)
The CSOP is a HMRC-approved scheme in which the Board, at their discretion,
grant options to employees to purchase ordinary shares. Each participating
employee can be granted options up to the value of £60,000. Options granted
under the CSOP can be exercised between the third and tenth anniversary after
the date of grant and are usually forfeited if the employee leaves the Group
before the option expires. The expense for share-based payments under the CSOP
is recognised over the respective vesting period of these options.
Buy As You Earn plan (BAYE)
The BAYE plan is an all-employee share plan under which shares can be issued
to employees as either free shares or partnership shares.
The Company may grant free shares up to a maximum of £3,600 per employee in a
tax year. During the year, free shares up to a maximum value of £2,000 have
been offered to all employees who were employed by the Company at 30 June 2024
(2024: £2,000).
Employees have been offered the opportunity to participate in the partnership
plan to enable such employees to use part of their pre-tax salary to acquire
shares. The limit to the pre-tax salary deduction is £1,800 or, if lower, 10%
of salary each year.
The plan entitles employees to use this deduction to buy shares in the Company
on a monthly basis at the current market value. Employees are able to withdraw
their shares from the plan at any time but may be subject to income tax and
National Insurance charges if withdrawn within five years of purchasing the
shares. Therefore the monthly partnership plan does not give rise to a
share-based payment charge.
Executive Incentive Plan (EIP)
The EIP is a performance share plan that involves the award of deferred
nominal cost options to participants conditional on the achievement of
specified performance targets and continuous employment over a certain period
of time. Individual grants will be dependent on the assessment of performance
against a range of financial and non-financial targets set at the beginning of
the financial year.
On the grant of any award, the Board may specify that dividend equivalents
apply to the deferred award. A dividend equivalent is a right to receive
payment on the later of the vesting date and the exercise date. The payment is
equivalent to the dividends that would have been paid during the deferral
period on the number of shares in relation to which the award vests. The Board
shall specify in the award certificate whether the dividend equivalent shall
be paid in cash or additional shares, and whether the calculation of the
dividend equivalent should assume that dividends paid on the shares were
reinvested in further shares.
Senior Manager Incentive Plan (SMIP)
The SMIP is a performance share plan that involves the award of deferred
nominal cost options to participants conditional on the achievement of
specified performance targets and continuous employment over a certain period
of time. Individual grants will be dependent on the assessment of performance
against a range of financial and non-financial targets set at the beginning of
the financial year.
Nil Cost Options plan (NCO)
The NCO plan is a discretionary scheme in which the Board grants options to
employees to obtain ordinary shares at nil cost. Options granted under the NCO
plan can be exercised between the third and tenth anniversary after the date
of grant and are usually forfeited if the employee leaves the Group before the
option expires. The expense for the share-based payments under the NCO plan is
recognised over the respective vesting period of these options.
CSR initiative
A CSR initiative was introduced in December 2019 with the intention of giving
an additional contribution to charity through the donation of share options
should a number of stretching targets be met by the Group. The awards made
were equity-settled awards and involved the grant of market value options to
the AJ Bell Trust conditional on the achievement of diluted earnings per share
(DEPS) targets for the financial years 2022, 2023 and 2024 (Performance
Period).
The exercise of each tranche was conditional upon the DEPS having increased in
relation to the 7.47 pence DEPS for the year ended 30 September 2019, by more
than:
· 90% for September 2022;
· 115% for September 2023; and
· 140% for 30 September 2024.
These were considered to be the lower DEPS targets. The upper DEPS target for
each performance period was 10% above the lower DEPS target.
The percentage of shares granted that vested in each performance period was
determined as follows:
· if actual DEPS was below the lower DEPS target, the vesting
percentage was equal to zero;
· if actual DEPS was above the upper DEPS target, the vesting
percentage was equal to 100%; and
· if actual DEPS was between the lower and upper target, then the
vesting percentage was determined by linear interpolation on a straight-line
basis and rounded down to the nearest 10%.
As no service was being provided by the AJ Bell Trust, all conditions involved
in the arrangement were considered to be non-vesting conditions. Non-vesting
conditions should be taken into account when estimating the fair value of the
equity instrument granted. The fair value has been estimated using the Monte
Carlo simulation model.
Touch Incentive Scheme (TIS)
The TIS is a performance plan introduced in FY25 in which the Board grants
options to employees to obtain ordinary shares at nil cost. The TIS is
exclusively available for individuals working on the development of AJ Bell
Touch. The development roadmap is split into several features, with options
being awarded to members of the scheme at the commencement of each feature.
