TIDMAJB

RNS Number : 1849N

AJ Bell PLC

19 January 2023

19 January 2023

AJ Bell plc

Q1 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 31 December 2022.

Performance overview

Platform business

 
      --   Customer numbers increased by 8,713 in the quarter to close 
            at 434,365, up 13% in the last year and 2% in the quarter 
              o Total advised customers of 148,636, up 13% in the last year 
               and 2% in the quarter 
               o Total D2C customers of 285,729, up 14% in the last year and 
               2% in the quarter 
      --   AUA closed at GBP66.3 billion, down 3% over the last year but 
            up 3% in the quarter 
      --   Robust gross and net inflows achieved during the quarter against 
            a continued challenging backdrop, with both the advised and 
            D2C channels contributing to the growth in AUA 
              o Gross inflows in the quarter of GBP1.9 billion (2021: GBP2.7 
               billion) 
               o Net inflows in the quarter of GBP0.8 billion (2021: GBP1.4 
               billion) 
      --   Favourable market movements contributed 2% to AUA growth in 
            the quarter as global equity markets recovered some of the 
            losses recorded in previous quarters 
 

AJ Bell Investments

 
      --   Assets under management ("AUM") increased to GBP3.4 billion, 
            up 62% over the last year and up 21% in the quarter 
      --   Record net inflows in the quarter of GBP443 million, 
            up 143% versus the comparative period last year (2021: 
            GBP182 million underlying net inflows) 
      --   Strong investment performance, with all of AJ Bell's 
            multi-asset growth funds delivering top quartile returns 
            versus their Investment Association sector average over 
            the last 3 years 
 

Michael Summersgill, Chief Executive Officer at AJ Bell, commented:

"I am pleased to announce a solid start to the financial year, with our platform continuing to attract new customers and assets across both the advised and direct-to-consumer markets. Whilst high inflation has inevitably squeezed household finances, we delivered GBP0.8 billion of net inflows to the platform during the quarter. This performance demonstrates the value of our dual-channel business model which enables us to capture customer and asset growth from across the whole platform market.

"Our fast-growing investment business performed very strongly in the quarter. Customers and advisers alike are attracted to our range of low-cost investment solutions which have delivered excellent returns for customers in difficult market conditions. This drove record net inflows of GBP443 million in the quarter, more than double the level achieved in the comparative quarter last year. Total assets under management passed through the GBP3 billion milestone in the quarter, closing 62% higher than a year ago at GBP3.4 billion.

"We have a long track record of delivering organic growth and market share gains in both the advised and direct-to-consumer markets. Over 50,000 new customers have been attracted to our platform over the past year and we are continuing to invest in the development of our customer proposition to make investing as easy as possible, whilst delivering great value for money.

"In our 2022 annual results in December, we set out plans to invest more in our brand to support our long-term growth strategy and we are delighted to have agreed a five-year partnership to sponsor the Great Run series, including the flagship Great North Run. We will also be launching a new multi-channel brand advertising campaign before the end of January.

"The tax year end is traditionally our busiest time of year and we are looking forward to helping customers and advisers make the most of the annual ISA and pension allowances before the 5 April deadline. We remain positive about the growth prospects for the investment platform market and are very well positioned to continue growing our market share."

 
                                    Advised   D2C Platform       Total   Non-platform 
  Three months ended               Platform                   Platform                    Total 
  31 December 2022 
 
 Opening customers                  145,371        280,281     425,652         14,937   440,589 
 Closing customers                  148,636        285,729     434,365         14,909   449,274 
 
 AUA and AUM (GBPbillion) 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 Opening AUA                           44.8           19.3        64.1            5.1      69.2 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 
 Inflows(1)                             1.2            0.7         1.9              -       1.9 
 Outflows(2)                          (0.7)          (0.4)       (1.1)          (0.1)     (1.2) 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 Net inflows/(outflows)                 0.5            0.3         0.8          (0.1)       0.7 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 
 Market and other movements(3)          0.7            0.7         1.4            0.2       1.6 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 Closing AUA                           46.0           20.3        66.3            5.2      71.5 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 
                                                                   3.0            0.4 
 Closing AUM                            1.9            1.1         (4)            (5)       3.4 
 
 
 Three months ended                 Advised   D2C Platform       Total   Non-platform 
  31 December 2021                 Platform                   Platform                    Total 
 
 Opening customers                  126,920        241,045     367,965         14,789   382,754 
 Closing customers                  131,610        251,664     383,274         14,792   398,066 
 
 AUA and AUM (GBPbillion) 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 Opening AUA                           45.8           19.5        65.3            7.5      72.8 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 
 Inflows(1)                             1.6            1.1         2.7            0.1       2.8 
 Outflows(2)                          (1.0)          (0.3)       (1.3)          (0.2)     (1.5) 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 Net inflows/(outflows)                 0.6            0.8         1.4          (0.1)       1.3 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 
 Market and other movements(3)          1.1            0.3         1.4            0.1       1.5 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 Closing AUA                           47.5           20.6        68.1            7.5      75.6 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 
                                                                   2.1 
 Closing AUM                            1.2            0.9         (4)              -       2.1 
 

