AJ Bell (AJB) H1 2025 Pre Recorded earnings summary

Executive summary

• Platform customers grew 9% to 593,000, with net inflows up 14% to £3.3bn and platform AUA rising 5% to £90.4bn.

• Revenue increased 17% year-over-year to £153.2m, and profit before tax rose 12% to £68.8m, with a margin of 44.9%.

• Interim dividend increased 6% to 4.50p per share; new £25m share buyback programme announced.

• Record D2C customer growth and brand awareness supported strong inflows.

• Sale of Platinum SIPP & SSAS business agreed for up to £25m, simplifying operations and focusing on core platform growth.

Financial highlights

• Revenue: £153.2m (up 17% year-over-year); PBT: £68.8m (up 12%); PBT margin: 44.9%.

• Diluted EPS up 11% to 12.36p; net cash from operations £53m; closing cash £175m.

• 84% of revenues are recurring, demonstrating resilience during market volatility.

• Interim dividend raised 6% to 4.50p per share; over £100m expected to be distributed to shareholders by year-end.

• Administrative expenses rose 21% due to investments in people, brand, and technology.

Outlook and guidance

• Full-year revenue and PBT expected to exceed previous guidance, with revenue margins for FY2025 expected to be higher.

• Profit before tax margin guidance raised to 42% or more, up from 40%.

• Additional profit expected from the disposal of the Platinum SIPP and SSAS business.

• Management plans to accelerate investment in brand, business growth, and technology.

• Long-term outlook: platform market remains structurally strong, with operational gearing supporting future margin expansion.