Hargreaves Lansdown Share Discussion Threads

[giltedge1] 20/10/2022 11:18

About time Peter Hargreaves, stood up to the plate, should have made comments a year ago, still a great company, low cost base, cash on balance sheet etc & tapping into long term wealth market. Only downside for me seem uncompetitive on Unit Trust Fees, .0045% others do flat fee?. (What do others think of UT fees?). Will look to buy back if approach £7.00, great safe dividend yield & a geared play on recovery.

[imastu pidgitaswell] 20/10/2022 11:04

It's the CEO's job to set a strategy and deliver it. It's the chair's (part-time) job to hold them to account and make a change when they fail.

Perfectly good argument that that is what she has done - the strategy has not been good, it has been to milk clients for as much as they can get away with while costs and service all the while. They have then changed tack, with the February update (which was Chris Hill's strategy) and it has not been well received. So now she is acting and he is going (believe the 'retiring' at 51 one if you wish.)

There is an argument that she should have acted sooner, given the share price performance, but a factor of that is that it was way overvalued in the first place at £25 or so, which is what he is complaining about. It is still valued in the high teens in terms of earnings multiples - not cheap.

Also a factor is the pandemic - without it he might have been disposed of sooner.

I don't know if she has done a good job or not - but the share price performance is down to the overvaluation in the first place and also Chris Hill's failures to lead and deliver.

[growthpotential] 20/10/2022 10:42

I agree, Oppenheimer must go now

[edmondj] 20/10/2022 06:49

A row has broken out between the billionaire co-founder of Hargreaves Lansdown and the FTSE 100 company after he accused the group's chairwoman of overseeing a "diabolical" performance by the business. Peter Hargreaves, 76, who is the biggest shareholder in the DIY investment platform with a stake of almost 20%, told The Times this evening that he believed Deanna Oppenheimer, 64, should step down from the board of the Bristol-based company. - The Times

[ochs] 17/10/2022 17:09

I think the trading statement was better than many had expected, especially the upgrade to full year revenue margin guidance due to increased margin on cash.

However the £0.7b of net new business was disappointing, and with £0.7b into Active Savings there was very little growth (if any) in the core Platform business. Of the £0.7b into Active Savings 73% was new money to HL which is encouraging.

[lomax99] 17/10/2022 12:46

Given the market backdrop, today's trading statement was encouraging.

[ochs] 17/10/2022 12:32

790p, nice recovery from the over-sold lows. Now depends on US at 2:30.

[lomax99] 17/10/2022 11:39

Patience can be rewarding, I have held CVSG for c 15 years, buying a fair proportion of my holding sub £1.

[imastu pidgitaswell] 17/10/2022 10:11

I don't necessarily disagree that they need to invest some money - as you say, their service levels have deteriorated over time (I'm a client, not a holder), as they have taken decisions to cut costs while increasing charges.

The issue is whether they are 'investing' in the right places. As I said in February, they are openly stating that they will spend more, but increase margins. They will therefore be increasing charges - as if the competition does not exist and will not be providing better service and for less.

They seem to want to believe their own publicity - and that statement from Chris Hill (and him being allowed to make it) reinforces that view. It's all bit burning platform - shades of Nokia and Blackberry, in (eventually) realising that there is a fundamental issue, but not knowing what to do about it.

And of course, that is all without even touching on the Woodford issues.

[ochs] 17/10/2022 09:57

@imastu pidgitaswell I wouldn't bin it, but a bit like the mini-budget they need a new man to take a look with fresh eyes. The way it was communicated to the market clearly didn't work.

There are lots of things at HL that need sorting out - the service level is not what it used to be - despite what Chris Hill tells himself. The website has hardly changed for over 10 years, has less functionality than a few years ago (eg. no volume or buy/sell trade info) and isn't as good as ii who offer a cheaper service.

[imastu pidgitaswell] 17/10/2022 09:46

I can't see that anything has changed since February - except for the share price...




The thing that strikes me is the arrogance of Chris Hill - having made a complete car crash of things, he actually believes that his strategy that he outlined and which was essentially rejected by the market, will be followed by a new CEO.

"I have been privileged to lead the Company over the last six years through a period of growth and also an unprecedented time of change. I set in train a comprehensive strategy to ensure the company remains at the forefront of wealth management, including providing clients with the best digital tools. Having put in place strong foundations that are already delivering results, including an exceptional leadership team, it will be time after a thoughtful transition to hand over to my successor to take the company through the next phase of embedding this strategy."


