REG - AJ Bell PLC - Year-end Trading Update
17/10/2024 07:00
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RNS Number : 4827I AJ Bell PLC 17 October 2024
17 October 2024
AJ Bell plc
Year-end trading update
AJ Bell plc ("AJ Bell" or the "Company"), one of the UK's largest investment
platforms, today issues a trading update in respect of its financial year
ended 30 September 2024.
Performance overview
Platform business
· Customer numbers increased by 66,000 to close at 542,000, up 14% in the year,
as AJ Bell's dual-channel platform continued to deliver strong growth in both
advised and D2C customers
o Total advised customers increased by 12,000 to close at 171,000, up 8% in
the year
o Total D2C customers increased by 54,000 to close at 371,000, up 17% in the
year
· Record assets under administration ("AUA") of £86.5 billion, up 22% in the
year
· Gross and net inflows across the platform were significantly higher than prior
year, driven by the continued investment in AJ Bell's brand and propositions
alongside improved retail investor confidence compared to the prior year
o Gross inflows in the year of £13.1 billion, up 41% versus the prior year
(FY23: £9.3 billion)
o Net inflows in the year of £6.1 billion, up 45% versus the prior year
(FY23: £4.2 billion)
· Favourable market movements of £9.5 billion, equating to 13% of opening AUA
(FY23: £2.6 billion)
AJ Bell Investments
· AJ Bell's investment solutions continued to attract strong flows in both the
advised and D2C markets, with net inflows in the year of £1.5 billion (FY23:
£1.6 billion)
· Assets under management ("AUM") reached a record £6.8 billion, up 45% in the
year (FY23: £4.7 billion)
Michael Summersgill, Chief Executive Officer at AJ Bell, commented:
"I am pleased to report on another excellent year in which we have delivered
impressive growth in customers and assets under administration. Platform
customer numbers increased by 14% to close at 542,000 while platform AUA was
up 22% to £86.5 billion, both new records for AJ Bell.
"Our strategy is centred on our dual-channel platform which serves both the
advised and D2C platform markets using a single technology platform and single
operating model. This maximises our growth opportunity within the platform
market, whilst being highly efficient to operate. Platform net inflows of over
£6 billion demonstrates the benefit of serving both markets, while our
efficient model drives strong profitability, enabling continual reinvestment
in the business to support our long-term growth ambitions.
"Our investments business continued to perform strongly in both the advised
and D2C markets, with £1.5 billion of net inflows helping to drive assets
under management up to £6.8 billion, 45% higher than a year ago.
"We continue to advance discussions around the creation of a supportive
legislative environment for long-term investing through simplification of the
ISA system and long-term pension tax stability. Pensions are the primary
retirement savings vehicle in the UK and customers are unsurprisingly
sensitive to changes in their tax treatment. Amidst increased press coverage
ahead of the upcoming Budget, we have seen a noticeable change in both
customer contributions to pensions and tax-free cash withdrawals. Whilst these
behavioural changes do not have a material impact on AJ Bell's business
performance, they represent significant decisions for individual customers. We
have therefore made representations to the Treasury calling for a commitment
to a pension tax lock in the Budget, guaranteeing stability in key pension tax
legislation for at least this parliament.
"In FY24 we have enhanced our propositions, improved our brand awareness and
lowered the cost of investing for our customers whilst maintaining our
industry-leading service levels. This has helped to drive our strong
performance this year, but more importantly it provides a strong foundation
for our future growth prospects. Whilst the upcoming Budget has introduced
unhelpful uncertainty, we remain positive about the outlook for AJ Bell and
the platform market more broadly. We look forward to announcing the annual
results for what has been another successful year for AJ Bell."
Notice of annual results
AJ Bell expects to announce its full-year results for the year ended 30
September 2024 on 5 December 2024.
