LONDON (ShareCast) - (Sharecast News) - Hargreaves Lansdown posted a rise in interim pre-tax profit on Friday but a drop in net new business, as it noted an improvement in investor confidence since the general election.
In the six months to the end of December, net new business declined 9% to £2.3bn, but pre-tax profit increased 12% to £171.1m and revenue rose 9% to £257.9m. Assets under administration grew 22% to £105.2bn and active client numbers were up 4% to 1.274m.

The interim dividend was lifted 9% to 11.2p a share.

The company said new business in the second half was hit by the "challenging" external market, with political uncertainty, the general election, Brexit and world trade tariffs all raising concerns.

"As we have seen in previous unpredictable periods, client confidence and retail investment flows were affected," it said, adding that the Investment Association reported weak retail fund flows throughout, while the suspension of the two Woodford funds also contributed to the general unease.

However, Hargreaves said that since the election, there has been an improvement in investor confidence, which has translated into increased client activity and early signs of renewed net flows into retail funds.

"We hope that this sentiment will continue through the key tax year end season and beyond, and remain confident that we are well placed to help our clients prosper and deliver strong and sustainable returns for our shareholders," it said.

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