AJ Bell 

AJ Bell profits soar ahead of IPO

AJ Bell profits soar ahead of IPO

AJ Bell has posted double digit revenue growth ahead of the platform's initial public offering later this year.

The platform posted pre-tax profits of £28.4m for the year to the end of September, up 31 per cent on the previous year, and increased revenue by 19 per cent, to £89.7m.

In an announcement accompanying its 2018 results, AJ Bell also stated if it decides to proceed with the float, at least 25 per cent of the shares will be floated on the London Stock Exchange, with customers able to access the shares at the IPO stage via the platform.

Typically, investors would have to wait until an institutional investor who was able to buy at the IPO stage becomes a seller, or find a broker, and pay a broker fee, to be able to buy the shares at the time they float on the market.

The company said it intends to publish the prospectus for the IPO on November 27.

Andy Bell, chief executive of AJ Bell, said: "We have a history of profitability, cash generation and dividends and this is once again demonstrated in our latest full year results.

"Revenue was up 19 per cent and profit before tax increased 31 per cent, with interim and final dividends totalling £14.6m, an increase of 25 per cent on the previous year.

"Our intention to float the business on the London Stock Exchange reflects both our historic achievements and our belief in how much more we can achieve. A listing offers us further reputational and commercial benefits that will support our growth plans."

The company reported a profit before tax of £28.4m, with revenues of £89.7m, and a 25 per cent increase in assets under administration to £38.6bn, while the total number of customers on the platform increased by 30 per cent to 183,213.  

david.thorpe@ft.com

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