The expense for share-based payments under TIS is recognised over the
respective period of each award.
Earn-out arrangement
The acquisition of Adalpha gave rise to an earn-out arrangement whereby share
awards are made on the completion of a number of operational and financial
milestones, relating to AUA targets and the development of a simplified
proposition for financial advisers. The awards are equity settled and vest in
several tranches in line with the agreed milestones.
Under the terms of the acquisition agreement, eligible employees are entitled
to share awards conditional upon the successful completion of certain
performance milestones and their continued employment with the Group during
the vesting period. There is no exercise price attached to the share award.
The fair value of the earn-out arrangement is estimated as at the date of
grant calculated by reference to the quantum of the earn-out payment for each
performance milestone and an estimated time to proposition completion,
discounted to net present value. The performance conditions included within
the arrangement are not considered market conditions and therefore the
expected vesting is reviewed at each reporting date.
Movements during the year
The tables below summarise the outstanding options for each share-based
payment scheme.
2025 2024
CSOP Weighted Average Weighted Average
Number Exercise Price £ Number Exercise Price £
Outstanding at the beginning of the year 1,854,895 2.88 182,075 3.91
Granted during the year 306,207 4.17 1,753,272 2.80
Forfeited during the year (99,894) 2.99 (80,452) 3.42
Exercised during the year (47,973) 3.65 - -
Outstanding at the end of the year 2,013,235 3.05 1,854,895 2.88
Exercisable at the end of the year 84,612 3.96 61,677 4.13
The lowest exercise price for share options outstanding at the end of the
period was 275p (2024: 275p) and the highest exercise price was 444p (2024:
434p). The weighted average remaining contractual life of share options
outstanding at the end of the period was 8.1 years (2024: 8.9 years).
2025 2024
EIP Weighted Average Weighted Average
Number Exercise Price £ Number Exercise Price £
Outstanding at the beginning of the year 2,281,094 0.000125 1,675,192 0.000125
Granted during the year 851,172* 0.000125 1,533,866 0.000125
Exercised during the year (460,490) 0.000125 (509,268) 0.000125
Lapsed during the year (485,163) 0.000125 (418,696) 0.000125
Outstanding at the end of the year 2,186,613 0.000125 2,281,094 0.000125
Exercisable at the end of the year 532,762 0.000125 269,809 0.000125
* During the year dividend equivalents of 14,010 were accrued on the FY24
deferred award and are included within this total.
The weighted average remaining contractual life of EIP shares outstanding at
the end of the period was 8.2 years (2024: 8.6 years).
2025 2024
SMIP Weighted Average Weighted Average
Number Exercise Price £ Exercise Price £
Number
Outstanding at the beginning of the year 49,951 0.000125 3,999 0.000125
Granted during the year 48,349 0.000125 52,376 0.000125
Forfeited during the year (9,710) 0.000125 (6,424) 0.000125
Lapsed during the year 88,590 0.000125 49,951 0.000125
Outstanding at the end of the year 1,541 0.000125 - -
Exercisable at the end of the year 49,951 0.000125 3,999 0.000125
The weighted average remaining contractual life of SMIP shares outstanding at
the end of the period was 8.7 years (2024: 9.2 years).
2025 2024
NCO Weighted Average Weighted Average
Number Exercise Price £ Exercise Price £
Number
Outstanding at the beginning of the year 74,460 - - -
Granted during the year 118,207 - 74,460 -
Forfeited during the year (15,794) - - -
Lapsed during the year (15,939) - - -
Outstanding at the end of the year 160,934 - 74,460 -
Exercisable at the end of the year - - - -
The weighted average remaining contractual life of Nil Cost Options
outstanding at the end of the period was 9.0 years (2024: 9.2 years).
2025 2024
CSR initiative Weighted Average Weighted Average
Number Exercise Price £ Number Exercise Price £
Outstanding at the beginning of the year 1,330,008 4.01 1,662,510 4.01
Forfeited during the year - - - 4.01
Outstanding at the end of the year 1,330,008 4.01 1,330,008 4.01
Exercisable at the end of the year 1,330,008 4.01 1,330,008 4.01
The weighted average remaining contractual life of CSR options outstanding at
the end of the period was 4.2 years (2024: 5.2 years).
