Hargreaves Lansdown Share Discussion Threads

[dickbush] 22/2/2024 07:49

Whether you are bullish or bearish depends on the way you read this part of the statement.

"Underlying costs were in line with our guidance coming in at £161.0 million (H1 2023: £146.1m) and underlying profit before tax increased 5% to £221.5 million (H1 2023: £211.9m).

Total strategic spend in the period increased to £24.7 million (H1 2023: £23.4m) as we increased the pace of our delivery. As part of my review, we have simplified our technology roadmap by adopting a more modular approach to delivery and rationalised our technology vendors. As a result, we have recognised an impairment charge of £14.4 million against two specific assets previously capitalised. We have also incurred £2.9 million restructuring costs in relation to the reset of the Executive and Digital Leadership teams.

As a result, statutory profit before tax decreased by 8% to £182.5 million (H1 2023: £197.6m)."

That £14.4 mil charge looks like the cost of telling the IT people that the company is not going to let them keep working to retirement on the various projects they have been asked to complete. Anyone with any experience of IT knows there is no incentive to work on time and within budget.

This is the kind of house cleaning I would expect from new management. HOPEFULLY, they won't have to revisit this issue regularly.

[lomax99] 22/2/2024 07:48

Record AUM, Revenues up and Underlying Profit up, and on a fairly miserly rating.

[rimau1] 22/2/2024 07:38

I think that is a miss on AUA inflows at £1bn vs £1.6bn PY, anyone know analyst consensus on net new business?

[growthpotential] 21/2/2024 18:12

Looking for a big short squeeze tomorrow!

[bend1pa] 21/2/2024 11:23

I think the market has already been telling you which direction the share is headed.

[ochs] 21/2/2024 10:44

To be honest being in the FTSE 100 doesn't seem so important at the moment. When we were in it the share price carried on drifting downwards - I think trackers hold a proportion similar to the weighting of the index, so as the HL share price fell they would all have been reducing their holdings as HL made up a smaller and smaller proportion of the FTSE 100 market cap as a whole.

From a charting point of view the recent intra-day high of 844.5p means we failed to get a daily close above the 841.75p resistance level (62% Fibonacci retracement of the 944p to 676.5p down move). Support now comes in at 780p, which is the 38% Fibonacci of the 676.5p to 844.5p up move.

Clearly tomorrow's half-year results RNS will have a huge impact as to whether we head back up and test 841.75p again or move down towards 780p and lower...

[stoopid] 20/2/2024 12:41

820ish gets them back in the FTSE100.... then tracker funds need to buy again....

[bend1pa] 19/2/2024 17:26

I don't think any good results for HL would please the market, which does seem to have it in for this company, regardless. (A lot of other companies also seem in the same boat).

Any initial positive reaction to good results will soon be retraced. So 3 months from now back below 800p, and probably in less time than that.

[ochs] 16/2/2024 17:14

@lomax99 yes, the recent rise could be connected to Woodford finally coming towards an end.

@Stoopid yes, there's a risk that if the market isn't impressed on 22nd we could be right back down around £7 again!

[stoopid] 16/2/2024 08:31

Looks like the month long rise has stalled for now.Down to the half yearlys on the 22nd now. Any hint they are bad will see HL drop like a stone again.

[lomax99] 16/2/2024 06:39

Interesting comment, in today's MoneyWeek, on the end of a snippet entitled 'Short positions.... Neil Woodford saga finally ends':'Approval of the scheme effectively pre-empts lawsuits against the fund's administrator, Link Fund Solutions, and possibly other connected parties, such as Hargreaves Lansdown, which promoted the fund.'

[ochs] 15/2/2024 12:08

Thanks. I think a buy back is unlikely (although they have lots of cash) but it would be helpful to hear if there are plans to re-start Special Dividends once the initial Digital investment announced 2 years ago is complete.

I fear growth in new business will have slowed, and dealing volumes will be down. The bright spot should still be a good margin and profit from cash holdings, but if this is too good it could encourage unwelcome press coverage and pressure from the FCA.

It would be good to get an update on how the all important end of tax year period has started - February is often a busy month.

[lomax99] 15/2/2024 09:56

A couple of shorters starting to reduce, down by 0.12% from 6.87 to 6.75 in the last couple of days - still a long way still to go.

[lomax99] 14/2/2024 14:40

I'd like to hear how the 2 year Digital investment initiative is progressing (timeline/cost), and confirmation when the dual running cost element will cease. At some point a review (incl expected benefits) would be appreciated.They need to build in scope for more regular ongoing IT investment going forward.

[dickbush] 14/2/2024 14:01

I would be happy with double-digit growth in eps and a positive statement about the growth of Revenue from new or relatively new products. Announcing a buy-back of their shares would be timely.

[ochs] 14/2/2024 10:24

What are we expecting from half-year results on 22 Feb?

[giltedge1] 14/2/2024 08:24

Good as price has increased will be sweating 6.8% short I found on IC website, so over 1 months trading to buy back, will be interesting.

[lomax99] 13/2/2024 13:49

Not sure the shorts are notably unwinding, unless not yet reported - the last movement was an increase on 9th Feb.

[dickbush] 13/2/2024 13:39

US CPI data today discouraging for those anticipating a cut in rates soon. Headline CPI 3.1% y/y and latest 6 months annualised 3.4%. Core 3.9% y/y and latest 6 months annualised also 3.4%.

Higher rates for longer not a bad thing for HL's 2nd half through June 30th. I note that US petrol prices are up in Feb v Jan.

[stoopid] 13/2/2024 10:10

Also because the Woodford saga appears to be over apart from the odd one or two things and HL appear not to have incurred any liabilities from it.Also, back in the FTSE 100 soon, which may mean funds buying in again....

[giltedge1] 13/2/2024 08:15

Nice recovery undervalued for a long time, now shorts unwinding helping rise. Hopefully consolidate at this level then push higher, all fundamentals point to £10, PE, Dividend Yield, Cash on Balance Sheet No. 1 Broker.

[evianone] 09/2/2024 14:09

I’m very happy with the service compared to others in the industry as a family we have multi accounts with other companies, if you want to compare service look at the people who supply electric gas phone etc very poor service, you hardly ever get a anybody to answer the phone or emails ☹️
I’m long so I havean interest 😂

[dickbush] 09/2/2024 13:54

Not much of a case against HL on the rates it pays when the comparators are the banks.