Aj Bell Plc · LSE:AJB
Aj Bell — H1 2025 Earnings Presentation
34 slides from Aj Bell's earnings presentation, May 23, 2025
Slide 1: Interim results
Interim results For the six months ended 31 March 2025 Issued on 23 May 2025 Interim results for the six months ended 31 March 2025
Slide 2: We help people to invest
We help people to invest AJ Bell is one of the UK’s largest investment platforms ~£3 trillion We are investing To deliver long- TAM in 3 key areas term growth majority held off-platform, providing enabled by our scale, profitability and via our dual-channel platform, serving a significant growth opp
Slide 3: HY25 key messages
HY25 key messages Our dual-channel We are executing on Strong financial High cash generation platform once again our strategy. The performance, with our and healthy capital delivered strong success of our diversified revenue position supports organic growth, with investment in brand model delivering
Slide 4: Contents
Contents Business update 5 Appendices 29 Financial update 17 Glossary 32 Outlook 23 4 AJ Bell plc Interim results for the six months ended 31 March 2025
Slide 5: Business update
Business update 5 AJ Bell plc Interim results for the six months ended 31 March 2025
Slide 6: Key investment highlights
Key investment highlights An update on the seven pillars of the AJ Bell investment case Key investment highlight HY25 update • The long-term growth drivers remain strong, with an increasing need for individuals to take greater responsibility for their retirement savings Our market • We continue to e
Slide 7: Our market
Our market A significant long-term growth opportunity for the platform market A large addressable market Dual-channel model maximises our growth opportunity Net inflows vs peers 6 months ended 31 March 2025(3) ~£3tn • Total addressable market estimated Total addressable to be worth at least £3 trill
Slide 8: Our market: key themes in the UK platform market
Our market Key themes in the UK platform market ISA simplification Targeted support Pensions • Government is “looking at options” to • Many people who would benefit from • Firmly established as the primary vehicle for reform ISAs to “get the balance right” financial advice are unable to afford it, a
Slide 9: Our propositions
Our propositions An easy-to-use platform serving the advised and D2C markets A highly scalable platform business Cessation of non-platform business Advised D2C Wind down of non-platform AUA in progress, simplifying our business model and enabling management to focus on the Full-service core platform
Slide 10: Our propositions: executing on our strategy
Our propositions Executing on our strategy Delivering strong organic platform growth Supported by AJ Bell Investments Net new customers Net inflows • £0.7 billion of net inflows in HY25, driving AUM up 10% 51 3.3 to a record £7.5 billion +14% 2.9 +89% • Advisers increasingly attracted to our investm
Slide 11: Our propositions: benefiting from long-term growth investments
Our propositions We continue to benefit from the investments we are making to drive long-term growth Accelerating the pace of change A highly-trusted brand Low-cost provider 5-year change in technology headcount 2-year brand awareness(1) and cost to Package of price reductions and higher versus chan
Slide 12: Our propositions: driving continuous improvements
Our propositions Driving continuous improvements Advised D2C We are developing our advised propositions with a focus on: We continually develop our D2C propositions with a focus on • Efficiency: Enhancing platform automation to enable IFAs to ease of use maximise focus on their clients • We have und
Slide 13: A trusted brand supported by market-leading customer service
Our propositions A trusted-brand supported by market-leading customer service Strengthening the brand Excellent customer service delivery • Brand awareness is a crucial factor in a customer’s choice of • Our scalable platform has the capacity to manage growing investment platform demand. In the peri
Slide 14: Our customers: advised customer insights
Our customers Advised customer insights Customer profile Our advised customers have a strong pensions weighting Average age of Average portfolio of Retention rate of A large proportion of customer assets are held in SIPP accounts 56 £322k 93.0% 11% 9% 11% 10% 12% 10% (HY24: 56) (HY24: £324k) (HY24:
Slide 15: Our customers: D2C customer insights
Our customers D2C customer insights Customer profile We continue to attract long-term investors Average age of Average portfolio of Retention rate of Customer assets are mostly held in tax wrapped accounts 44 £80k 94.6% 20% 22% 23% (HY24: 44) (HY24: £80k) (HY24: 95.1%) 30% 29% 29% Gross inflows from
Slide 16: D2C customer insights: dealing activity trends
Our customers D2C customer insights Dealing activity trends Annualised deals Annualised FX deals • Following heightened activity between 2020 to 2021, per customer Deals per customer per customer dealing activity normalised and then later fell below 25 FY16-19 average deals per customer historical a