2025
TIS Weighted Average
Number Exercise Price £
Outstanding at the beginning of the year - -
Granted during the year 65,928
Exercised during the year (32,269) -
Outstanding at the end of the year 33,659 -
Exercisable at the end of the year 7,293 -
The weighted average remaining contractual life of TIS options outstanding at
the end of the period was 9.1 years.
Weighted average share price of options exercised.
The weighted average share price of all options exercised during the year was
£4.76 (2024: £2.86).
Measurement
The fair value of equity-settled share options granted is estimated as at the
date of grant using the Black-Scholes model, taking into account the terms
upon which the options and awards were granted.
The inputs into the Black-Scholes model and assumptions used in the
calculations are as follows:
CSOP
Grant date 16/01/2025 22/01/2025
Number of shares under option 299,450 6,757
Fair value of share option from generally accepted business model (£) 1.01 1.09
Share price (£) 4.29 4.58
Exercise price of an option (£) 4.16 4.44
Expected volatility 33.63% 33.73%
Expected dividend yield 2.91% 2.73%
Risk-free interest rate 4.21% 4.18%
Expected option life to exercise (months) 36 36
EIP
Grant date 31/01/2025 31/01/2025
Number of shares under option 626,802 210,360
Fair value of share option from generally accepted business model (£) 4.48 4.48
Share price (£) 4.48 4.48
Exercise price of an option (£) 0.000125 0.000125
Expected volatility 33.79% 33.79%
Expected dividend yield 0.00% 0.00%
Risk-free interest rate 4.03% 4.03%
Expected option life to exercise (months) 36 48
SMIP
Grant date 10/12/2024 16/01/2025
Number of shares under option 47,689 660
Fair value of share option from generally accepted business model (£) 4.32 3.93
Share price (£) 4.68 4.29
Exercise price of an option (£) 0.000125 0.000125
Expected volatility 33.20% 33.26%
Expected dividend yield 2.67% 2.91%
Risk-free interest rate 4.04% 4.13%
Expected option life to exercise (months) 36 36
NCO
Grant date 10/12/2024 16/01/2025 16/04/2025
Number of shares under option 67,088 36,058 15,061
Fair value of share option from generally accepted business model (£) 4.34 3.93 3.82
Share price (£) 4.70 4.29 4.18
Exercise price of an option (£) - - -
Expected volatility 33.20% 33.63% 34.07%
Expected dividend yield 2.66% 2.91% 2.99%
Risk-free interest rate 4.04% 4.21% 3.93%
Expected option life to exercise (months) 36 36 36
TIS
Grant date 30/10/2024 30/10/2024 31/10/2024 31/10/2024
Number of shares under option 13,131 8,749 26,431 17,617
Fair value of share option from generally accepted business model (£) 4.60 4.38 4.39 4.17
Share price (£) 4.61 4.61 4.47 4.47
Exercise price of an option (£) - - - -
Expected volatility 33.02% 33.02% 33.15% 33.15%
Expected dividend yield 2.49% 2.49% 2.57% 2.57%
Risk-free interest rate 4.28% 4.28% 4.28% 4.28%
Expected option life to exercise (months) 1 24 8 32
Expected volatility is estimated by considering historic average share price
volatility at the grant date.
The expected life of the options is based on the minimum period between the
grant of the option, the earliest possible exercise date and an analysis of
the historical exercise data that is not necessarily indicative of exercise
patterns that may occur. The expected volatility reflects the assumption that
historical volatility is indicative of future trends, which may also not
necessarily be the case.
During the year, the Group recognised a total share-based payment expense of
£4,100,000 (2024: £1,502,000) and £74,000 of capitalised share-based
payment expense (2024: reversed capitalised amount of £935,000) within the
statement of financial position.
The reversal in FY24 was due to the lapse of previously issued equity
instruments under the earn-out arrangement. The costs of these instruments had
been recognised over the vesting period, but, as they have now lapsed, the
previously recognised costs have been reversed.
25 Financial instruments and risk management
The Group's activities expose it to a variety of financial instrument risks;
market risk (including interest rate and foreign exchange), credit risk and
liquidity risk. Information is presented below regarding the exposure to each
of these risks, including the procedures for measuring and managing them.
Financial instruments include both financial assets and financial liabilities.
Financial assets principally comprise trade and other receivables and cash and
cash equivalents. Financial liabilities comprise trade and other payables and
lease liabilities. The Group does not have any derivative financial
instruments.
