AJ Bell (LON: AJB) shares surged throughout Thursday’s session, closing up 12.1% at 598.66p after the investment platform reported a standout set of interim results and lifted its full-year guidance.
The stock touched an intraday high of 619p, driven by an underlying pre-tax profit of £79m that beat consensus expectations of £70.6m by 12%.
Revenue for the six months to 31 March 2026 rose 19% to £183m, while underlying pre-tax profit climbed 15% to £79m. Underlying diluted earnings per share came in 18% higher at 14.61p.
The platform added 79,000 new customers during the half, a 12% rise, taking the total customer base to 723,000. Platform assets under administration ended the period at £108.7bn, up 5%, while net inflows surged 27% year-on-year to a record £4.2bn. Assets under management in the investment business also moved higher, rising 10% to £9.8bn, though net inflows in that division eased slightly to £0.6bn from £0.7bn a year earlier.
AJ Bell is raising its full-year guidance after stronger-than-expected transaction and ad valorem income, and now expects profit before tax margin to be above 40%.
Chief Executive Michael Summersgill described the performance as “fantastic,” achieved in what he called a “chaotic environment” of market volatility and UK policy uncertainty.
AJ Bell returned £77.3m to shareholders in the first half, comprising £38.3m deployed from its previously announced £50m buyback programme alongside the £39m final dividend from the prior financial year. The board also announced a fresh £15m buyback to run alongside the remainder of the existing programme, while lifting the interim dividend 11% to 5p per share.
Summersgill said AJ Bell is deploying artificial intelligence at scale in operations, describing the technology as increasingly important in attracting customers in the direct market, while cautioning that it must work alongside human relationships in financial services.
On the policy front, the CEO warned that proposed ISA reform will create further complexity, and that pension tax uncertainty has already driven excess withdrawals – more than £1bn of pension cash left the platform ahead of recent fiscal events.
UBS and Jefferies both carry buy ratings on the stock, with price targets of 630p and 625p respectively. The consensus among the eight brokerages covering AJB sits at “hold,” with an average 12-month target of 554.38p – a figure today’s surge has already blown through.