AJ Bell PLC Market Update -- COVID-19 and BOE measures (8266F)
March 11 2020 - 12:20PM
UK Regulatory
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RNS Number : 8266F
AJ Bell PLC
11 March 2020
11 March 2020
AJ Bell plc ("AJ Bell" or "Company")
Market update - COVID-19 and Bank of England measures
AJ Bell, one of the UK's largest trading platforms, today
updates the market on the impact of the recent COVID-19 related
falls in global stock markets and the Bank of England's
announcement of a temporary reduction in base rate by 50 bps to
0.25% and other related measures, on its trading performance.
At present, given the extent of current market uncertainty, it
is difficult to predict the exact impact of these events on trading
performance. This will largely depend upon the length of time for
which COVID-19 continues, stock markets remain at or below current
levels, base rate remains at 0.25% and the other related measures
remain in place.
In relation to the Company's current financial year and the
first half of the next financial year, which end on 30 September
2020 and 31 March 2021 respectively, the negative impact on revenue
and profit before tax of the reduction in base rate will be partly
mitigated by the maturity profile and type of existing fixed term
deposits and notice accounts utilised. In relation to the second
half of the financial year ending on 30 September 2021 and beyond,
the impact will depend upon the length of time for which the
reduction in base rate and the other measures put in place by the
Bank of England remain in place. The impact may also be mitigated
further by future management actions and influenced by related
changes in customer behaviours, such as the level of trading
activity and the extent to which customers hold cash balances.
The market movement and interest rate risk sensitivity analysis
previously disclosed for the year to 30 September 2020, which is
available on AJ Bell's website at
https://www.ajbell.co.uk/investor-relations , remains a valid basis
for calculating the financial impact on the business over the next
12 months. However, the sensitivity analysis does not extend beyond
that timeframe, so the financial impact on the business will then
be influenced by both the above mentioned factors and
mitigants.
For further information, please contact:
AJ Bell plc
Shaun Yates, Head of Investor Relations +44 (0) 752 223 5898
Charlie Musson, Head of PR +44 (0) 783 449 9554
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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