Risk management objectives
The Group has identified the financial, business and operational risks arising
from its activities and has established risk controls, including policies and
procedures, to manage these items in accordance with its defined risk
appetite. The Board of Directors has overall responsibility for establishing
and overseeing the Group's risk management framework and risk appetite.
The Group's financial risk management policies are intended to ensure that
risks are identified, evaluated and subject to ongoing monitoring and
mitigation (where appropriate). These policies contribute to the broader
control framework and robust risk culture within the business.
The Group regularly reviews its financial risk management policies and control
systems to reflect changes in the business, counterparties, markets and range
of financial instruments that it uses.
The Finance & Treasury Committee has principal responsibility for
monitoring exposure to the risks associated with cash and cash equivalents.
Policies and procedures are in place to ensure the management and monitoring
of each type of risk. The primary objective of the Group's Treasury Policy
Statements is to manage short-term liquidity requirements whilst maintaining
an appropriate level of exposure to other financial risks in accordance with
the Group's risk appetite.
Material accounting policies
Details of the material accounting policies, including the criteria for
recognition, the basis of measurement and the basis on which income and
expenses are recognised, in respect of each financial asset and financial
liability, are disclosed within note 2 to the consolidated financial
statements.
Categories of financial instrument
The financial assets and liabilities of the Group are detailed below:
2025 2024
Amortised cost Financial liabilities Carrying value Amortised cost Financial liabilities Carrying value
£000 £000 £000 £000 £000 £000
Financial assets
Trade receivables 1,478 - 1,478 3,409 - 3,409
Accrued income 35,711 - 35,711 37,327 - 37,327
Other receivables 21,783 - 21,783 10,997 - 10,997
Cash and cash equivalents 188,192 - 188,192 196,651 - 196,651
247,164 - 247,164 248,384 - 248,384
Financial liabilities
Trade and other payables - 57,730 57,730 - 55,169 55,169
Lease liabilities - 12,058 12,058 - 13,177 13,177
- 69,788 69,788 - 68,346 68,346
The carrying amount of all financial assets and liabilities is approximate to
their fair value due to their short-term nature.
Market risk
Interest rate
risk
The Group holds interest-bearing assets in the form of cash and cash deposits.
Cash at bank earns interest at floating rates based on daily bank deposit
rates. Term deposits can also be made for varying periods depending on the
immediate cash requirements of the Group, and interest is earned at the
respective fixed-term rate. Based on the cash balances shown in the Group's
statement of financial position at the reporting date, if interest rates were
to move by 25bps it would change profit before tax by approximately:
2025 2024
£000 £000
+ 25 bps (0.25%) 460 418
- 25 bps (0.25%) (460) (418)
As at the year end the Group had no external borrowings and therefore was not
exposed to a material interest rate risk on borrowings.
The Group retains a proportion of the interest income generated from the
pooling of certain uninvested customer cash balances (UCCBs) and as a result,
the Group revenue has an indirect exposure to interest rate risk. A breakdown
of the average AUA balance during the year and the proportion which was held
as UCCBs is set out in the table below:
2025 2024
Average AUA Average AUA
(£bn) % cash(1) (£bn) % cash(1)
Advised 58.1 3.3% 52.9 3.4%
D2C 34.6 11.5% 26.9 12.0%
Non-platform 5.5 2.6% 5.5 3.0%
(1) UCCBs exclude customer cash balances: (i) held in the Cash Savings Hub;
(ii) placed directly in notice accounts and on fixed-term deposits by the
customer with the deposit taker of their choice; (iii) uninvested cash held
with third-party investment partners.
The UCCBs are held with a panel of banks and are placed in a range of
fixed-term, notice and call deposit accounts with due regard for counterparty
credit risk, capacity risk, concentration risk and liquidity risk
requirements.
The retained proportion of the interest income generated from the pooling and
treasury management of UCCBs is variable dependent on rates paid by panel
banks and the interest rate paid to customers. The rate earned on customer
cash held in SIPPs, ISAs and General Investment / Dealing Accounts varies due
to the different regulations and factors that need to be considered when
placing the cash in fixed-term deposit accounts. The weighted average rate
calculated on the proportion of interest income retained on UCCBs held during
the period was 2.26% (FY24: 2.33%).
The impact of a 50bps increase or decrease in UK base interest rates on the
Group's revenue has been calculated and shown below. This has been modelled on
a historical basis for each year separately assuming that the UK base rate was
50bps higher or lower for the year.
