(Alliance News) - AJ Bell PLC shares rose on Thursday after the company reported higher interim revenue, increased assets, and lifted its interim payout.
Shares were up 5.4% at 268.98 pence each on Thursday midday in London.
The Manchester-based provider of investment services and platforms reported a 17% fall in pretax profit to GBP26.1 million in the six months ended March 31, from GBP31.6 million in the same period a year before.
The company blamed this on administrative expenses that jumped 17% to GBP49.0 million from GBP41.9 million, largely due to higher distribution costs.
"We expect the rate of increase in distribution costs to moderate over the course of the full year as planned, following the higher activity undertaken in the first half in the lead-up to the tax year end," AJ Bell said.
Meanwhile, revenue climbed 2.2% year-on-year to GBP75.5 million from GBP73.9 million.
The company attributed this to organic growth in customers and assets under administration.
Assets under administration closed at GBP74.1 billion at March 31, up 1.8% from GBP72.8 billion at September 30.
AJ declared an interim dividend of 2.78 pence, reflecting a 13% increase from 2.46p.
Looking ahead, it expects higher revenue and profit margins in the second half of the year and financial 2023.
Further, it expects its full-year pretax profit to be "at least" in line with consensus market expectations.
"The long-term structural drivers of growth in the UK investment platform market remain strong with around two-thirds of our estimated GBP3 trillion target market not yet on a platform. We continue to see customers moving onto investment platforms to benefit from increased flexibility and lower costs and we are well positioned to attract an increasing market share with our leading propositions and established brand in both the advised and direct-to-consumer segments," Chief Executive Andy Bell said.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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AJ Bell (AJB)
