Hargreaves Lansdown (HL.)

Sector:

Financials

Index:

FTSE 250

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

Hargreaves Lansdown CEO to step down

By Michele Maatouk

Date: Monday 17 Oct 2022

LONDON (ShareCast) - (Sharecast News) - Hargreaves Lansdown reported a drop in first-quarter assets under administration on Monday as it announced the departure of chief executive Chris Hill, amid reports the company has been hit by a lawsuit over the failure of Neil Woodford's equity income fund.
Hill has decided to retire after six years in the role. The investment platform said the board is undertaking a "thorough and extensive" search for his successor and Hill will remain in the role up to November 2023 to allow time for a handover.

News of Hill's departure came alongside first-quarter results, which showed that assets under management fell to £122.7m from £138m in the same period a year earlier. HL said this reflected adverse market movement across the quarter of £1.8bn, with negative performance in September offsetting July's positive movement.

The company reported net new business of £0.7bn, down from £1.3bn, reflecting moderated flows across the market. HL saw active client growth of 17,000 in the quarter, down from 23,000 in the first quarter a year earlier, driven by net new clients in the SIPP, ISA and Active Savings accounts. Client retention was 92.2%, marginally ahead of the last full year's 92.1%.

Revenue for the period rose 15% to £162.9, driven by higher revenue on cash.

Hill said: "The impact of the challenging macroeconomic and geopolitical backdrop on asset values, client confidence and propensity to invest has been seen across our industry."

The firm lifted its FY2023 revenue margin guidance to 49-52 basis points. Cash margin guidance was increased to 130-150 bps and shares margin guidance reduced to 30-35 bps. All other guidance remains unchanged.

"As we progress through this year, given the uncertain economic environment and market conditions, we remain focused on cost control and investment discipline," HL said.

The first-quarter results followed reports over the weekend that the investment platform has been hit by a multi-million pound lawsuit over the failure of Neil Woodford's equity income fund, which left hundreds of thousands of investors nursing losses.

According to Reuters, claims management firm RGL said it had filed the claim in London's High Court on Friday on behalf of an initial 3,200 investors against HL, which promoted the former flagship LF Woodford Equity Income Fund (WEIF).

RGL is also suing Link Fund Solutions (LFS), the fund's authorised corporate director, and said its claim could top 100 million pounds ($112 million), Reuters said.



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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 927.00
52 Week Low 690.40
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
19.18% below the market average19.18% below the market average19.18% below the market average19.18% below the market average19.18% 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
26.17% below the market average26.17% below the market average26.17% below the market average26.17% below the market average26.17% below the market average
8.62% below the sector average8.62% below the sector average8.62% below the sector average8.62% below the sector average8.62% below the sector average
Income
83.86% above the market average83.86% above the market average83.86% above the market average83.86% above the market average83.86% above the market average
75.76% above the sector average75.76% above the sector average75.76% above the sector average75.76% above the sector average75.76% above the sector average
Growth
7.87% above the market average7.87% above the market average7.87% above the market average7.87% above the market average7.87% above the market average
22.22% above the sector average22.22% above the sector average22.22% above the sector average22.22% above the sector average22.22% 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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