2025 2024
£000 £000
+ 50 bps (0.50%) - -
- 50 bps (0.50%) - -
In FY24 and FY25, movements in the UK base interest rate would not have
materially impacted the retained interest income earned by the Group, as any
increases or decreases to the UK base interest rate when it is at higher
levels would be passed to customers in the form of higher or lower payaway
rates respectively.
Customer cash balances are not a financial asset of the Group and so are not
included in the statement of financial position.
Market movement sensitivity
The Group's custody fees are derived from the market value of the underlying
investments held by the retail customer in their account, based on product
type, mix and portfolio size which are charged on an ad valorem basis. As a
result, the Group has an indirect exposure to market risks, as the value of
the underlying customers' assets may rise or fall. The impact of a 10%
increase or reduction in the value of the customers' underlying assets subject
to the custody fees on the Group's revenue has been calculated and shown
below. This has been modelled on a historical basis for each year separately
assuming that the value of the customers' assets were 10% higher or lower than
the actual position at the time.
2025 2024
£000 £000
+ 10% higher 9,451 7,861
- 10% lower (9,451) (7,861)
Foreign exchange risk
The Group is not exposed to significant foreign exchange translation or
transaction risk as the Group's activities are primarily within the UK.
Foreign exchange risk is therefore not considered material.
Credit risk
The Group's exposure to credit risk, which is the risk that a counterparty
will be unable to pay amounts in full when due, arises principally from its
cash balances held with banks and trade and other receivables.
Trade receivables are presented net of expected credit losses within the
statement of financial position. The Group applies the IFRS 9 Financial
Instruments simplified approach to measuring expected credit losses which uses
a lifetime expected loss allowance for all trade receivables. To measure the
expected credit losses, trade receivables have been grouped based on shared
credit risk characteristics and number of days past due. Details of those
trade receivables that are past due are shown within note 19.
Accrued income and other receivables are excluded from the expected credit
loss calculation as these balances have no material credit risk. Accrued
income predominantly relates to interest income due from regulated financial
institutions and other receivables relate to balances with stock exchange
member firms, other counter parties and unsettled client receivables, some of
which have been taken from the client account and are in transit, and others
where there is a contractual right to sell down customer assets if funds are
not available. These receivables are short-term in nature and do not present
any material credit risk.
The Group has implemented procedures that require appropriate credit or
alternative checks on potential customers before business is undertaken. This
minimises credit risk in this area.
The credit and concentration risk on liquid funds, cash and cash equivalents
is limited as deposits are held across a number of major banks. The Directors
continue to monitor the strength of the banks used by the Group. The principal
banks currently used by the Group are Bank of Scotland plc, Barclays Bank plc,
Lloyds Bank plc, Lloyds Bank Corporate Markets plc, HSBC Bank plc, HSBC UK
Bank plc, NatWest Markets plc, Santander UK plc, Clearstream Banking SA and
Qatar National Bank (Q.P.S.C). Bank of Scotland plc, the Group's principal
banker, is substantial and is 100% owned by Lloyds Banking Group plc. All
these banks currently have long-term credit ratings of at least A+ (Fitch).
Where the services of other banks are used, the Group follows a rigorous due
diligence process prior to selection. This results in the Group retaining the
ability to further mitigate the counterparty risk on its own behalf and that
of its customers.
The Group has no significant concentration of credit risk as exposure is
spread over a large number of counterparties and customers. The maximum
exposure to credit risk is represented by the carrying amount of each
financial asset at the reporting date. In relation to dealing services, the
Group operates as agent on behalf of its underlying customers and in
accordance with London Stock Exchange Rules.
Any settlement risk during the period between trade date and the ultimate
settlement date is substantially mitigated as a result of the Group's agency
status, its settlement terms and the delivery versus payment mechanism whereby
if a counterparty fails to make payment, the securities would not be delivered
to the counterparty. Therefore, any risk exposure is to an adverse movement in
market prices between the time of trade and settlement. Conversely, if a
counterparty fails to deliver securities, no payment would be made.
There has been no material change to the Group's exposure to credit risk
during the year.
Liquidity risk
This is the risk that the Group may be unable to meet its liabilities as and
when they fall due. These liabilities arise from the day-to-day activities of
the Group and from its obligations to customers. The Group is a highly
cash-generative business and maintains sufficient cash and standby banking
facilities to fund its foreseeable trading requirements.
