19th Oct 2023 08:33
(Alliance News) - Hargreaves Lansdown PLC on Thursday reported net client growth decelerated in its first-quarter, amid ongoing macroeconomic challenges.
The Bristol-based digital wealth management service said it saw net new business of GBP600 million in its first quarter ended September 30, slowing annually from GBP700 million, reflecting "moderated flows" seen across the market.
Net new clients grew by 8,000 over the quarter, easing from growth of 17,000 a year prior, bringing its total to 1.8 million active clients, at a 91.7% retention rate, down from 92.2% a year ago. Revenue grew 13% year-on-year to GBP183.8 million from GBP162.9 million, as growth in net interest margin offset the revenue impact of lower share dealing volumes. A year prior, revenue had grown 15%.
Chief Executive Officer Dan Olley said: "Clients are looking to invest more in cash than risk-based investments, from our active savings offer, giving easy access to a range of banking partners, to money market funds and short-dated bonds. Combining this with informative and relevant content provides our clients with a wide range of solutions to meet their saving and investment needs."
Assets under administration as at September 30 increased 0.6% to GBP134.8 billion from GBP134.0 billion at the end of June. The figure was boosted by the net new business, as well as a GBP200 million tailwind from market movements.
The company will release its half-year results on February 22.
Hargreaves Lansdown shares fell 4.9% to 700.80 pence each on Thursday morning in London.
By Tom Budszus, Alliance News reporter
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