PENSIONS provider AJ Bell today chimed in with a bumper 48 per cent rise in annual profits and outlined plans for further growth during the coming year, including a recruitment drive at its Manchester headquarters.

The business, founded by chief executive Andy Bell in 1995, said pre-tax profits soared from £6.55m to £9.7m during the 12 months to September 30.

 Revenues climbed 52 per cent, from £16.15m to £24.53m following the acquisition of institutional stockbroking business Lawshare, based in Tunbridge Wells, and strong organic growth.

AJ Bell has benefited as more people switch from having their pensions tied up with insurance providers to administering them through intermediaries or independently. It has become the largest privately-owned provider of self-invested personal pensions, or SIPPs.

Expanded

The company now administers SIPPs for 32,477 clients, up 21 per cent on last year. Its overall pension assets under administration rose £522m to £5.54bn during the last financial year while stockbroking assets climbed £18m to £2.27bn.

Based on Chester Road, Old Trafford, AJ Bell's group employee numbers rose 30 per cent to 287 last year and Mr Bell said he expects to add around 60 over the next 12 months. The company has expanded its headquarters to cater for the increase.

Mr Bell said: "This has been another year of strong growth in very challenging market conditions and the early signs for 2009-09 are very encouraging."

He added that, while the outlook for all mainstream investments that can be held within a SIPP, such as commercial property, remains uncertain, any reduction in contributions is expected to be more than offset by a growing market share.

"The market continues to be remarkably resilient," said Mr Bell.

 Along with Mr Bell, sharholders include fund managers Midas Capital and Invesco Partners, while management and staff have a sizeable stake.

The business is chaired by former N Brown Group boss Jim Martin.