Hargreaves Lansdown PLC Interim Management Statement (2525T)

TIDMHL.

RNS Number : 2525T

Hargreaves Lansdown PLC

11 October 2017

Trading update

11 October 2017

Hargreaves Lansdown plc ('the Group') today publishes a trading update in respect of the three month period to 30 September 2017 ('the period').

Highlights

   --       Net new business of GBP1.54* billion in the period 
   --       Net new clients of 30,000 

-- Assets under administration ("AUA") of GBP82.0 billion as at 30 September 2017, up 4% since 30 June 2017

   --       Year-to-date total net revenue of GBP104.1 million (2016: GBP90.5 million), up 15% 

Chris Hill, Chief Executive Officer, commented:

"I'm pleased to report a solid start to the new financial year for net new business and revenue. We continue to place clients at the centre of what we do and our relentless focus on the level of service that we provide is enabling both existing and new clients to save and invest with confidence."

Assets under administration and net new business

 
 GBP billion              Three months 
                       to 30 September 
                                  2017 
 Opening AUA                      79.2 
 Net new business*                 1.5 
 Market movements                  1.3 
                     ----------------- 
 Closing AUA                      82.0 
                     ----------------- 
 

Net new business of GBP1.54 billion for the period was driven by improved market sentiment, continued investment in our digital marketing presence, an increase in client numbers and their continued wealth consolidation onto our platform. We also benefited from significant transfer activity relating to operational issues on a competitor platform, showing the benefit of our strong reputation for client service. Combined with positive market growth across the period, AUA rose to GBP82.0 billion as at 30 September 2017.

We welcomed 30,000 new clients in the period, taking active client numbers to 983,000.

Net revenue

Net revenue for the period was GBP104.1 million, up 15% on last year, benefitting from net new business and higher market levels.

* Note: Stephen Lansdown sold GBP188m worth of HL shares via an accelerated bookbuild after markets closed on 28 September. These shares were held in his Fund & Share account and withdrawn from the Hargreaves Lansdown platform on 29 September with cash settlement on 3 October. As this transaction straddled the period end it has been treated as if both the sale and cash settlement occurred after the period end.

Contacts:

 
 Investors               Media 
 Philip Johnson, Chief   Danny Cox, Head of Communications 
  Financial Officer       Chris Hill, Chief Executive 
  James Found, Head of    Officer 
  Investor Relations      [phone] 
  [phone] 
 

Forward looking statements

This announcement contains forward-looking statements with respect to the financial condition, results and business of the Group. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend on circumstances, that will occur in the future. The Group's actual results may differ materially from the results expressed or implied in these forward-looking statements. Nothing in this announcement should be construed as a profit forecast. This announcement is unaudited. This statement should not be seen as a promotion or solicitation to buy Hargreaves Lansdown plc shares. It should be remembered that the value of shares can fall as well as rise and therefore you could get back less than you invested.

Assets Under Administration

 
 Average                  3 months        2 months       4 months        3 months           3 months 
  AUA (GBPbillion)     to 30 September    to 30 June    to 30 April    to 31 December    to 30 September 
                            2017             2017          2017             2016              2016 
-------------------  -----------------  ------------  -------------  ----------------  ----------------- 
 Funds                      46.5            45.7           42.2            39.1               37.7 
-------------------  -----------------  ------------  -------------  ----------------  ----------------- 
 Shares                     26.7            25.7           24.2            22.1               21.6 
-------------------  -----------------  ------------  -------------  ----------------  ----------------- 
 Cash                       8.2              8.1           7.7              7.4               7.1 
-------------------  -----------------  ------------  -------------  ----------------  ----------------- 
 HL Funds                   8.8              8.8           8.1              7.2               6.9 
-------------------  -----------------  ------------  -------------  ----------------  ----------------- 
 Double 
  count(1)                 (8.7)            (8.7)         (8.0)            (7.2)             (6.8) 
-------------------  -----------------  ------------  -------------  ----------------  ----------------- 
 Total                      81.5            79.6           74.2            68.6               66.5 
-------------------  -----------------  ------------  -------------  ----------------  ----------------- 
 
 
 AUA (GBPbillion)     As at 30     As at 30     As at 30     As at 31     As at 30 
                      September    June 2017    April 2017    December    September 
                        2017                                    2016        2016 
------------------  -----------  -----------  ------------  ----------  ----------- 
 Funds                  46.6         45.6         44.1         39.9         38.3 
------------------  -----------  -----------  ------------  ----------  ----------- 
 Shares                 27.1         25.4         25.0         22.7         21.9 
------------------  -----------  -----------  ------------  ----------  ----------- 
 Cash                   8.2          8.1           7.8          7.3         7.3 
------------------  -----------  -----------  ------------  ----------  ----------- 
 HL Funds               8.8          8.8           8.5          7.5         7.0 
------------------  -----------  -----------  ------------  ----------  ----------- 
 Double 
  count(1)             (8.7)        (8.7)         (8.4)        (7.4)       (6.9) 
------------------  -----------  -----------  ------------  ----------  ----------- 
 Total                  82.0         79.2         77.0         70.0         67.6 
------------------  -----------  -----------  ------------  ----------  ----------- 
 

(1) All HL Funds are held in Vantage or the Portfolio Management Service (PMS) and are included in the Funds category of the table, with the exception of a small balance held off platform by third parties. To avoid double counting the amount held in Vantage or PMS has been deducted.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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October 11, 2017 02:00 ET (06:00 GMT)