There has been no change to the Group's exposure to liquidity risk or the
manner in which it manages and measures the risk during the year.
The following table shows the undiscounted cash flows relating to
non-derivative financial liabilities of the Group based upon the remaining
period to the contractual maturity date at the end of the reporting period.
Due within 1 year 1 to 5 After 5 Total
£000 years years £000
£000 £000
2025
Trade and other payables 57,730 - - 57,730
Lease liabilities 3,004 9,975 1,544 14,523
60,734 9,975 1,544 72,253
2024
Trade and other payables 55,169 - - 55,169
Lease liabilities 2,363 10,572 3,603 16,538
57,532 10,572 3,603 71,707
Capital management
The Group's objectives in managing capital are to:
· safeguard the Group's ability to continue as a going concern so
that it can continue to provide returns for shareholders, security for our
customers and benefits for other stakeholders;
· maintain a strong capital base to support the development of its
business; and
· comply with regulatory requirements at all times.
The capital structure of the Group consists of share capital, share premium
and retained earnings. As at the reporting date the Group had capital of
£217,452,000 (2024: £203,990,000).
As part of the Group's capital allocation framework, capital generated from
the business is both reinvested in the business to generate future growth and
returned to shareholders principally in the form of dividends. We review our
capital position annually and will consider returning any surplus capital to
shareholders through a share buyback or special dividend, in accordance with
the Capital Allocation Policy. The capital adequacy of the business is
monitored on an ongoing basis and as part of the purpose strategy and planning
by the Board. It is also reviewed before any distributions are made to
shareholders to ensure it does not fall below the agreed surplus as outlined
in the Group's Capital Management Policy. The liquidity of the business is
monitored by management on a daily basis to ensure sufficient funding exists
to meet the Group's liabilities as they fall due. The Group is highly
cash-generative and maintains sufficient cash and standby banking facilities
to fund its foreseeable trading requirements.
The Group conducts an annual Internal Capital and Risk Assessment (ICARA)
process, as required by FCA regulation. As part of the ICARA process, the
Group determines the minimum level of capital and liquid resources that it is
required to hold at all times.
The amount of resources held by the Group are reviewed and monitored against
these minimum requirements on an ongoing basis; and the minimum requirements
are considered when making key business decisions. Our current financial
resources, regulatory capital and liquidity requirements can be found in the
Chief Financial Officer's review.
The Group maintained a surplus of regulatory capital and liquid resources
throughout the year. The disclosures required under MIFIDPRU 8 of the
Investment Firms Prudential Regime are available on the Group's website at
ajbell.co.uk.
26 Interests in unconsolidated structure entities
The Group manages a number of investment funds (open-ended investments) acting
as agent of the Authorised Corporate Director. The dominant factor in deciding
who controls these entities is the contractual arrangement in place between
the Authorised Corporate Director and the Group, rather than voting or similar
rights. As the Group directs the investing activities through its investment
management agreement with the Authorised Corporate Director, the investment
funds are deemed to be structured entities. The investment funds are not
consolidated into the Group's financial statements as the Group is judged to
act as an agent rather than having control under IFRS 10 Consolidated
Financial Statements.
The purpose of the investment funds is to invest capital received from
investors in a portfolio of assets in order to generate a return in the form
of capital appreciation, income from the assets, or both. The Group's interest
in the investment funds is in the form of management fees received for its
role as investment manager. These fees are variable depending on the value of
the assets under management.
The funds do not have any debt or borrowings and are financed through the
issue of units to investors.
The following table shows the details of unconsolidated structured entities in
which the Group has an interest at the reporting date:
Number of funds Net AUM of funds Annual management charge Management charge receivable at 30 September
Year Type £m £000 £000
2025 OEIC 9 4,947,4 6,933 606
2024 OEIC 9 3,698.1 5,035 496
The annual management charge of £6,933,000 relates to AJ Bell's allocated fee
as an investment manager of the fund and is included within recurring ad
valorem fees within revenue in the consolidated income statement.
The annual management charge receivable is included within trade and other
receivables in the consolidated statement of financial position.
The maximum exposure to loss relates to a reduction in future management fees
should the market value of the investment funds decrease.
