TIDMHL.
RNS Number : 4306G
Hargreaves Lansdown PLC
19 July 2023
Trading update
19 July 2023
Hargreaves Lansdown plc today issues a trading update in respect
of the three months ended 30 June 2023 ("Q4").
Highlights
-- Net new business of GBP1.7 billion in the period, up 6% on the previous quarter.
-- Closing Assets under Administration ("AUA") of GBP134.0 billion, up 2% in the quarter.
-- Net client growth of 13,000 in the period, taking us to 1,804,000 clients.
Chris Hill, Chief Executive Officer, commented:
"We delivered net new business of GBP1.7 billion in the period,
up 6% on the previous quarter. The tax year end season remains a
critical time for our clients and this year we focused on
supporting them to navigate the changes to the tax landscape,
making the most of their allowances and delivering further value to
our overall client proposition.
The improvements in the previous quarter, including the launch
of a new cash ISA, three new Portfolio Funds and price reductions
on our LISA and JISA accounts, were further enhanced with the
removal of fees for dividend reinvestment and regular monthly
investing along with the addition of new partner banks to Active
Savings.
The breadth of and continued investment into our client
proposition, means we remain well positioned to grow and support
both new and existing clients with their investment and savings
needs."
Trading performance
-- Net new business of GBP1.7 billion in Q4 (Q4 FY22: GBP1.8bn),
despite moderated flows being seen across the market. This was 6%
up on the previous quarter to March with continued net flows on to
the platform as clients focused on utilising their ISA and SIPP tax
allowances, particularly in the final days of the 2023 tax year and
the start of the 2024 tax year.
-- Active Savings saw net inflows of GBP0.8 billion in the
quarter (Q4 FY22: GBP0.7 billion) as clients continue to manage
their cash savings through us and the broad access we provide to a
range of rates and banks.
-- Active client growth of 13,000 in the quarter (Q4 FY22:
13,000) with c lient retention at 92.0%, up on last year (Q4 FY22:
91.3%); asset retention of 89.7%, lower than last year (Q4 FY22:
91.5%) as expected, continuing the trend seen for much of this
year, where across the market, specific cohorts of clients are
making cash withdrawals to fund cost-of-living increases.
-- Closing AUA of GBP134.0 billion; GBP0.3 billion positive
market movement, combined with GBP1.7 billion of net new business
in the quarter.
-- Share dealing volumes have averaged 685,000 per month in the
quarter, 11% lower than the previous quarter and 12% lower than
prior year. Investor confidence across the quarter has been low
with cost-of-living issues, rising interest rates and market
volatility impacting deal volumes.
Financial calendar
Our full year results, including progress on our strategic
initiatives will be issued on 19 September 2023. Our Annual General
Meeting is scheduled to be held on 8 December 2023.
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
Clients, retention rates and share dealing volumes
Key metrics 3 months 3 months 3 months 3 months 3 months
to 30 June to 31 March to 31 December to 30 September to 30 June
2023 2023 2022 2022 2022
Net new clients 13,000 23,000 14,000 17,000 13,000
------------ ------------- ---------------- ----------------- ------------
Total active
clients 1,804,000 1,791,000 1,768,000 1,754,000 1,737,000
------------ ------------- ---------------- ----------------- ------------
Client Retention
Rate (%) 92.0 92.0 92.6 92.2 91.3
------------ ------------- ---------------- ----------------- ------------
Asset Retention
Rate (%) 89.7 89.1 91.1 91.7 91.5
------------ ------------- ---------------- ----------------- ------------
Share dealing
volumes per
month 685,000 770,000 627,000 700,000 779,000
------------ ------------- ---------------- ----------------- ------------
Assets under administration (AUA)
AUA (GBPbillion) 3 months 3 months 3 months 3 months 3 months
to 30 June to 31 March to 31 December to 30 September to 30 June
2023 2023 2022 2022 2022
Opening AUA 132.0 127.1 122.7 123.8 134.7
------------ ------------- ---------------- ----------------- ------------
Net new business
- platform 0.9 0.9 (0.1) - 1.1
------------ ------------- ---------------- ----------------- ------------
Net new business
- Active
Savings 0.8 0.7 1.0 0.7 0.7
------------ ------------- ---------------- ----------------- ------------
Total net
new business 1.7 1.6 0.9 0.7 1.8
------------ ------------- ---------------- ----------------- ------------
Market movements
and other 0.3 3.3 3.5 (1.8) (12.7)
------------ ------------- ---------------- ----------------- ------------
Closing AUA 134.0 132.0 127.1 122.7 123.8
------------ ------------- ---------------- ----------------- ------------
Closing As at 30 As at 31 As at 31 As at 30 As at 30
AUA (GBPbillion) June 2023 March 2023 December September June 2022
2022 2022
Funds 62.2 61.6 59.6 57.4 58.2
----------- ------------ ---------- ----------- -----------
Shares 50.8 49.8 47.1 45.2 45.9
----------- ------------ ---------- ----------- -----------
Cash 13.1 13.5 14.1 14.8 15.0
----------- ------------ ---------- ----------- -----------
HL Funds 8.7 8.6 8.3 7.8 8.0
----------- ------------ ---------- ----------- -----------
Active Savings 7.8 7.0 6.3 5.3 4.6
----------- ------------ ---------- ----------- -----------
Double count(1) (8.6) (8.5) (8.3) (7.8) (7.9)
----------- ------------ ---------- ----------- -----------
Total 134.0 132.0 127.1 122.7 123.8
----------- ------------ ---------- ----------- -----------
Average 3 months 3 months 3 months 3 months 3 months
AUA (GBPbillion) to 30 June to 31 March to 31 December to 30 September to 30 June
2023 2023 2022 2022 2022
Funds 62.1 61.8 59.2 59.8 61.0
------------ ------------- ---------------- ----------------- ------------
Shares 50.4 50.1 47.3 47.5 48.7
------------ ------------- ---------------- ----------------- ------------
Cash 13.4 13.6 14.3 14.8 14.8
------------ ------------- ---------------- ----------------- ------------
HL Funds 8.7 8.6 8.2 8.1 8.3
------------ ------------- ---------------- ----------------- ------------
Active Savings 7.5 6.8 6.0 5.1 4.3
------------ ------------- ---------------- ----------------- ------------
Double count(1) (8.6) (8.5) (8.1) (8.1) (8.3)
------------ ------------- ---------------- ----------------- ------------
Total 133.5 132.4 126.9 127.2 128.8
------------ ------------- ---------------- ----------------- ------------
(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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