Hargreaves Lansdown (HL.)

Sector:

Financials

Index:

FTSE 100

863.60p
   
  • Change Today:
      0.20p
  • 52 Week High: 1,457.50
  • 52 Week Low: 740.80
  • Currency: UK Pounds
  • Shares Issued: 474.32m
  • Volume: 762,262
  • Market Cap: £4,096.22m
  • RiskGrade: 176

Hargreaves Lansdown's bumper dividend disappoints

By Oliver Haill

Date: Tuesday 07 Aug 2018

LONDON (ShareCast) - (Sharecast News) - 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.
Total assets under administration grew 16% to £91.6bn over the 12 months to 30 June, up from £88.8bn in the final quarter, as a record £7.6bn of net new business inflows was augmented by £5.9m of market growth of the assets. It would have been even higher had not one of the company's founders withdrawn £1.1bn of his shares from the platform.

On net revenue that rose 16% to £447.5m, profit before tax grew 10% to £292.4m, short of the £295.3m that City analysts expected, as operating costs increased 25% to support higher client activity levels and management's increased investment to support what they see as "significant structural growth opportunity" in the UK savings and investments market, as well as a 16% increase in marketing spend. Earnings per share rose 11% to 49.6p, which was below the consensus forecast of 50.36p.

As well as an ordinary dividend hiked 11% to 32.2p per share another special dividend will be paid to shareholders of 7.8p to take the total up to 40p, up 38% on the payout a year ago, when the company was unable to pay out a special dividend as it was required by the Financial Conduct Authority to increase its regulatory capital. The 2018 payout ratio was 82% left the total dividend slightly short of the 41.9p average forecast by analysts.

The number of HL's active clients increased by 137,000 in the year to 1.09m, 16% more than last year, with chief executive Chris Hill saying that many of them transferring from other platforms. Market share rose by 1.3% to 39.1% and share of the execution only stockbroking market was up 1.7% to 31.3%.

"Brexit is on the horizon and the prevailing political and economic turbulence is having an effect on investor confidence," said Hill. "However, we believe that continuing to place our clients at the centre of what we do and establishing a lifelong relationship with them will enable us to continue to build share in a growing market.

"Our expertise and client service are rightly respected, and I believe the strength and scale of our business means we can continue to develop our offering to the benefit of all our stakeholders in the future."

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

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

HL. Market Data

Currency UK Pounds
Share Price 863.60p
Change Today 0.20p
% Change 0.02 %
52 Week High 1,457.50
52 Week Low 740.80
Volume 762,262
Shares Issued 474.32m
Market Cap £4,096.22m
RiskGrade 176

HL. Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
36.88% below the market average36.88% below the market average36.88% below the market average36.88% below the market average36.88% below the market average
64.52% below the sector average64.52% below the sector average64.52% below the sector average64.52% below the sector average64.52% below the sector average
Price Trend
28.37% below the market average28.37% below the market average28.37% below the market average28.37% below the market average28.37% below the market average
22.73% below the sector average22.73% below the sector average22.73% below the sector average22.73% below the sector average22.73% below the sector average
Income
34.80% above the market average34.80% above the market average34.80% above the market average34.80% above the market average34.80% above the market average
41.03% below the sector average41.03% below the sector average41.03% below the sector average41.03% below the sector average41.03% below the sector average
Growth
96.98% above the market average96.98% above the market average96.98% above the market average96.98% above the market average96.98% above the market average
96.67% above the sector average96.67% above the sector average96.67% above the sector average96.67% above the sector average96.67% above the sector average

What The Brokers Say

Strong Buy 7
Buy 1
Neutral 10
Sell 0
Strong Sell 3
Total 21
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

HL. Dividends

  Latest Previous
  Final Interim
Ex-Div 22-Sep-22 03-Mar-22
Paid 24-Oct-22 01-Apr-22
Amount 27.44p 12.26p

Trades for 25-Nov-2022

Time Volume / Share Price
17:01 4,150 @ 852.09p
17:01 4,150 @ 852.26p
16:59 5,140 @ 855.89p
16:45 181 @ 859.00p
16:45 181 @ 859.00p

HL. Key Personnel

CEO Christopher Hill
CFO Amy Stirling

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