27 Reconciliation of liabilities arising from financing activities
1 October 2023 Cashflows Change in lease liability 30 September 2024
2025 £000 £000 £000 £000
Lease liabilities 13,177 (1,654) 535 12,058
Total liabilities from financing activities 13,177 (1,654) 535 12,058
1 October 2022 Cashflows Change in lease liability 30 September 2023
2024 £000 £000 £000 £000
Lease liabilities 12,406 (1,583) 2,354 13,177
Total liabilities from financing activities 12,406 (1,583) 2,354 13,177
28 Related party transactions
Transactions between the Parent Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not disclosed.
Remuneration of key management personnel:
Key management personnel refers to the Board of Directors and the Executive
Committee.
The remuneration of individual directors is provided in the Directors'
Remuneration report.
The remuneration expense of key management personnel is as follows:
2025 2024
£000 £000
Short-term employee benefits (excluding NI) 3,787 3,273
Retirement benefits 200 90
Share-based payment 1,534 2,144
5,521 5,507
During the year there were no material transactions or balances between the
Group and its key management personnel or members of their close families,
other than noted below.
Transactions with Directors:
The remuneration of individual directors is provided in the Directors'
Remuneration report.
Dividends totalling £489,000 (2024: £550,000) were paid in the year in
respect of ordinary shares.
The aggregate gains made on the exercise of share options during the year were
£1,340,000 (2024: £897,000).
During the year, key management personnel and their families received
beneficial staff rates in relation to personal portfolios. The discount is not
material to AJ Bell.
Other related party transactions:
Charitable donations
During the year the Group made donations of £567,000 to the AJ Bell Futures
Foundation (2024: £439,000), a registered charity of which Mr P Birch, Mr C
Musson and Mrs E A Carrington are trustees.
EQ Property Services Limited
The Group is party to three leases with EQ Property Services Limited for
rental of the Head Office premises, 4 Exchange Quay, Salford Quays,
Manchester, M5 3EE. Mr M T Summersgill is a director and shareholder of both
AJ Bell plc and EQ Property Services Limited. The leases for the rental of the
building were entered into on 17 August 2016 for terms which expire on 30
September 2031, at an aggregate market rent of £2,009,000 (2024: £2,009,000
per annum).
At the reporting date, there is £502,000 outstanding, relating to rental
payments (2024: £54,000) with EQ Property Services Limited.
29 Assets held for sale
On 27 March 2025, the Group announced it had agreed to sell its Platinum SIPP
and SSAS business, part of its non-platform business, for a total
consideration of up to £25,000,000. The deal completed on the 3 November
2025. Further details are included in note 30.
The Platinum SIPP and SSAS business is not considered a major line of business
for the Group and therefore is classified as a disposal group and not a
discontinued operation under IFRS 5 Non-current Assets Held for Sale and
Discontinued Operations. Accordingly, assets held for sale have been disclosed
separately within the consolidated statement of financial position, the major
classes of assets are shown below.
2025
£000
Trade receivables 404
Accrued income 1,230
Assets held for sale 1,634
30 Subsequent events
Following the year end, the Group continued to purchase shares under the £25
million share buyback programme. 1,450,531 shares for a total cost of
£7,875,000 were purchased and subsequently cancelled between the end of the
reporting period and the date of issuing the annual report. The total shares
bought back through the programme so far is 11,247,579.
On 3 November 2025, the Group announced that it had completed the sale of the
Platinum SIPP and SSAS business, part of its non-platform business, to
InvestAcc Group Limited for a total consideration of up to £25 million.
The Group confirms that 3,400 customers and £3.3 billion of assets under
administration have transferred to InvestAcc from its non-platform business.
Initial consideration of £18.5 million upon completion has been settled; made
up of £17.5 million in cash and £1.0 million in new InvestAcc shares.
Deferred consideration of up to £6.5 million in cash will be payable in the
first half of 2026, subject to certain conditions
Completion of the transaction simplifies AJ Bell's business model and enables
management to focus on AJ Bell's core platform business in both the advised
and D2C markets.
Alternative performance measures
Within the Strategic report, various Alternative Performance Measures (APM)
are referred to. APMs are not defined by International Financial Reporting
Standards (IFRS) and should be considered together with the Group's IFRS
measurements of performance. We believe APMs assist in providing greater
insight into the underlying performance of the Group and enhance comparability
of information between reporting periods. The table below states those which
have been used, how they have been calculated and why they have been used.
APM Definition Why they have been used
Assets Under Administration (AUA) AUA is the value of assets for which AJ Bell provides either an AUA is a measurement of the growth of the business and is the primary driver
administrative, custodial, or transactional service. of ad valorem revenue, which is the largest component of Group revenue.
