(Alliance News) - AJ Bell PLC on Thursday said it recorded "strong" year-on-year growth in assets under administration and customer numbers in its second quarter, despite a challenging market backdrop.
The Manchester-based provider of retail investment platforms said total assets under administration closed at GBP74.1 billion at quarter-end on March 31, reflecting a 14% increase compared to the same quarter a year prior.
However, total assets under administration were down 2% quarter-on-quarter, due to "adverse market and other movements" of 4%, AJ Bell said.
The company noted weakened investor sentiment in the recent quarter and said that the market backdrop has been challenging.
"The comparative quarter last year was exceptionally strong as consumers invested excess cash savings built up during Covid lockdowns, whereas this year they have been faced with increased market uncertainty caused by factors including inflationary pressure on the cost of living and the war in Ukraine."
Nonetheless, customer numbers increased 5% in the quarter to 418,309. Compared to the same quarter a year before customer numbers were up 21%, it added.
Platform customer retention also remained high at 95%, AJ Bell said.
The company said that total net inflows amounted to GBP1.5 billion.
"Our dual-channel platform, serving the growing advised and direct to customer platform markets, attracted over 20,000 new customers and significant net inflows during the second quarter despite weakened investor sentiment. In the last year we have grown platform customer numbers by 21% and platform assets under administration by 15%, demonstrating the strength of our business model across different market conditions."
Shares in AJ Bell were down 5.2% at 275.95 pence each late Thursday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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AJ Bell (AJB)
