15th Feb 2023 07:40
(Alliance News) - Hargreaves Lansdown PLC on Wednesday reported a fall in managed assets over the course of its financial first half, but revenue and profit surged.
Hargreaves also promised to grow its ordinary dividend.
The retail investment platform reported that revenue in the six months ended December 31 jumped 20% to GBP350.0 million from GBP291.1 million a year ago. Pretax profit surged 31% to GBP197.6 million from GBP151.2 million.
The Bristol, England-based company had 1.768 million active clients on December 31, which it said was up 31,000 during the half-year.
Hargreaves ended the six-month period with GBP127.1 billion in total assets under administration, sliding 10% from GBP141.2 billion at the same point the year prior. However, this marks a slight improvement from GBP123.8 billion at June 30, the end of financial year 2022.
The firm reported GBP1.6 billion in net new business inflows in the period, 30% behind the GBP2.3 billion recorded a year before.
Hargreaves explained that the Russia-Ukraine war, UK inflation climbing to 40-year highs, and central banks upping interest rates led to the "lowest six-month period on record for consumer confidence, while investor confidence also hit its lowest level ever."
Hargreaves also declared an interim dividend of 12.70 pence up 3.6% from 12.26p a year ago. For the full-year, the company expects to grow its dividend by 3%.
Looking ahead, Hargreaves expects "the current uncertain economic environment and market conditions" to continue to impact investor confidence and in turn, net new business and dealing volumes.
Outgoing Chief Executive Chris Hill said: "Despite the challenging conditions that have characterised the last year we have made significant progress. We continue to enhance our lifelong relationship with clients, build client retention and generate new flows across our expanding services. We look ahead to the rest of 2023 with confidence."
In December, the company appointed Dan Olley, the chief executive officer of customer data science firm Dunnhumby Ltd, as its new CEO and executive director. It said Olley will take up the role once released from current obligations in 2023.
Hill announces his intention to retire in October. He has spent six years in the role and will remain in place as CEO and will support Hargreaves Lansdown until November 2023.
By Sophie Rose, Alliance News reporter
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