TIDMHL.
RNS Number : 5911Q
Hargreaves Lansdown PLC
19 October 2023
Trading update
19 October 2023
Hargreaves Lansdown plc today issues a trading update in respect
of its first quarter ended 30 September 2023.
Highlights
-- Net new business of GBP0.6 billion in the period and closing
Assets under Administration ("AUA") of GBP134.8 billion.
-- Net new client growth of 8,000 in the period, taking us to
1,812,000 active clients, with client retention rate of 91.7%.
-- Revenue for the period of GBP183.8 million, up 13% (Q1 2023: GBP162.9m).
Dan Olley, Chief Executive Officer, commented:
"We continue to see net client growth and positive net new
business despite the macroeconomic backdrop and its on-going impact
on investor confidence and client behaviour.
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."
Trading performance
-- Net new business of GBP0.6 billion in the quarter (Q1 2023:
GBP0.7bn), reflects moderated flows being seen across the market.
Active Savings continues to perform well and has been the key
driver of net flows as clients favour cash savings over risk based
investments.
-- Net client growth of 8,000 in the quarter (Q1 2023: 17,000)
primarily driven by net new clients in the SIPP and Active Savings
accounts. Client retention at 91.7% (FY2023: 92.2%) and asset
retention at 89.0% (FY2023: 90.4%) reflects the muted macroeconomic
backdrop and the need for various cohorts of clients to make cash
withdrawals.
-- Share dealing volumes averaged 634,000 per month in the
quarter (Q1 2023: 700,000) reflecting wider market trends.
-- Client cash balances were GBP12.4 billion at the end of the
quarter, 9.2% of total AUA, with heightened levels of cash
withdrawals and an increase in movement of cash into Active Savings
in July and August before stabilising in September.
-- Total revenue in the quarter of GBP183.8 million (Q1 2023:
GBP162.9m) with net interest margin growth more than offsetting the
revenue impact of the reduction in share dealing volumes.
Financial calendar
Our Annual General Meeting is scheduled to be held on 8 December
2023 and our interim results will be issued on 22 February
2024.
Contacts:
Investors Media
James Found, Head of Investor Danny Cox, Head of Communications
Relations +44(0)7989 672071
+44(0)7970 066634 Nick Cosgrove, Brunswick
0207 404 5959
Forward looking statements
This announcement contains forward-looking statements with
respect to the financial condition, results and business of the
Group. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events, and depend on
circumstances, that will occur in the future. The Group's actual
results may differ materially from the results expressed or implied
in these forward-looking statements. Nothing in this announcement
should be construed as a profit forecast. This announcement is
unaudited. This statement should not be seen as a promotion or
solicitation to buy Hargreaves Lansdown plc shares. It should be
remembered that the value of shares can fall as well as rise and
therefore you could get back less than you invested.
LEI Number: 2138008ZCE93ZDSESG90
Revenue, clients and share dealing volumes
Key metrics 3 months 3 months 3 months 3 months 3 months
to 30 September to 30 June to 31 March to 31 December to 30 September
2023 2023 2023 2022 2022
Revenue (GBPm) 183.8 197.0 188.1 187.1 162.9
----------------- ------------ ------------- ---------------- -----------------
Net new clients 8,000 13,000 23,000 14,000 17,000
----------------- ------------ ------------- ---------------- -----------------
Total active
clients 1,812,000 1,804,000 1,791,000 1,768,000 1,754,000
----------------- ------------ ------------- ---------------- -----------------
Client Retention
Rate (%) 91.7 92.0 92.0 92.6 92.2
----------------- ------------ ------------- ---------------- -----------------
Asset Retention
Rate (%) 89.0 89.7 89.1 91.1 91.9
----------------- ------------ ------------- ---------------- -----------------
Share dealing
volumes per
month 634,000 685,000 770,000 627,000 700,000
----------------- ------------ ------------- ---------------- -----------------
Assets under administration
AUA (GBPbillion) 3 months 3 months 3 months 3 months 3 months
to 30 September to 30 June to 31 March to 31 December to 30 September
2023 2023 2023 2022 2022
Opening AUA 134.0 132.0 127.1 122.7 123.8
----------------- ------------ ------------- ---------------- -----------------
Net new business
- platform (0.1) 0.9 0.9 (0.1) -
----------------- ------------ ------------- ---------------- -----------------
Net new business
- Active
Savings 0.7 0.8 0.7 1.0 0.7
----------------- ------------ ------------- ---------------- -----------------
Total net
new business 0.6 1.7 1.6 0.9 0.7
----------------- ------------ ------------- ---------------- -----------------
Market movements
and other 0.2 0.3 3.3 3.5 (1.8)
----------------- ------------ ------------- ---------------- -----------------
Closing AUA 134.8 134.0 132.0 127.1 122.7
----------------- ------------ ------------- ---------------- -----------------
Closing As at 30 As at 30 As at 31 As at 31 As at 30
AUA (GBPbillion) September June 2023 March 2023 December September
2023 2022 2022
Funds 61.9 62.2 61.6 59.6 57.4
----------- ----------- ------------ ---------- -----------
Shares 51.9 50.8 49.8 47.1 45.2
----------- ----------- ------------ ---------- -----------
Cash 12.4 13.1 13.5 14.1 14.8
----------- ----------- ------------ ---------- -----------
HL Funds 8.7 8.7 8.6 8.3 7.8
----------- ----------- ------------ ---------- -----------
Active Savings 8.5 7.8 7.0 6.3 5.3
----------- ----------- ------------ ---------- -----------
Double count(1) (8.6) (8.6) (8.5) (8.3) (7.8)
----------- ----------- ------------ ---------- -----------
Total 134.8 134.0 132.0 127.1 122.7
----------- ----------- ------------ ---------- -----------
Average 3 months 3 months 3 months 3 months 3 months
AUA (GBPbillion) to 30 September to 30 June to 31 March to 31 December to 30 September
2023 2023 2023 2022 2022
Funds 62.6 62.1 61.8 59.2 59.8
----------------- ------------ ------------- ---------------- -----------------
Shares 52.2 50.4 50.1 47.3 47.5
----------------- ------------ ------------- ---------------- -----------------
Cash 12.5 13.4 13.6 14.3 14.8
----------------- ------------ ------------- ---------------- -----------------
HL Funds 8.8 8.7 8.6 8.2 8.1
----------------- ------------ ------------- ---------------- -----------------
Active Savings 8.3 7.5 6.8 6.0 5.1
----------------- ------------ ------------- ---------------- -----------------
Double count(1) (8.7) (8.6) (8.5) (8.1) (8.1)
----------------- ------------ ------------- ---------------- -----------------
Total 135.7 133.5 132.4 126.9 127.2
----------------- ------------ ------------- ---------------- -----------------
(1) All HL Funds are held in Vantage or the Portfolio Management
Service (PMS) and are included in the Funds category of the table
with the exception of a small balance held off platform by third
parties. To avoid double counting the amount held in Vantage or PMS
has been deducted.
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END
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