A record £2.3bn was taken out of pensions pots under Pension Freedoms rules in the second quarter of 2018, HMRC figures have revealed.

Platform and SIPP provider AJ Bell has today announced a profits surge of 24% in its interim half-year results, its most profitable ever it says.

The firm reported “strong growth” for the six months ended 31 March, which, as well as increasing profits to record levels, included a 12% rise in customer numbers from 164,557 to 183,482 and a 5% increase in assets under management from £39.8bn to £41.8bn .

Elsewhere in the report highlights included:
·       New business growth with net platform inflows of £3.5bn, up 17% (H1 2017: £3.0bn)
·       Customer retention of 95%
·       Revenue increased 16% to £42.9m (H1 2017: £37.0m)
·       An interim dividend payment of 14p per share, a 10% increase compared to the interim dividend last year (H1 2017: 12.75p)

In the period the company launched two new income-focused multi-asset portfolios within its Managed Portfolio Service (MPS) for financial advisers, as well as a new Lifetime ISA.

Preparations for a listing on the London Stock Exchange “later in 2018 or early 2019” were said to be “progressing well.”

Andy Bell, chief executive of AJ Bell, said: “These are the most profitable interim results in our history and are a great endorsement of our strategy and market position. 

“The UK retail investment and savings market continues to display strong growth and investment platforms are central to this.”

“We are well placed to continue our growth trajectory and are progressing well with our plans for a premium listing on the London Stock Exchange later this year or early 2019.”

SIPP and platform provider AJ Bell has been forced to pay £500 to a customer to compensate for loss of interest.

AJ Bell says its 172,000 customers will be offered ‘exclusive’ access to an Initial Public Offering of shares in the business.

Advisers’ calls for an income option in AJ Bell’s Managed Portfolio Service has prompted the company to launch four new portfolios.

AJ Bell, the rapidly growing platform and Sipp provider, had declined to comment on reports it is planning to float on the stock market.

Sipp provider AJ Bell has announced a 40% cut to management fees on its Managed Portfolio Service.

The removal of an amendment making pensions auto guidance compulsory under new legislation has been welcomed by a Sipp provider.

SSASs have been in for a bit of a battering over the last year or so. Tainted by misuse from scammers, efforts to control the rogues have had serious implications for legitimate businesses trying to set up and run these small occupational schemes.

Platform and SIPP provider AJ Bell saw pre-tax profit tax increase by 29% to £21.7 million for 2017 as the company’s growth strategy in recent years paid dividends.