AJ Bell plc (LON:AJB), one of the UK’s largest investment platforms, today issued a trading update in respect of the three months ended 31 March 2020.
Performance overview
Total customer numbers increased to 262,179, up 22% over the last 12 months and 9% in the quarter, with total net inflows up 30% compared to prior year at £1.3 billion (2019: £1.0 billion).
Total assets under administration (AUA) increased by 1% over the last year, closing at £48.3 billion. AUA fell by 12% in the quarter due to adverse market and other movements. The FTSE All-share was down 26% over the same period.
AJ Bell’s customer growth and strong net inflows during the quarter were driven by the platform business:
- Platform customer numbers increased organically by 20,872, a record quarter for AJ Bell
- Total platform customers closed at 248,074, up 23% year-on-year and 9% in the quarter
o Advised customers of 103,974, up 11% over the last year and 4% in the quarter
o D2C customers of 144,100, up 34% over the last year and 13% in the quarter
- Platform underlying net inflows, representing organic growth in the quarter, increased by 75% over the prior year to £1.4 billion (2019: £0.8 billion)
o Underlying net inflows of £0.7 billion on each of the Advised and D2C platforms (2019: £0.4 billion on both Advised and D2C platforms)
- Platform AUA closed at £42.0 billion, up 3% over the last year and down 11% in the quarter
Andy Bell, Chief Executive Officer at AJ Bell, commented:
“This quarter was without doubt one of the most dramatic we’ve witnessed. We had to move quickly to keep our people safe from COVID-19 and comply with the Government lockdown. I’m pleased that we were able to do that effectively whilst remaining open for business as usual during a very busy tax year end period. I’d like to thank our staff for the flexibility and dedication they have shown to ensure our customers have been able to access and manage their investments as usual during the lockdown.
“This resilience is reflected in our new business figures which are very strong compared to last year. Our platform delivered encouraging organic growth in both customers and net inflows as we continued to support advisers and customers throughout this unprecedented situation.
“The COVID-19 crisis continues to have a devastating impact on people’s lives and the economic outlook remains uncertain. We have confirmed that we are not furloughing any staff or claiming benefits from any of the Government’s financial support schemes which should be preserved for those companies that need them most. We have also launched the AJ Bell Wage War on COVID Fund under the umbrella of the AJ Bell Trust, a UK registered charity, which will benefit charities and causes supporting the COVID-19 efforts. In addition to a £50,000 donation from the AJ Bell Trust, I will be donating my April, May and June wages into the fund and other board directors, senior management and staff have made similar pledges.”
