TIDMAJB
RNS Number : 7977T
AJ Bell PLC
23 July 2020
23 July 2020
AJ Bell plc
Q3 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 the three months ended 30 June 2020.
Performance overview
Total customer numbers increased to 282,619, up 26% over the
last 12 months and 8% in the quarter, with total net inflows in the
quarter of GBP1.2 billion (2019: GBP1.2 billion).
Total assets under administration (AUA) increased to GBP54.3
billion, up 7% over the last 12 months and 12% in the quarter. The
FTSE All-Share increased by 10% over the quarter.
AJ Bell's customer growth and strong net inflows during the
quarter were driven by the platform business:
-- Platform customer numbers increased organically by 20,370
-- Total platform customers closed at 268,444, up 27% year-on-year
and 8% in the quarter
o Advised customers of 106,335, up 11% over the last year
and 2% in the quarter
o D2C customers of 162,109, up 41% over the last year
and 12% in the quarter
-- Platform underlying net inflows, representing organic
growth in the quarter, increased by 30% over the prior
year to GBP1.3 billion (2019: GBP1.0 billion)
o Advised underlying net inflows of GBP0.5 billion, in
line with the prior year
o D2C underlying net inflows of GBP0.8 billion, up 60%
on the prior year
-- Platform AUA closed at GBP47.7 billion, up 10% over the
last year and 14% in the quarter
Customer dealing activity and financial outlook
As reported in the Company's interim results for the six months
ended 31 March 2020, stock market volatility drove record levels of
dealing activity by D2C customers in the first half of the
financial year, generating increased transactional revenue.
Although trading volumes have now fallen from the peak levels seen
earlier in the COVID-19 crisis, the number of trades placed by D2C
customers in the quarter more than doubled compared to the same
quarter in 2019, exceeding management's expectations.
As a result, management currently expects profit before tax for
the year ending 30 September 2020 to be at least GBP2.5 million
above current market consensus(1) .
Customer dealing activity is expected to normalise in Q4 of the
current financial year and therefore management reiterates its
previous guidance in respect of the year ending 30 September
2021.
(1) As at 20 July 2020, Company compiled consensus for profit
before tax was GBP43.4 million. Further details are available at
ajbell.co.uk/investor-relations/analyst-consensus
Launch of AJ Bell Cash savings hub
The Company is preparing to move into the GBP1.5 trillion(2)
retail cash savings market with the launch of the AJ Bell Cash
savings hub via its D2C platform.
As part of the Company's commitment to make it easy for people
to invest, the AJ Bell Cash savings hub will enable customers to
access a range of competitive notice and fixed-term savings
accounts from a range of UK authorised banks. They will be able to
apply for multiple accounts quickly and easily, with no paperwork,
and manage their cash savings via one online account that sits
alongside their existing AJ Bell Youinvest accounts. It will also
give them peace of mind that the savings accounts they have within
the Cash savings hub will be covered by the Financial Services
Compensation Scheme (FSCS), up to the limit of GBP85,000 per
bank.
AJ Bell will begin testing the Cash savings hub with a small
group of existing customers before the end of July and expects to
launch it to all AJ Bell Youinvest customers by the end of the
calendar year.
(2) Source: Bank of England UK households' deposits statistics,
May 2020
Andy Bell, Chief Executive Officer at AJ Bell, commented:
"Markets have rebounded from the lows seen in the previous
quarter but remain volatile and this has helped increase the value
of assets under administration and customer trading volumes. Our
focus throughout the COVID-19 crisis has been on ensuring we are
here for customers and advisers when they need us and this has
translated into strong net inflows onto the platform and continued
strong organic growth in new customers.
"With interest rates so low, it is increasingly important that
people regularly check the rates they are earning on their cash
savings and consider switching accounts if they want to ensure they
get a better return, but most people don't have the time or
inclination to do that. Our new AJ Bell Cash savings hub will
enable customers to manage their cash savings more effectively
without having to go through lengthy, paper-based application
processes each time they open a new account, whilst ensuring they
benefit from FSCS protection.
"The quality and commitment of our staff has enabled us to
operate all services on a business as usual basis throughout the
coronavirus pandemic. This operational resilience demonstrates the
strength of our business model which has been appreciated by many
customers and advisers. The long-term growth drivers of the
platform market remain undiminished and we are well positioned
within the market to benefit."
