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(Alliance News) - AJ Bell on Thursday raised its interim dividend by more than 20%, as it expressed confidence in its long-term outlook amid an even bigger jump in profit.
The Manchester, England-based retail investment platform operator said pretax profit jumped 47% to GBP61.4 million in the six months to March 31 from GBP41.9 million a year prior.
Revenue climbed 27% to GBP131.3 million from GBP103.6 million. Notably, investment income surged to GBP2.9 million from GBP801,000.
Administrative costs increased by 17% to GBP72.3 million from GBP62.0 million.
AJ Bell declared an interim dividend of 4.25 pence per share, up 21% from 3.50p a year prior.
Chief Executive Officer Michael Summersgill said: "The macroeconomic environment improved during the period, with UK inflation levels falling and global asset values increasing."
AJ Bell has GBP80.3 billion in assets under administration as at March 31, up 13% from GBP70.9 billion at October 1 and 17% higher than GBP68.6 billion a year prior.
Noting that the platform market is benefiting from structural growth drivers, CEO Summersgill said: "There is a clear and well-understood need for individuals to take control of their long-term finances and investment platforms provide an excellent solution. This societal need has been at the heart of the structural growth in the platform market for many years and remains as relevant today as it has ever been.
Referring to the UK general election called for July 4, Summersgill added: "Whilst political change always causes some uncertainty, we remain confident that the long-term growth opportunity in the UK platform market will remain intact under any government."
AJ Bell shares rose 11% to 402.00 pence each on Thursday morning in London.
By Tom Budszus, Alliance News slot editor
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