Commencement of Share Buyback Programme

AJ Bell PLC

05 December 2024

 

5 December 2024

AJ Bell plc

Commencement of Share Buyback Programme

AJ Bell plc ("AJ Bell" or "Company") is pleased to announce the commencement of a share buyback programme (the "Buyback Programme") to return up to £30 million of capital to shareholders.

Rationale for the Buyback Programme

The Buyback Programme reflects the Company's strong capital and liquidity position, as well as the Board's confidence in the long-term outlook for AJ Bell. The Buyback Programme is consistent with the Company's capital allocation framework, which was set out in its interim results for the six months ended 31 March 2024 and is as follows:

·	Financial strength Maintain an appropriate level of regulatory capital and liquidity
·	Organic investment Targeted investments to drive long-term business growth, whilst maintaining good cost discipline
·	Supporting local communities Commitment to donate 0.5% of profit before tax to the AJ Bell Futures Foundation annually
·	Ordinary dividend A regular, progressive ordinary dividend
·	Inorganic investment opportunities Consideration of potential bolt-on acquisitions to support our strategy
·	Additional capital returns Return of surplus capital not required for other priorities considered annually

AJ Bell has delivered excellent organic growth and record financial performance in the year ended 30 September 2024, whilst at the same time reducing fees for customers, investing in the platform with a focus on ease of use, and sustaining a multi-year strategy to increase brand awareness.

Backed by this record profitability and high cash generation, the Company has accumulated significant surplus capital above its regulatory requirements. As a result, in line with the commitment to a progressive ordinary dividend, the Board has proposed a final dividend of 8.25 pence, increasing the total ordinary dividend for the year by 16% to 12.50 pence, the 20^th consecutive year of ordinary dividend growth. The Buyback Programme reflects the Company's commitment to return surplus capital to shareholders, over and above a progressive ordinary dividend, when it is not required for other priorities.

The purpose of the Buyback Programme is to reduce the Company's share capital and it is expected that implementation of the Buyback Programme will increase earnings per share. Any shares purchased under the Buyback Programme will be cancelled.

Execution of the Buyback Programme

The Company was granted the general authority to undertake on-market share buybacks, up to 41,229,038 ordinary shares, at the Company's AGM on 30 January 2024. The Buyback Programme will be carried out under that authority.

The Company has entered into an arrangement with Jefferies International Limited ("Jefferies") to effect the Buyback Programme, which will commence immediately and is expected to end no later than 4 June 2025, subject to market conditions. Any purchases made under the Buyback Programme will be announced through the Regulatory News Service of the London Stock Exchange and the acquired shares will be cancelled. However, there is no guarantee that the Buyback Programme will be implemented in full or that any shares will be bought back by the Company.

The Buyback Programme will be effected in compliance with Market Abuse Regulation 596/2014 (as it forms part of UK law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (as amended)) ("UK MAR") and Chapter 12 of the Listing Rules.

Enquiries to:

AJ Bell
Shaun Yates, Investor Relations Director	[phone]

About AJ Bell:

Established in 1995, AJ Bell is one of the largest investment platforms in the UK, operating at scale in both the advised and direct-to-consumer markets.

Our purpose is to help people invest by providing them with easy access to Pensions, ISAs and General investment accounts, great customer service and competitive charges.

Our two core platform propositions are AJ Bell in the D2C market and AJ Bell Investcentre in the advised market, which both provide access to a broad investment range including shares and other instruments traded on the major stock exchanges around the world, as well as all mainstream collective investments available in the UK and our own range of AJ Bell funds.

In the D2C market we also offer AJ Bell Dodl, a low-cost investment app with a simplified investment range that makes it easier for customers to choose investments and buy and sell them without paying any commission.

For D2C cash savers we offer a Cash savings hub which provides access to a range of competitive savings accounts to help people manage their long-term cash deposits.

AJ Bell is headquartered in Manchester, UK, with offices in London and Bristol.

 

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