Hargreaves Lansdown Share Discussion Threads

[leeson31] 16/4/2014 07:25

16 April 2014

Interim Management Statement

Hargreaves Lansdown Plc

Hargreaves Lansdown Plc ('the Group') publishes today its Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency rules. This statement covers the period from 1 January 2014 to 15 April 2014, and includes trading results for the three and nine months ended 31 March 2014.

Highlights

-- Record level of Assets under Administration ("AUA"), an increase of GBP2.3 billion in the three months to 31 March 2014 to GBP45.7 billion (31 March 2013: GBP35.1 billion).

-- Record quarterly net inflows of GBP1.83 billion in the three months to 31 March 2014 (2013: GBP1.80 billion).

-- Record cumulative total net inflows of GBP4.63 billion in the nine months to 31 March 2014 (2013: GBP3.44 billion).

-- Year-to-date total net revenue up by 8% to GBP216.0 million.
-- Net new active Vantage clients up 33,000 in the quarter (2013: 30,000)
-- Total active clients as at 31 March 2014 617,000 (31 March 3013: 483,000)

Chief Executive's Statement

We are pleased to report net inflows of GBP1.83 billion, a record for any quarter in Hargreaves Lansdown's history. Net inflows for the year to date, at GBP4.63 billion, are up 35% on the comparative nine month period. Assets Under Administration now stand at GBP45.7 billion, (31 March 2013: GBP35.1 billion), up 30%. Active Vantage clients now number 609,000 (March 2013: 476,000), a rise of 33,000 in the quarter (2013: 30,000), a 10% improvement on last year, and a rise of 133,000 in the last 12 months.

We are also pleased with the 6% increase in net revenue for the quarter to GBP73.7 million (3 months to 31 March 2013: GBP69.5 million). New clients and accounts have generated increased revenue whilst UK stock markets (a key driver of revenue levels) have been muted, falling by 1.5%. Interest rates have remained low, prolonging the drag on our interest income. Whilst not reported on a quarterly basis, operating costs have continued to be well controlled.

Our first class service, investor confidence and the attraction of equity investment in comparison to cash in the continued low interest rate environment have all contributed to our continued growth. Positive stock markets around tax year end can be helpful and given that the FTSE All-Share index fell 1.5% in the key quarter to March, compared to a 9.3% increase in last year's comparative quarter, we are additionally delighted with our performance. In January 2013 following the implementation of RDR1, transfers in stock between platforms were introduced affording a significant boost to our business at that time. At the same time net new business was boosted by the introduction of a SIPP loyalty bonus. The comparative third quarter of 2014, whilst not enjoying the same regulatory boost, nevertheless delivered substantial net transfers in to Hargreaves Lansdown. The overall effect was a record third quarter for net inflows.

This quarter has seen the transition to the arrangements required by the Retail Distribution Review 2 ("RDR2"). These new rules went live on 6 April 2014. We are pleased that in making these changes Hargreaves Lansdown was able to reduce the cost of investing for the majority of our clients, and deliver these strong results at the same time.

We have been satisfied with our implementation of the new rules to date. Hargreaves Lansdown offers a high quality, secure, competitive, low cost service for the general public. Clients are clearly attracted to the discounts we have negotiated for clients on our "Wealth 150+" funds. Over 30% (GBP250 million) of all new fund investments in March were into Wealth 150+ funds, and over 40% in early April. The extensive operational and technology changes required for the new rules have also been integrated into the service without major issue.

Hargreaves Lansdown has always aimed to be the best for overall value. We are happy with our current strong position, but not complacent. As the recent price changes continue to be absorbed we will keep the marketplace under review and listen to the feedback from our clients to ensure we remain the best value place for the UK public to buy investments.

The spring budget announcements were the other big news of the quarter. The changes announced represent a sea change in opportunity, with exceptional reform of Pensions, a higher ISA limit and more simplicity. More importantly, positive voter and press reaction have signalled to politicians that pensions and investments are an important potential vote-winning subject. We may now find that there is more enthusiasm about retail investing, something Hargreaves Lansdown has long campaigned for.

We are enthusiastically preparing to service these new and welcome flexible arrangements, including continuing to look at the potential for enhanced cash services. As one of the largest providers of high quality, low cost ISAs and modern drawdown pensions in the UK we should stand to benefit from these changes. We also welcome the 0.75% charging cap on default funds in Corporate Pensions. As a modern, efficient, low-cost provider of corporate pensions this cap will be easily accommodated and should lead to more employers considering switching from older, expensive, poor service schemes.

Looking forward, the launch of the fund manager Neil Woodford's new venture will clearly create interest. Having delivered the regulatory change our development capacity can now return to assisting in augmenting the momentum we have built up. We look forward with optimism to a successful full year and new and exciting opportunities.

Ian Gorham, Chief Executive

[zangdook] 15/4/2014 14:38

Another example of how to do it:

Heartbleed Bug - Nationwide undertakes regular and comprehensive security testing. We are sure that no customers using our online services are at risk. There is currently no need for customers to take any action to change Nationwide passwords.

Still nothing from HL.

