Passive fund launch has been “well received” as profits jump 24 per cent, AJ Bell says
Platform and Sipp provider AJ Bell has said profits have increased by more than a quarter in the first half of its financial year.
Between October and March, AJ Bell said revenue increased by 24 per cent to £37m, driving a 27 per cent increase in pre-tax profit to £11.2m.
Assets under administration reached £36.3bn, up from £31.8bn, as new business inflows came in at £3.6bn.
The company pointed to growing demand for Sipps and drawdown as a continued driver of growth. It added that the launch of the first AJ Bell passive funds in February had been “well received” by the market.
AJ Bell chief executive Andy Bell says: “We know that profitability and financial stability have become a core focus for advisers when selecting platforms so we are pleased to be able to demonstrate strong momentum on that front. We continue to invest heavily in the platform and the functionality that supports advisers and customers. Our mantra of making it easy for people to invest means that everything we do has the needs of advisers and customers at its core.”
Bell is now worth £165m after launching the AJ Bell platform in 1995, according to the Sunday Times Rich List.
He is a vocal proponent of regulatory change including the return of cash rebates and greater regulatory guidance on the bulk transfer of clients to a new platform.