UK's AJ Bell forecasts higher 2025 profit margin, shares hit record high

May 23 (Reuters) - British investment platform AJ Bell on Friday raised its 2025 pre-tax profit margin forecast after a surge in customer activity helped half-year profit rise 12%, sending shares to a record high.

Fluctuating tariff policies under U.S. President Donald Trump have heightened market volatility and global recession concerns, leading to increased customer activity for investment managers.

AJ Bell said it expects 2025 profit before tax margin to be over 42%, higher than the 40% it had forecast earlier, and said half-year transactional revenue rose 45.1% from a year ago.

Shares jumped more than 10% to 503.5 pence by 0730 GMT.

Analysts at Jefferies said in a note that they anticipate a positive market response and upward revisions to forecasts after "excellent" results.

"Market volatility or short-term drops do not tend to deter (retail investors)," CEO Michael Summersgill told Reuters in an interview following the company's results announcement.

"Instead, many see it as an opportunity - thinking, I'm investing for the next 20 years, so this could actually work in my favour," he said.

AJ Bell, which offers a broad range of financial services including asset management, added 50,000 customers at the end of the first half of the year.

The company also announced a 25 million pound ($33.68 million) share buyback and an interim dividend of 4.50 pence per share, 6% higher than last year.

AJ Bell