(1) Transfers-in, subscriptions, contributions and tax relief

(2) T ransfers-out, cash withdrawals, benefits and tax payments

(3) Total i nvestment 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 
            Charlie Musson, Brand and PR 
      --     Director                          +44 (0) 7834 499 554 
 

Historical customer numbers, AUA and AUM by quarter

 
 Advised Platform       Qtr to    Qtr to    Qtr to       Qtr to      Qtr to 
                            31        31        30           30          31 
                      December     March      June    September    December 
                          2021      2022      2022         2022        2022 
 
 Customers             131,610   137,201   141,856      145,371     148,636 
 
 AUA and AUM 
  (GBPbillion) 
------------------  ----------  --------  --------  -----------  ---------- 
 Opening AUA              45.8      47.5      46.5         44.3        44.8 
------------------  ----------  --------  --------  -----------  ---------- 
 
 Inflows(1)                1.6       1.6       1.5          1.5         1.2 
 Outflows(2)             (1.0)     (0.7)     (0.6)        (0.6)       (0.7) 
------------------  ----------  --------  --------  -----------  ---------- 
 Net inflows               0.6       0.9       0.9          0.9         0.5 
------------------  ----------  --------  --------  -----------  ---------- 
 
 Market and other 
  movements(3)             1.1     (1.9)     (3.1)        (0.4)         0.7 
 Closing AUA              47.5      46.5      44.3         44.8        46.0 
                    ----------  --------  --------  ----------- 
 
 Closing AUM(4)            1.2       1.4       1.4          1.7         1.9 
 
 
 D2C Platform           Qtr to    Qtr to    Qtr to       Qtr to      Qtr to 
                            31        31        30           30          31 
                      December     March      June    September    December 
                          2021      2022      2022         2022        2022 
 
 Customers             251,664   266,182   275,647      280,281     285,729 
 
 AUA and AUM 
  (GBPbillion) 
------------------  ----------  --------  --------  -----------  ---------- 
 Opening AUA              19.5      20.6      20.4         19.2        19.3 
------------------  ----------  --------  --------  -----------  ---------- 
 
 Inflows(1)                1.1       1.1       1.1          0.6         0.7 
 Outflows(2)             (0.3)     (0.4)     (0.4)        (0.3)       (0.4) 
------------------  ----------  --------  --------  -----------  ---------- 
 Net inflows               0.8       0.7       0.7          0.3         0.3 
------------------  ----------  --------  --------  -----------  ---------- 
 
 Market and other 
  movements(3)             0.3     (0.9)     (1.9)        (0.2)         0.7 
------------------  ----------  --------  --------  -----------  ---------- 
 Closing AUA              20.6      20.4      19.2         19.3        20.3 
------------------  ----------  --------  --------  -----------  ---------- 
 
 Closing AUM(4)            0.9       0.9       1.0          1.0         1.1 
 
 
 Non-platform           Qtr to    Qtr to    Qtr to       Qtr to      Qtr to 
                            31        31        30           30          31 
                      December     March      June    September    December 
                          2021      2022      2022         2022        2022 
 
 Customers              14,792    14,926    14,947       14,937      14,909 
 
 AUA and AUM 
  (GBPbillion) 
------------------  ----------  --------  --------  -----------  ---------- 
 Opening AUA               7.5       7.5       7.2          5.2         5.1 
------------------  ----------  --------  --------  -----------  ---------- 
 
 Inflows(1)                0.1         -       0.1            -           - 
 Outflows(2)             (0.2)     (0.1)     (1.8)        (0.1)       (0.1) 
------------------  ----------  --------  --------  -----------  ---------- 
 Net outflows            (0.1)     (0.1)     (1.7)        (0.1)       (0.1) 
------------------  ----------  --------  --------  -----------  ---------- 
 
 Market and other 
  movements(3)             0.1     (0.2)     (0.3)            -         0.2 
------------------  ----------  --------  --------  -----------  ---------- 
 Closing AUA               7.5       7.2       5.2          5.1         5.2 
------------------  ----------  --------  --------  -----------  ---------- 
 
 Closing AUM(5)              -         -       0.1          0.1         0.4 
 
 Total closing 
  AUA                     75.6      74.1      68.7         69.2        71.5 
------------------  ----------  --------  --------  -----------  ---------- 
 
 Total closing 
  AUM                      2.1       2.3       2.5          2.8         3.4 
------------------  ----------  --------  --------  -----------  ---------- 
 

(1) Transfers-in, subscriptions, contributions and tax relief

(2) T ransfers-out, cash withdrawals, benefits and tax payments

(3) Total i nvestment 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 Dodl by AJ Bell, 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.

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTEAXFPFLEDEFA

(END) Dow Jones Newswires

January 19, 2023 02:00 ET (07:00 GMT)

Aj Bell (LSE:AJB)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Aj Bell Charts.
Aj Bell (LSE:AJB)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Aj Bell Charts.