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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Financial Services

AJ Bell shares open 2% higher after guidance is nudged up

AJ Bell PLC (LSE:AJB) shares rose 2% after the company nudged up its forecasts for revenues and profit margins.

The update accompanied interim results which showed turnover rose 37% to £103.6mln in the six months to March 2023, giving pre-tax profits of £41.9mln, up from £26.1mln in the same period last year.

Assets under administration grew 7% to £68.6bn, despite a dip in cash inflow to the platform. Client numbers also climbed 7% to 455,008.

The firm's investment management division saw assets increase by 39% to £3.9bn, helped by a record £900mln inflow. Shareholders are to receive a 3.5p per share interim dividend, a 26% increase from the previous year.

The stock, down 11% in the year to date, opened at 319.4p, up 6.4p.

"AJ Bell trades at a premium to the rest of the listed investment platforms... We feel this is justified given the higher-than-sector average earnings growth, excellent track record of customer growth and low-cost platform," said City research house Liberum.

It repeated its 'buy' recommendation and 430p price target. Broker Shore Capital also reiterated its 'buy' stance.

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