Assets Under Management (AUM) AUM is the value of assets for which AJ Bell provides a management service. AUM is a measurement of the growth of the business and is a driver of ad
valorem revenue.
Cost to serve per £AUA Total administrative expenses, excluding distribution costs, as a percentage Cost to serve per £AUA provides a measurement for measuring effectiveness of
of the average AUA in the period. scale as the business grows.
Profit before tax (PBT) margin PBT margin is calculated as the net profit generated during the year expressed PBT margin provides a simple measurement to facilitate comparison of our
as a percentage of the total revenue for the year. performance with our competitors.
Return on assets Return on assets is calculated as net profit generated during the year Return on assets is a measurement of how the business uses assets to generate
expressed as a percentage of the total net assets. profit.
Revenue margin (Revenue per £AUA) Revenue margin is the total revenue generated during the year expressed as a Revenue margin provides a simple measurement to facilitate comparison of our
percentage of the average AUA in the year. charges with our competitors.
Total net flows Represents AUA transfers-in, subscriptions, contributions and tax relief less Total net flows is a measurement of the growth of the business, representing
AUA transfers-out, cash withdrawals, benefits and tax payments changes in AUA that are derived from new and existing customers.
Glossary
AGM Annual General Meeting
AJBI AJ Bell Investments
BAYE Buy as you earn
BPS Basis points
CGU Cash Generating Unit
CODM Chief Operating Decision Maker
CSOP Company Share Option Plan
CSR Corporate Social Responsibility
D2C Direct to Consumer
DEPS Diluted Earnings Per Share
EIP Executive Incentive Plan
EPS Earnings Per Share
ESG Environmental, Social and Governance
EVF Employee Voice Forum
ExCo Executive Committee (formerly EMB)
FCA Financial Conduct Authority
FRS Financial Reporting Standards
FX Foreign Exchange
IAS International Accounting Standards
ICARA Internal Capital and Risk Assessment
ICO Information Commissioner's Office
IFRIC International Financial Reporting Interpretations Committee
IFRS International Financial Reporting Standards
IHT Inheritance tax
ISA Individual Savings Account
KOS Key Operating System
MiFID Markets in Financial Instruments Directive
MIFIDPRU Prudential Sourcebook for MiFID Investment Firms
MPS Managed Portfolio Service
NCO Nil Cost Options
OEIC Open-Ended Investment Company
PBT Profit Before Tax
PLC Public Limited Company
RCSA Risk and Control Self-Assessment
SIPP Self-Invested Personal Pension
SMIP Senior Manager Incentive Plan
Definitions
Ad valorem According to value
Adalpha AJ Bell Touch Limited and its wholly-owned subsidiaries
Customer retention rate The customer retention rate is the average number of funded platform customers
during the financial year that remain funded at the year end
Lifetime value The total amount of revenue a business expects to generate over the lifetime
of a customer
Listing rules Regulations subject to the oversight of the FCA applicable to companies listed
on a UK stock exchange
Own shares Shares held by the Group to satisfy future incentive plans
Recurring ad valorem revenue Includes custody fees, retained interest income and investment management fees
Recurring fixed revenue Includes recurring pension administration fees and media revenue
Revenue per £ AUA Reflects our revenue margin and represents revenue as a percentage of the
average AUA in the year. Average AUA is calculated as the average of the
opening and closing AUA in each quarter averaged for the year
Transactional revenue Includes dealing fees and pension scheme activity fees
UK Corporate Governance Code A code which sets out standards for best boardroom practice with a focus on
Board leadership and effectiveness, remuneration, accountability and relations
with shareholders
Company information
Company number
04503206
Company Secretary
Kina Sinclair
Registered office
4 Exchange Quay
Salford Quays
Manchester
M5 3EE
Auditor
PricewaterhouseCoopers LLP
1 Hardman Square
Manchester
M3 3EB
Banker
Bank of Scotland plc
The Mound
Edinburgh
EH1 1YZ
1 (#_ftnref1) For further detail of the calculation of the cost to serve per
£AUA, see Alternative Performance Measures.
2 (#_ftnref2) For further detail on the calculation of the consolidated
revenue margin, see Alternative Performance Measures.
3 (#_ftnref3) For further detail on the calculation of the return on assets,
see Alternative Performance Measures.
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