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Wednesday, January 31, 2024

Earnings stoop 26% at Hargreaves Lansdown

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Full yr pre-tax income slumped by 26% to £269.2m at funding and platform supplier Hargreaves Lansdown as the corporate was hit by financial headwinds.

Belongings additionally fell by 9% to £123.8bn attributable to market falls.

The corporate admitted it had been a troublesome 12 months as markets dived and the worldwide financial downturn hit enterprise.

Regardless of the challenges the corporate mentioned its variety of energetic shoppers rose by 92,000 to a report 1.737m and web new enterprise was a wholesome £5.5bn.

The Bristol-based enterprise mentioned the “troublesome backdrop in 2022” was pushed by macroeconomic and geopolitical occasions which hit markets and dented investor confidence all year long. 

It noticed subdued flows for a lot of direct-to-consumer companies and decrease exercise throughout wealth administration as a complete. 

As a result of robust situations HL noticed a discount in flows total and consumer progress and this impacted outcomes. 

The corporate mentioned it was persevering with to spend money on its app, which noticed 290m digital visits in 2022, and there was a rise in cell engagement with 61.5% of digitally energetic shoppers utilizing the app (2021: 58.3%). 

A report 882,000 shoppers contributed to their ISAs and pensions in the course of the tax yr and web new enterprise per new consumer elevated to £15,565 (2021: £13,943).

The agency has additionally launched the primary of a brand new vary of funds with extra new funds on the way in which, together with a brand new US fund launch shortly. 

The corporate additionally plans to launch a pilot for a brand new ‘Augmented Recommendation’ service on the finish of H1 which is able to present a digital dashboard for shoppers and prompts and help on shoppers’ private finance.

CEO Chris Hill mentioned: “Towards a macroeconomic and geopolitical local weather not seen in a technology with subdued flows and decrease exercise throughout wealth administration, we’ve delivered £5.5 billion of web new enterprise via the yr and the standard of our service attracted an extra 92,000 web new shoppers.

“Our progress in opposition to our strategic objectives has been robust since February with the launch of the primary of our new funds and an acceleration in our Lively Financial savings proposition, a vital service to assist shoppers handle their money financial savings at this essential time, resulting in a report £4.6bn belongings, with over 114,000 consumer accounts.”


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