Three months ended Advised D2C Platform Total Non-platform Total
30 June 2020 Platform GBPbillion Platform GBPbillion GBPbillion
GBPbillion GBPbillion
Opening AUA 31.4 10.6 42.0 6.3 48.3
----------------------------------- ------------ ------------- ------------ ------------- -------------
Underlying inflows(1) 0.8 1.0 1.8 - 1.8
Outflows(2) (0.3) (0.2) (0.5) (0.3) (0.8)
----------------------------------- ------------ ------------- ------------ ------------- -------------
Underlying net inflows/(outflows) 0.5 0.8 1.3 (0.3) 1.0
----------------------------------- ------------ ------------- ------------ ------------- -------------
DB inflows(3) 0.2 - 0.2 - 0.2
Total net inflows/(outflows) 0.7 0.8 1.5 (0.3) 1.2
----------------------------------- ------------ ------------- ------------ ------------- -------------
Market and other movements(4) 3.1 1.1 4.2 0.6 4.8
----------------------------------- ------------ ------------- ------------ ------------- -------------
Closing AUA 35.2 12.5 47.7 6.6 54.3
----------------------------------- ------------ ------------- ------------ ------------- -------------
Opening customers 103,974 144,100 248,074 14,105 262,179
Closing customers 106,335 162,109 268,444 14,175 282,619
Three months ended Advised D2C Platform Total Non-platform Total
30 June 2019 Platform GBPbillion Platform GBPbillion GBPbillion
GBPbillion GBPbillion
Opening AUA 30.9 9.7 40.6 7.1 47.7
----------------------------------- ------------ ------------- ------------ ------------- -------------
Underlying inflows(1) 0.9 0.6 1.5 - 1.5
Outflows(2) (0.4) (0.1) (0.5) - (0.5)
----------------------------------- ------------ ------------- ------------ ------------- -------------
Underlying net inflows 0.5 0.5 1.0 - 1.0
----------------------------------- ------------ ------------- ------------ ------------- -------------
DB inflows(3) 0.2 - 0.2 - 0.2
Total net inflows 0.7 0.5 1.2 - 1.2
----------------------------------- ------------ ------------- ------------ ------------- -------------
Market and other movements(4) 1.2 0.4 1.6 0.2 1.8
----------------------------------- ------------ ------------- ------------ ------------- -------------
Closing AUA 32.8 10.6 43.4 7.3 50.7
----------------------------------- ------------ ------------- ------------ ------------- -------------
Opening customers 93,496 107,426 200,922 13,931 214,853
Closing customers 96,083 114,682 210,765 13,879 224,644
(1) Includes transfers-in, subscriptions, contributions and tax
relief, excluding inflows from DB pension transfers and bulk
migrations
(2) Includes (transfers-out, cash withdrawals, benefits and tax
payments)
(3) Inflows to the advised platform from defined benefit pension
transfers
(4) Includes (charges, taxes deducted, investment returns and
revaluations)
Contacts:
AJ Bell
-- Shaun Yates, Head of Investor Relations +44 (0) 7522 235
898
-- Charlie Musson, Head of PR +44 (0) 7834 499 554
Historical AUA and customer numbers by quarter
Advised Platform Qtr to Qtr to Qtr to Qtr to Qtr to
30 30 31 31 30
AUA (GBPbillion) June September December March June
2019 2019 2019 2020 2020
Opening AUA 30.9 32.8 33.8 35.2 31.4
----------------------- ------- ----------- ---------- -------- --------
Underlying inflows(1) 0.9 0.9 0.8 1.2 0.8
Outflows(2) (0.4) (0.4) (0.4) (0.5) (0.3)
----------------------- ------- ----------- ---------- -------- --------
Underlying net
inflows 0.5 0.5 0.4 0.7 0.5
----------------------- ------- ----------- ---------- -------- --------
DB inflows(3) 0.2 0.2 0.2 0.2 0.2
Total net inflows 0.7 0.7 0.6 0.9 0.7
----------------------- ------- ----------- ---------- -------- --------
Market and other
movements(4) 1.2 0.3 0.8 (4.7) 3.1
Closing AUA 32.8 33.8 35.2 31.4 35.2
------- ----------- ---------- --------
Customers 96,083 98,056 100,170 103,974 106,335
D2C Platform Qtr to Qtr to Qtr to Qtr to Qtr to
30 30 31 31 30
AUA (GBPbillion) June September December March June
2019 2019 2019 2020 2020
Opening AUA 9.7 10.6 11.1 12.0 10.6
------------------- -------- ----------- ---------- -------- --------
Inflows(1) 0.6 0.5 0.5 0.9 1.0
Outflows(2) (0.1) (0.2) (0.2) (0.2) (0.2)
------------------- -------- ----------- ---------- -------- --------
Net inflows 0.5 0.3 0.3 0.7 0.8
------------------- -------- ----------- ---------- -------- --------
Market and other
movements(4) 0.4 0.2 0.6 (2.1) 1.1
------------------- -------- ----------- ---------- -------- --------
Closing AUA 10.6 11.1 12.0 10.6 12.5
------------------- -------- ----------- ---------- -------- --------
Customers 114,682 120,113 127,032 144,100 162,109
Non-platform Qtr to Qtr to Qtr to Qtr to Qtr to
30 30 31 31 30
AUA (GBPbillion) June September December March June
2019 2019 2019 2020 2020
Opening AUA 7.1 7.3 7.4 7.5 6.3
------------------- ------- ----------- ---------- -------- -------
Inflows(1) - - - - -
Outflows(2) - (0.1) (0.1) (0.3) (0.3)
------------------- ------- ----------- ---------- -------- -------
Net outflows - (0.1) (0.1) (0.3) (0.3)
------------------- ------- ----------- ---------- -------- -------
Market and other
movements(4) 0.2 0.2 0.2 (0.9) 0.6
------------------- ------- ----------- ---------- -------- -------
Closing AUA 7.3 7.4 7.5 6.3 6.6
------------------- ------- ----------- ---------- -------- -------
Customers 13,879 13,897 13,950 14,105 14,175
Total closing
AUA 50.7 52.3 54.7 48.3 54.3
------------------- ------- ----------- ---------- -------- -------
(1) Includes transfers-in, subscriptions, contributions and tax
relief, excluding inflows from DB pension transfers and bulk
migrations
(2) Includes (transfers-out, cash withdrawals, benefits and tax
payments)
(3) Inflows to the advised platform from defined benefit pension
transfers
(4) Includes (charges, taxes deducted, investment returns and
revaluations)
About AJ Bell:
Established in 1995, AJ Bell is one of the largest investment
platforms in the UK.
We operate in both the advised and direct to consumer segments
of the platform market and our flagship platform propositions are
AJ Bell Investcentre (adviser) and AJ Bell Youinvest
(direct-to-consumer).
We offer SIPPs, ISAs and General Investment / Dealing Accounts.
We aim to make it easy for our customers to invest by providing
them with additional support in the form of various investment
solutions and information. We offer 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.
AJ Bell is headquartered in Manchester, UK.
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.
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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