Financial services firm Hargreaves Lansdown (HL) has seen revenue and profits rise despite what bosses called a “challenging” broader economic environment.
The Bristol-based company reported revenue of £735.1m in the 12 months to June - up by around 25% on the previous year. Pre-tax profits jumped by 50% to £402.7m.
The FTSE 100 firm recorded a 13% drop in cash inflow from new clients (£4.8bn), though it added 167,000 new customers during the period, taking its total base to 1.8 million active clients. The wealth management platform now has £134bn of assets under its administration, up 8% on last year.
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Chief executive Dan Olley, who recently took over the running of the business following Chris Hill’s retirement, said: “We saw notable growth into our active savings proposition which continues to show the benefits of our diversified business model as we give our clients access to competitive rates for their cash.”
The board recommended a dividend of 41.5p a share, up 4.5% on last year.
Dr James Fox, an equity research analyst at investing comparison platform, InvestingReviews.co.uk, said: "Despite strong headwinds in the form of a cost-of-living crisis, Hargreaves Lansdown unveiled a strong set of full-year results on Tuesday. (September 19) Looking at the headline data, shareholders will likely be impressed by the company’s beat on revenue and earnings. The surge in net interest income played an important role in driving revenue up 26% to £735.1m.”
Dr Fox added: “However, amid a challenging economic backdrop, net new client growth slowed again, at 67k for the year. This is significantly down on the 233k net new clients achieved in 2021. With regards to investor activity, the slight uptick in trade volumes towards the end of the financial year may be a sign of improving sentiment. Moreover, with interest rates likely to moderate over the coming year, the return of capital to equities could provide a further boost."
