Hargreaves Lansdown (HL.)

Sector:

Financials

Index:

FTSE 250

736.00p
   
  • Change Today:
    -2.00p
  • 52 Week High: 927.00p
  • 52 Week Low: 690.40p
  • Currency: UK Pounds
  • Shares Issued: 474.32m
  • Volume: 730,810
  • Market Cap: £3,490.99m
  • RiskGrade: 176

Hargreaves Lansdown faces headwinds, Shore and Jefferies say

By Sean Farrell

Date: Friday 07 Aug 2020

LONDON (ShareCast) - (Sharecast News) - Hargreaves Lansdown's results were positive but the company faces tougher times ahead, Shore Capital and Jefferies said.
The investment platform reported annual underlying pretax profit up 11% to £339.5m as revenue rose 15% to £550.9m. The FTSE 250 company's annual dividend of 54.9p beat expectations for a 45.4p payout.

Shore Capital analyst Paul McGinnis, who rates the shares as 'hold', said new customers recruited during the Covid-19 lockdown had strengthened revenue yields to support the results but that a collapse in Libor rates since April would cut the interest Hargreaves can earn on client cash.

"The PBT (pretax profit) sensitivity of a c50 [basis points] drop in this revenue yield c£12bn of client cash would by c£60m or 18% of the PBT just reported for June 20," McGinnis wrote in a note to clients. "While these results represent a beat, we see profit headwinds for the current year and would be tempted to take profits if the shares move higher on the back of this announcement."

Hargreaves shares rose 2% to £18.69.5 at 15:17 BST.

Jefferies analyst Tom Mills and colleagues, who rate Hargreaves shares as 'underperform', said the results were a "good mixed bag" but warned that fee margins would be squeezed and that this was being overlooked. The results were also flattered by £39m from the sale of FundsLibrary, which more than offset higher operating expenses, they said.

"These are a good set of results, with underlying operating metrics in line with market expectations," Mills wrote in a note. "The high dividend will be attractive, particularly when so many are being cut, but our longer-term view remains negative."



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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 736.00p
Change Today -2.00p
% Change -0.27 %
52 Week High 927.00p
52 Week Low 690.40p
Volume 730,810
Shares Issued 474.32m
Market Cap £3,490.99m
RiskGrade 176

HL. Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
19.63% below the market average19.63% below the market average19.63% below the market average19.63% below the market average19.63% below the market average
69.52% below the sector average69.52% below the sector average69.52% below the sector average69.52% below the sector average69.52% below the sector average
Price Trend
27.77% below the market average27.77% below the market average27.77% below the market average27.77% below the market average27.77% below the market average
10.34% below the sector average10.34% below the sector average10.34% below the sector average10.34% below the sector average10.34% below the sector average
Income
83.59% above the market average83.59% above the market average83.59% above the market average83.59% above the market average83.59% above the market average
72.73% above the sector average72.73% above the sector average72.73% above the sector average72.73% above the sector average72.73% above the sector average
Growth
7.80% above the market average7.80% above the market average7.80% above the market average7.80% above the market average7.80% above the market average
23.36% above the sector average23.36% above the sector average23.36% above the sector average23.36% above the sector average23.36% above the sector average

What The Brokers Say

Strong Buy 4
Buy 3
Neutral 3
Sell 5
Strong Sell 2
Total 17
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
  Interim Final
Ex-Div 29-Feb-24 16-Nov-23
Paid 28-Mar-24 15-Dec-23
Amount 13.20p 28.80p

Trades for 28-Mar-2024

Time Volume / Share Price
16:57 5,454 @ 735.90p
16:35 476,063 @ 736.00p
16:35 2,205 @ 736.00p
16:35 2,375 @ 736.00p
16:35 1,527 @ 736.00p

HL. Key Personnel

CEO Dan Olley
CFO Amy Stirling
Chair Alison Platt

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