Strong year of growth at Hargreaves Lansdown

Irving Hamilton
August 10, 2018

Hargreaves Lansdown rewarded shareholders with a bumper special dividend as the pensions and investments provider topped 1m active clients for the year, though annual numbers came in slightly short of expectations. Net revenue moved 16% higher, while profit before tax was up 10% versus the comparable period.

HL shares fell 2% to 2,075p in early trading.

Hargreaves Lansdown CEO Chris Hill sounded positive notes on FY business outlook, in spite of continued uncertainty over post-Brexit UK/EU financial relationship.

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It said that "prevailing political and economic turbulence" was now taking its toll on investor confidence, although it added it was confident it would continue to grow its share in the market. This has helped it to become increasingly popular among investors, and a relatively strong reputation could mean that it is able to deliver further growth in net new business inflows and total assets under administration over the medium term.

Hill maintained the group's focus on client service was necessary to position it to capture "the structural growth opportunity" in the United Kingdom savings and investments market, flagging up "significant challenges" society faces in the United Kingdom, including a £314bn savings gap, a greater need for self-provision over a longer period as life expectancy has extended, and "a complex set of government incentives and tax allowances to navigate".

Investment company Hargreaves Lansdown has reported a year of "strong" growth with the number of active clients it served passing one million and profits before tax nearing the £300m mark. "Our platform, combined with our scale, knowledge, expertise and client focus, uniquely positions us to provide the solutions required and capitalise on this opportunity".

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