Year ended Advised Platform D2C Platform Total Platform Non-platform
30 September 2024 Total
Opening customers (k) 159 317 476 15 491
Closing customers (k) 171 371 542 15 557
AUA and AUM (£billion)
Opening AUA 48.2 22.7 70.9 5.2 76.1
Inflows((1)) 6.5 6.6 13.1 0.3 13.4
Outflows((2)) (4.3) (2.7) (7.0) (0.3) (7.3)
Net inflows 2.2 3.9 6.1 - 6.1
Market and other movements((3)) 5.7 3.8 9.5 0.5 10.0
Closing AUA 56.1 30.4 86.5 5.7 92.2
Closing AUM 3.5 1.9 5.4((4)) 1.4((5)) 6.8
Year ended Advised Platform D2C Platform Total Platform Non-platform
30 September 2023 Total
Opening customers (k) 146 280 426 15 441
Closing customers (k) 159 317 476 15 491
AUA and AUM (£billion)
Opening AUA 44.8 19.3 64.1 5.1 69.2
Inflows((1)) 5.0 4.3 9.3 0.2 9.5
Outflows((2)) (3.1) (2.0) (5.1) (0.3) (5.4)
Net inflows/(outflows) 1.9 2.3 4.2 (0.1) 4.1
Market and other movements((3)) 1.5 1.1 2.6 0.2 2.8
Closing AUA 48.2 22.7 70.9 5.2 76.1
Closing AUM 2.5 1.3 3.8((4)) 0.9((5)) 4.7
( )
((1) Transfers-in, subscriptions, contributions and tax relief)
((2) Transfers-out, cash withdrawals, benefits and tax payments)
((3) Total investment returns and revaluations, net of charges and taxes)
((4) Platform AUA which is held in AJ Bell's Funds or Managed Portfolio
Service)
((5) Assets which are held in AJ Bell's Funds or Managed Portfolio Service via
third-party platforms)
( )
Contacts:
AJ Bell
· Shaun Yates, Investor Relations Director +44 (0) 7522 235 898
· Mike Glenister, Head of PR +44 (0) 7719 554 575
Historical customer numbers, AUA and AUM by quarter
Advised Platform Qtr to 30 Qtr to 31 Qtr to 31 Qtr to 30 Qtr to 30
September December March June September
2023 2023 2024 2024 2024
Customers (k) 159 161 165 168 171
AUA and AUM (£billion)
Opening AUA 47.8 48.2 51.0 53.4 54.9
Inflows((1)) 1.2 1.5 1.7 1.7 1.6
Outflows((2)) (0.8) (0.9) (1.1) (1.2) (1.1)
Net inflows 0.4 0.6 0.6 0.5 0.5
Market and other movements((3))
- 2.2 1.8 1.0 0.7
Closing AUA 48.2 51.0 53.4 54.9 56.1
Closing AUM((4)) 2.5 2.8 3.2 3.4 3.5
D2C Platform Qtr to 30 Qtr to 31 Qtr to 31 Qtr to 30 Qtr to 30
September December March June September
2023 2023 2024 2024 2024
Customers (k) 317 323 338 360 371
AUA and AUM (£billion)
Opening AUA 22.0 22.7 25.2 26.9 28.8
Inflows((1)) 1.3 1.2 1.7 2.0 1.7
Outflows((2)) (0.6) (0.5) (0.7) (0.8) (0.7)
Net inflows 0.7 0.7 1.0 1.2 1.0
Market and other movements((3))
- 1.8 0.7 0.7 0.6
Closing AUA 22.7 25.2 26.9 28.8 30.4
Closing AUM((4)) 1.3 1.4 1.5 1.7 1.9
Non-platform Qtr to 30 Qtr to 31 Qtr to 31 Qtr to 30 Qtr to 30
September December March June September
2023 2023 2024 2024 2024
Customers (k) 15 15 15 15 15
AUA and AUM (£billion)
Opening AUA 5.3 5.2 5.4 5.5 5.6
Inflows((1)) 0.1 - 0.1 0.1 0.1
Outflows((2)) (0.2) - (0.1) (0.1) (0.1)
Net outflows (0.1) - - - -
Market and other movements((3))
- 0.2 0.1 0.1 0.1
Closing AUA 5.2 5.4 5.5 5.6 5.7
Closing AUM((5)) 0.9 1.0 1.1 1.2 1.4
Total closing AUA 76.1 81.6 85.8 89.3 92.2
Total closing AUM 4.7 5.2 5.8 6.3 6.8
( )
((1) Transfers-in, subscriptions, contributions and tax relief)
((2) Transfers-out, cash withdrawals, benefits and tax payments)
((3) Total investment returns and revaluations, net of charges and taxes)
((4) Platform AUA which is held in AJ Bell's Funds or Managed Portfolio
Service)
((5) Assets which are held in AJ Bell's Funds or Managed Portfolio Service via
third-party platforms)
About AJ Bell:
Established in 1995, AJ Bell is one of the largest investment platforms in the
UK, operating at scale in both the advised and direct-to-consumer markets.
Our purpose is to help people invest by providing them with easy access to
Pensions, ISAs and General investment accounts, great customer service and
competitive charges.
Our two core platform propositions are AJ Bell in the D2C market and AJ Bell
Investcentre in the advised market, which both provide access to a broad
investment range including shares and other instruments traded on the major
stock exchanges around the world, as well as all mainstream collective
investments available in the UK and our own range of AJ Bell funds.
In the D2C market we also offer AJ Bell Dodl, a low-cost investment app with a
simplified investment range that makes it easier for customers to choose
investments and buy and sell them without paying any commission.
For D2C cash savers we offer a Cash savings hub which provides access to a
range of competitive savings accounts to help people manage their long-term
cash deposits.
AJ Bell is headquartered in Manchester, UK, with offices in London and
Bristol.
Forward-looking statements
This announcement contains 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 this announcement 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 this announcement.
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