Share Name Share Symbol Market Type Share ISIN Share Description
Hargreaves Lansdown Plc LSE:HL. London Ordinary Share GB00B1VZ0M25 ORD 0.4P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  14.00 0.81% 1,739.00 1,730.00 1,732.00 1,746.50 1,701.00 1,746.50 781,210 16:35:29
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 480.5 305.8 52.1 33.4 8,248

Hargreaves Lansdown PLC Trading Statement

10/10/2019 7:00am

UK Regulatory (RNS & others)


Hargreaves Lansdown (LSE:HL.)
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2 Months : From Sep 2019 to Nov 2019

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RNS Number : 3497P

Hargreaves Lansdown PLC

10 October 2019

Trading update

10 October 2019

Hargreaves Lansdown plc ('the Group') today publishes a trading update in respect of the three month period to 30 September 2019 ('the period'). The comparatives are for the period from 1 July 2018 to 30 September 2018 ("2018").

Highlights

   --       Net new business of GBP1.7 billion in the period 
   --       Net new clients of 35,000 

-- Assets under administration ("AUA") of GBP101.8 billion as at 30 September 2019, up 3% since 30 June 2019

   --       Net revenue for the period of GBP128.1 million (2018: GBP120.8 million), up 6% 

Chris Hill, Chief Executive Officer, commented:

"I'm pleased to report a solid start to our financial year for client, net new business and revenue growth. We continue to focus on our strategy of delivering excellent service, information and value during these continued uncertain times for our clients."

Assets under administration and net new business

 
 GBP billion             Three months       Three months 
                      to 30 September    to 30 September 
                                 2019               2018 
 Opening AUA                     99.3               91.6 
 Net new business                 1.7                1.3 
 Market movements                 0.8                1.2 
                    -----------------  ----------------- 
 Closing AUA                    101.8               94.1 
                    -----------------  ----------------- 
 

Net new business was GBP1.7 billion during the period (2018: GBP1.3bn). This was driven through a variety of channels including organic new client growth, ongoing wealth consolidation onto our platform from existing clients, continued flows into our cash management service "Active Savings" and direct back book transfers from J.P. Morgan and Baillie Gifford (GBP0.9bn). We have, however, seen new business in the period being impacted by weak investor sentiment arising from continuing Brexit and political uncertainty in the UK and wider global macro issues such as trade tariffs.

Rising stock markets have led to a positive market movement of GBP0.8 billion, which combined with net new business has driven AUA to a record GBP101.8 billion as at 30 September 2019.

We welcomed 35,000 new clients in the period (2018: 29,000), taking active client numbers to 1,260,000.

Net revenue

Net revenue for the period was GBP128.1 million, up 6% on last year, benefitting from higher AUA levels due to net new business and market growth. Having gone through a period of elevated investment in people, digital marketing and technology in 2017 and 2018 financial years, which has been validated by our net new business flows, net new clients, retention rates and increased market share, we have since been deliberately moderating the rate of investment. Whilst we anticipate that costs will typically be aligned to client number growth, we are mindful of the external market environment, and hence remain watchful on costs despite the client and revenue growth experienced during the period.

Contacts:

 
 Investors                         Media 
 Philip Johnson, Chief Financial   Danny Cox, Head of Communications 
  Officer                           +44(0)117 317 1638 
  James Found, Head of Investor 
  Relations 
  +44(0)117 988 9898 
 

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.

LEI Number: 2138008ZCE93ZDSESG90

Assets under administration

 
 Average AUA            3 months        2 months       4 months        3 months           3 months 
  (GBPbillion)       to 30 September    to 30 June    to 30 April    to 31 December    to 30 September 
                          2019             2019          2019             2018              2018 
 Funds                    54.6            53.1           50.2            48.1               52.0 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 Shares                   34.6            33.3           31.4            29.5               32.0 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 Cash                     11.1            10.7           10.5            10.2               9.7 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 HL Funds                 9.3              9.4           9.1              8.9               9.6 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 Active Savings           1.2              0.9           0.6              0.3 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 Double count(1)         (9.2)            (9.3)         (9.0)            (8.9)             (9.5) 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 Total                   101.6            98.1           92.8            88.1               93.8 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 
 
 AUA (GBPbillion)     As at 30     As at 30     As at 30     As at 31     As at 30 
                      September    June 2019    April 2019    December    September 
                        2019                                    2018        2018 
 Funds                  54.2         53.8         52.7         46.6         52.0 
                    -----------  -----------  ------------  ----------  ----------- 
 Shares                 34.9         33.7         33.4         28.5         32.2 
                    -----------  -----------  ------------  ----------  ----------- 
 Cash                   11.3         10.8         10.9         10.4         9.7 
                    -----------  -----------  ------------  ----------  ----------- 
 HL Funds               9.2          9.4           9.4          8.6         9.6 
                    -----------  -----------  ------------  ----------  ----------- 
 Active Savings         1.3          1.0           0.8          0.4         0.1 
                    -----------  -----------  ------------  ----------  ----------- 
 Double count(1)       (9.1)        (9.4)         (9.4)        (8.6)       (9.5) 
                    -----------  -----------  ------------  ----------  ----------- 
 Total                 101.8         99.3         97.8         85.9         94.1 
                    -----------  -----------  ------------  ----------  ----------- 
 

(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.

 
 AUA (GBPbillion)         3 months        2 months       4 months        3 months           3 months 
                       to 30 September    to 30 June    to 30 April    to 31 December    to 30 September 
                            2019             2019          2019             2018              2018 
 Opening AUA                99.3            97.8           85.9            94.1               91.6 
                     -----------------  ------------  -------------  ----------------  ----------------- 
 Underlying 
  net new business          1.7              1.9           2.9              1.2               1.3 
                     -----------------  ------------  -------------  ----------------  ----------------- 
 Market movements           0.8             (0.4)          9.0             (9.4)              1.2 
                     -----------------  ------------  -------------  ----------------  ----------------- 
 Closing AUA               101.8            99.3           97.8            85.9               94.1 
                     -----------------  ------------  -------------  ----------------  ----------------- 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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October 10, 2019 02:00 ET (06:00 GMT)

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