[spock88] 14/4/2014 19:28

Thanks mate

[leeson31] 14/4/2014 19:17

Looks at the 50pc macd cycle point.... Give or take 25p seems to be the bottom area.... Cheers

[spock88] 14/4/2014 19:04

leeson, the man with the charts do you think this is a good time to buy back in or has it further to fall mate ?

Looking well oversold now.

[zangdook] 14/4/2014 08:21

Well, they've finally got around to updating the certificate, but still no announcement or advice about passwords, by email or on the website.

Site: online.hl.co.uk
Server software: Apache
Was vulnerable: Probably (known use OpenSSL, but might be using a safe version)
SSL Certificate: Now Safe (created 3 days ago at Apr 11 00:00:00 2014 GMT)
Assessment: Change your password on this site if your last password change was more than 3 days ago

[nofool] 13/4/2014 12:44

If you want charts. This is the thread you want!

[zangdook] 11/4/2014 04:45

Even roomorama have sent me a reassuring email about heartbleed. I guess they must have more than £43 billion under administration, that's why they take security more seriously than Hargreaves Lansdown.

[zangdook] 10/4/2014 11:32

Detected server software of Apache
That server is known to use OpenSSL and could have been vulnerable.

The SSL certificate for online.hl.co.uk valid 1 month ago at Mar 7 00:00:00 2014 GMT.
This is before the heartbleed bug was published, it may need to be regenerated.




Come on, HL, update your certificate and put out a statement. I'm not logging in until you do. How many billions of pounds are invested through you? And not even a hint about this on your website.

[leeson31] 19/3/2014 16:11

yeah i think it was that allowance increase £15k.. all good business potenmtially for brokers.

cheeers

[enami] 19/3/2014 16:10

+14.4% I guess today's budget seen as positive for asset managers.

Upside targets ATH at 1560.6 intraday / 1549 close.
Wave 5 target 1733

[leeson31] 19/3/2014 15:38

consolidation over, mini downtrend broke, back on for ath's now >>

[mintpenguin] 07/2/2014 17:14

Hummmm, head and shoulders?... Sometimes they complete here or same drop again to come??

[zangdook] 21/1/2014 11:37

Why do you say (except in the H-L isa)? ISTM the double charging applies there too. Am I missing something?

[hoggetwood] 21/1/2014 10:47

Z. Yes. Just as you say. It's H-L's attempt to justify the charges which I find objectionable, because I think they deliberately use red herrings. As a shareholder I'm in two minds about the charging structure itself. They've rightly anticipated the rise of the IT sector and decline of the UT (fund) sector, and are, reasonably enough, attempting to cash in on it. On the other hand, the very investors (IT holders) which they are clobbering are the more sophisticated ones who see the separate treatment of ITs (except in the H-L isa) for what it is. So the strategy is risky, imo.

[hoggetwood] 17/1/2014 17:37

Bombadil: thank you for this link. So H-L are clobbering those with SIPPs who hold both non-IT shares and ITs - in large enough amounts for the cappings to be relevant. No double jeopardy, though, if you hold just ITs, or just non-IT shares. Curious. Probably they've worked out that most IT holders do also hold non-IT shares, so will have to pay more - a sneaky way of hammering more sophisticated investors who know the advantages of ITs over UTs ("funds")! Such investors will know that, technically, ITs are simply shares and that there is no cost basis whatsoever for H-L distinguishing them from non-IT shares. They will therefore see the double jeopardy as deliberately punishing those who are wise enough to reject UTs in favour of ITs.

I note, though, that the double jeopardy doesn't seem to apply to their ISA. So I'm alright, Jack.

[bombadil79] 17/1/2014 12:37

Price decline may be as a result of this: http://www.sharesoc.org/pr53hargreaveslansdown.htmlLawson spells out how the changes may result in some customers paying double.However, I think it's unfair to overlook some of the other things introduced, such as the regular savings service. This will allow investors to buy as little as £50 worth of FTSE 350 for £1.50. This will hopefully attract customers who previously had to choose interactive investor or share plc for this kind of facility.

[hoggetwood] 15/1/2014 17:16

Thanks for your views. I think what they've done is a good compromise, but I can see why some people would see this (enforced) leap into the unknown as a good opportunity to take profits after a stonking run in the last few months. And today's share price drop wasn't exactly catastrophic. Next few days will be interesting.[Holder since launch]

[mintpenguin] 15/1/2014 14:24

Think they have done OK with the fee roll out......but not going to be the cheapest out there. If they had announced ultra low prices then city would have seen through that and growth to maintain profits might have been too steep. Pleasing shareholders and non shareholding clients is never easy. They have played it safe....and it looks ok to me. share price drop was expected. It had gone very well. Some consolidation to find its new range is just normal.

[hoggetwood] 15/1/2014 10:54

Does the share price reaction to the new pricing structure mean that people think hl have pitched the price of their services too low (short-term loss of profitability) or too high (potential loss of clients)?

Or - worst case - that under the new transparency rules they'd stand to lose both profitability and client share however they pitched their prices?

[hoggetwood] 27/12/2013 17:13

The more bitter the posters' comments on this board, the more the share price rises. Discuss.