AJ Bell PLC (LSE:AJB) shares hit another record as the wealth platform reported strong growth in profits, users and assets under administration in its latest financial year.
Bell also announced a share buyback worth £30 million alongside a 16% increase in the annual dividend as profits jumped 29% to £113.3 million on revenues 23% higher at £269 million.
Profit margins rose by almost two percentage points, which Bell said reflected the growth in numbers using the platform.
Michael Summersgill, chief executive said it has been an "excellent" year for the FTSE 250 group, with “our dual-channel platform delivering strong growth in both customers and AUA”.
Platform customers increased by 14% to 542,000, while platform AUA increased by 22% to £86.5 billion, he added driven by strong net inflows and favourable market movements.
AJ Bell’s own investment arm also saw big inflows across both the advised and consumer markets, with managed assets up 45% to £6.8 billion.
"Backed by our strong profitability and highly cash-generative business model, we have accumulated significant surplus capital above our regulatory requirements,” said Summersgill.
“We have today announced a record level of shareholder returns, reflecting the board's confidence in the long-term outlook for AJ Bell,” he said.
The dividend for the year rises by 16% to 12.50p.
Summersgill added while that Capital Gains and Inheritance Tax changes announced at the Budget will impact some customers, "the fundamental features of the pension and investment tax system remain unchanged".
“The Government now has an opportunity to galvanise the retail investment market through a long-term commitment to tax stability, allowing more people to invest for the future with certainty.
"Platforms offer an excellent solution for managing long-term finances, and we remain very well-positioned to capitalise on this growing demand,” he added.
Shares rose 2.7% to a new all-time high of 510p.