Slide 17: Financial update
Financial update 17 AJ Bell plc Interim results for the six months ended 31 March 2025
Slide 18: HY25 Financial highlights
HY25 Financial highlights HY25 HY24 +/- Revenue £153.2m £131.3m 17% • 17% increase in revenue to £153.2 million, primarily due to: ‒ Higher levels of D2C customer dealing activity, in particular FX, as customers responded to changing market dynamics Revenue margin 32.4bps 32.3bps 0.1bps ‒ Increased
Slide 19: Revenue analysis
Revenue analysis Revenue by proposition, nature of revenue streams and revenue margins HY24 HY25 (£m) (£m) +11% 68.2 A well-diversified revenue model 61.6 3.2 2.6 • Mix of fixed, ad valorem and transactional revenues enables us to deliver sustainable profits across different market conditions Advise
Slide 20: Costs analysis
We continue to have a disciplined focus on cost control and efficiency Costs analysis to maximise the resources available for investment in our strategic priorities Distribution +21% Administrative expenses increased by 21% as we delivered our 2.7 0.1 0.2 planned investments in our people, brand and
Slide 21: Capital position and shareholder returns
Capital position and shareholder returns Our highly cash generative and capital light model supports regular shareholder returns Regulatory capital position Shareholder returns £ million HY25 FY24 • Returned a total of £64.0 million to shareholders since year end Total shareholder funds 199.0 204.0
Slide 22: Capital allocation
Capital allocation A holistic approach that strikes a balance between capital returns and long-term value creation AJ Bell capital allocation framework HY25 outcomes Financial strength Significant capital surplus and cash balances of £175 million Maintain an appropriate level of regulatory capital a
Slide 23: Outlook
Outlook 23 AJ Bell plc Interim results for the six months ended 31 March 2025
Slide 24: Financial outlook – guidance
Financial outlook – guidance We increase full-year revenue margin guidance, reflecting higher expected levels of transactional revenue. The expected revenue increase more than offset the anticipated increase in costs, which reflects accelerated business investment to deliver long-term growth FY25 pr
Slide 25: Financial outlook
Financial outlook Heightened market volatility in April has been reflected in FY25 guidance High levels of customers engagement • D2C customer dealing activity spiked in response to the market D2C active deals(1) vs MSCI world index volatility caused by US tariffs between 2nd-15th April: Tariff-rela
Slide 26: Financial outlook – beyond FY25
Financial outlook – beyond FY25 Platform outlook beyond FY25 Impact of cessation of non-platform business Revenue margins – slight compression over time: Sale of Platinum SIPP & SSAS business • Pricing optionality – we will continue to look for opportunities • Expected to complete in the second half
Slide 27: Financial outlook – net interest income sensitivity
Financial outlook – net interest income sensitivity Impact of interest rate cuts Commentary Estimated revenue margin impact Impact of any future rate cuts will be gradual Base rate of: FY25 FY26 • Treasury management capability gives us time to react to No material No material interest rate changes
Slide 28: Outlook
Outlook Significant long-term growth opportunity in the UK platform market • Structural growth drivers of the platform market remain strong • £3 trillion addressable market, of which only one-third is currently held on platform • Government continues to support pensions and ISAs, but risk of additio
Slide 29: Appendices
Appendices 29 AJ Bell plc Interim results for the six months ended 31 March 2025
Slide 30: Appendix I: The seven pillars of AJ Bell's investment case
Appendix I The seven pillars of AJ Bell’s investment case Key investment highlight Description Our market A growing market within the UK retail savings and investment industry An award-winning platform operating in both advised and D2C market segments, Our propositions with in-house investment solut
Slide 31: Appendix II: Platform Customers, AUA and AUM
Appendix II Platform Customers, AUA and AUM HY25 HY24 Advised D2C Total Advised D2C Total Customers platform Platform Platform platform Platform Platform Opening customers 171,000 371,000 542,000 159,000 317,000 476,000 Net new customers 6,000 45,000 51,000 6,000 21,000 27,000 Closing customers 177,
Slide 32: Glossary
Glossary 32 AJ Bell plc Interim results for the six months ended 31 March 2025
Slide 33: Glossary
Glossary AUA Assets Under Administration AUM Assets Under Management BPS Basis Points D2C Direct to Consumer FCA Financial Conduct Authority FTE Full Time Employee FX Foreign Exchange FY25/FY26 Year Ended/Ending 30 September 2025/2026 GIA General Investment Account HY24/HY25 Six Months Ended 31 Marc
Slide 34: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in it.