Hargreaves Lansdown (HL.)

Sector:

Financials

Index:

FTSE 100

956.80p
   
  • Change Today:
      71.00p
  • 52 Week High: 1,640.50
  • 52 Week Low: 762.60
  • Currency: UK Pounds
  • Shares Issued: 474.32m
  • Volume: 1,138,233
  • Market Cap: £4,538.28m
  • RiskGrade: 176

Hargreaves Lansdown AuM, net new business decline; shares slump

By Michele Maatouk

Date: Thursday 12 May 2022

LONDON (ShareCast) - (Sharecast News) - Hargreaves Lansdown shares tumbled on Thursday after the investment platform reported a drop in new business and assets under management.
The company said assets under management fell to £132.3m as at 30 April from £141.2m as at 31 December 2021. This incorporates adverse market movement throughout the period driven partly by exposure to global equity markets, particularly US technology stocks, with the Nasdaq down 21% over the period, it said.

Meanwhile, net new business fell to £2.5bn in the four months to the end of April, from £4.6bn a year earlier. HL said this reflects moderated flows being seen across the market. It pointed out that in 2021, flows benefited from improving market and investor confidence resulting from the Covid vaccine rollout, investment of excess cash built up during lockdown and elevated interest in share trading.

Revenue for the period came in at £196.5m, in line with expectations and down from £233.2m a year earlier.

Hargreaves reiterated its FY2022 guidance, while raising expected revenue margin on cash guidance to 30-35 basis points for the full financial year from 20 to 25bps previously, saying it sees the impact of base rate rises starting to come through.

It struck a cautious note on the outlook. "As we head toward the end of our financial year, given the uncertain economic environment and market conditions, we are focused on cost control and investment discipline," HL said.

Chief executive Chris Hill said: "The challenging backdrop driven by unprecedented macroeconomic and geopolitical events has impacted markets and investor confidence, in turn leading to moderated flows and asset levels with net new business of £2.5bn in this period.

"We saw a significant step up in flows in March and April from our tax year end campaign which focused on the benefits of long-term saving and investing, with £1.8bn of tax wrapped inflows leading to a record 747,000 clients contributing to their ISAs and pensions this tax year."

At 1510 BST, the shares were down 5.5% at 845.20p.

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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 956.80p
Change Today 71.00p
% Change 8.02 %
52 Week High 1,640.50
52 Week Low 762.60
Volume 1,138,233
Shares Issued 474.32m
Market Cap £4,538.28m
RiskGrade 176

HL. Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
62.21% below the market average62.21% below the market average62.21% below the market average62.21% below the market average62.21% below the market average
79.37% below the sector average79.37% below the sector average79.37% below the sector average79.37% below the sector average79.37% below the sector average
Price Trend
78.38% below the market average78.38% below the market average78.38% below the market average78.38% below the market average78.38% below the market average
91.04% below the sector average91.04% below the sector average91.04% below the sector average91.04% below the sector average91.04% below the sector average
Income
43.78% above the market average43.78% above the market average43.78% above the market average43.78% above the market average43.78% above the market average
35.9% below the sector average35.9% below the sector average35.9% below the sector average35.9% below the sector average35.9% below the sector average
Growth
99.61% above the market average99.61% above the market average99.61% above the market average99.61% above the market average99.61% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 8
Buy 1
Neutral 6
Sell 0
Strong Sell 5
Total 20
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 08-Aug-2022

Time Volume / Share Price
13:21 14 @ 956.80p
13:21 33 @ 956.80p
13:21 44 @ 956.80p
13:20 247 @ 956.80p
13:20 125 @ 956.60p

HL. Key Personnel

CEO Christopher Hill
CFO Amy Stirling

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