I, I, I, me, me me. Clown.

The first thing they should do is throw his 'strategy' in the bin.

[ochs] 17/10/2022 09:40

According to my charts we need to close above 759p today for the previous support to hold, if not the next support isn't really until 621p - that's based on the long term high of 2,448p (May 2019) to the all time low of 123.5p (16 July 2008).

[ochs] 17/10/2022 09:26

@lomax99 I agree with some of your points, but you need to be extremely patient (and have deep pockets!) to keep topping up as it drops for years & years. Is the yield still safe now with the pending court action?

I'm hopeful Active Savings will really take off over the next year or 2 - but it's been a slow burner. I also don't think the name is helpful in persuading cautious savers to move their money - the word "Active" could suggest 'risk' to the uninitiated. They should probably rename it "HL Savings" or "Secure Savings".

Having said all of that I've bought some at 751p, as I'd expect a bounce, but that's more of a short term trade and will stop it out if it fails.

[ochs] 17/10/2022 09:18

Whilst Hill could blame his investment department for the poor oversight of the Woodford fund - and subsequent non-existent communication with clients, he was ultimately responsible as CEO. The PLC board clearly didn't have the right checks and balances in place and were happy to let people like Dampier & Guardhouse (who'd been there too long) run it like it was their own business - they both displayed rather an arrogant attitude.

I'd expect HL to settle the RGL thing out of court, and try and draw a line asap, especially with Hill now going. Ideally the board and shareholders won't want him to stay until anywhere near November 2023!

[porsche1945] 17/10/2022 09:11

All the U.K. asset managers are heading back to 2012 price levels, now a major recession/correction going on. Just sit in cash and pick up the interest for a while as these cycles take years to play out, ie property started falling in 07 and was still in the toilet 6 years later, uk looks particularly at risk, a general election would help, tories have been toxic.

[lomax99] 17/10/2022 09:09

Small top up here, now yielding 5.2%. Happy to add significantly more, progressively, on further meaningful drops.

[lomax99] 17/10/2022 09:02

Yes and no. I have made more than enough elsewhere. I believe in the longer term prospects for this business. The seeds of the W fiasco pre-dates Chris Hill. The market is fickle, that does not mean the strategy is wrong. The business is going through a significant transformation, Active Savings is an example of just one innovative initiative which has been a resounding success.

[ochs] 17/10/2022 07:50

@lomax99 are you serious? This is a man who's trashed the share price over the past 6 years and who's new 'strategy' was roundly rejected by the market even if they had some fancy slides and trendy business talk in the presentations.

Do you enjoy losing money?

[privileged] 17/10/2022 07:49

Ha, my RNS provider flashed the CEO leaving news but not the trading statement until after i sold out (at 797p average fortunately!)

In essence they have upgraded revenue by some £60m for FY23 (but higher cash lower equities margins), which on the face of it is a roughly 10% profit upgrade which is pretty decent i'd have thought. AUM pretty much where it was at 30 June and positive news there were no outflows, just few inflows either.

CEO going and court case settlement at some point puts lines in the sand. Easier for predator to pounce also
Now hoping this falls further into the low £7s and then will rebuy! (fingers crossed, sorry holders but i have sweated a lot every day watching this one the last few months on a massive holding so in a way glad to be out - so suspect it'll be the start of a large rise now!)

[lomax99] 17/10/2022 07:13

I will be sorry to see Chris Hill go.

[privileged] 17/10/2022 07:07

Yep, although overall probably good news to draw lines under the sand on court case and CEO at the time leaving, i expect(ed) this to be down c8% this morning on the news. I'm out at these levels now for a bit :(

Mental note never to then go long on something you always shorted just because it 'now looks cheap at the reset valuation'. Thankfully with the divi wasn't far off breakeven in the end

[saltaire111] 17/10/2022 06:56

Chris Hill cashing in his chips and running to the hills!

[growthpotential] 16/10/2022 20:41

if a fund invested in blew up, just take the hit, that's investing

[rhythmnblues] 16/10/2022 15:48

From the Mail on Sunday today

Hargreaves Lansdown set for High Court over £3.8bn Neil Woodford funds meltdown: Dramatic breakthrough brings hope for thousands of victims