Bond.az -- AJ Bell raised its full-year profit guidance after the British investment platform posted strong interim results, with revenue and underlying earnings both growing at a double-digit pace.
Revenue for the six months to March 31, 2026 rose 19% to £183 million, while underlying profit before tax climbed 15% to £79 million. Underlying diluted earnings per share rose 18% to 14.61 pence.
The revenue margin expanded to 33.4 basis points from 32.4 basis points a year earlier, driven by higher recurring ad valorem and transactional revenues. The underlying PBT margin slipped slightly to 43.2% from 44.9%, reflecting increased investment in brand and propositions which the company said drove record business growth in the period.
"I am delighted to report an excellent set of first-half results. We delivered record customer growth, adding 79,000 customers in the period, alongside record net inflows of £4.2 billion," said AJ Bell CEO Michael Summersgill.
AJ Bell said it now expects full-year revenue margin, profit before tax and PBT margin to come in ahead of its previous guidance, with PBT margin now seen above 40%, up from a prior range of 39-40%.
Revenue margin guidance was raised by 0.5 basis points in Advised and 2.5 basis points in D2C, with non-platform revenue lifted by £1 million. Assets under administration guidance was also upgraded, reflecting £2.9 billion of market-driven gains in Advised and £2.4 billion in D2C.
On costs, technology spending growth is now expected at the bottom of the previously guided 20% range, while operations and support costs are seen rising 11% against prior guidance of 7-9%. Distribution costs are expected to increase 40%, up from 28-30%.
"This last point in particular shows AJB taking advantage of a helpful environment, and we would expect to see the benefit of that investment from 2027," Jefferies analysts said. "We are also supportive of higher tech spend to the extent that it keeps the platform up to date."
The company declared an interim dividend of 5.00 pence per share, up 11% on the prior year, and announced an additional buyback programme of up to £15 million on top of a previously announced £50 million programme, citing excellent financial performance and strong cash generation.
Total returns to shareholders in the period amounted to £77.3 million. AJ Bell pointed to an estimated £2.4 trillion held off platform in the UK as evidence of the structural growth opportunity ahead.
