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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
  0.00 0.0% 1,557.00 1,557.00 1,558.50 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 55.1 378.3 66.1 23.6 7,385

Hargreaves Lansdown PLC Trading Statement

08/10/2020 7:00am

UK Regulatory (RNS & others)


Hargreaves Lansdown (LSE:HL.)
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RNS Number : 4357B

Hargreaves Lansdown PLC

08 October 2020

Trading update

8 October 2020

Hargreaves Lansdown plc ('the Group') today publishes a trading update in respect of the three month period to 30 September 2020 ('the period'). The comparatives are for the period from 1 July 2019 to 30 September 2019 ("2019").

Highlights

   --       Net new business of GBP0.8 billion in the period 
   --       Net new clients of 31,000 

-- Assets under administration ("AUA") of GBP106.9 billion as at 30 September 2020, up 3% since 30 June 2020

   --       Revenue for the period of GBP143.7 million (2019: GBP128.1 million), up 12% 

Chris Hill, Chief Executive Officer, commented:

"Today we report a good start to our financial year, with growth in clients, assets and revenue. These results are against the ongoing backdrop of market uncertainty and highlight the resilience of our business model and client proposition. We are confident that the strategy we have invested in, with our focus on the needs of UK investors and savers and delivering the highest level of client service, means that we continue to be well positioned to deliver continued attractive long-term growth."

Assets under administration and net new business

 
 GBP billion             Three months       Three months 
                      to 30 September    to 30 September 
                                 2020               2019 
 Opening AUA                    104.0               99.3 
 Net new business                 0.8                1.7 
 Market movements                 2.1                0.8 
                    -----------------  ----------------- 
 Closing AUA                    106.9              101.8 
                    -----------------  ----------------- 
 

Net new business was GBP0.8 billion during the period (2019: GBP1.7bn, GBP0.8bn excluding back book transfers). This is a pleasing result given the period has seen weakening investor sentiment arising from COVID-19 and the re-emergence of Brexit uncertainty. As noted, last year benefited from direct back book transfers from J.P. Morgan and Baillie Gifford of GBP0.9 billion.

During the quarter, flows into Active Savings were hampered by the market leading rates on offer from the government backed NS&I. However, since NS&I cut their interest rates in mid-September we have seen a marked impact on flows back into Hargreaves Lansdown's Active Savings.

A positive market movement of GBP2.1 billion, combined with net new business has driven AUA to GBP106.9 billion as at 30 September 2020.

We welcomed 31,000 net new clients in the period (2019: 35,000, 17,000 excluding direct back book transfers), taking active client numbers to 1,443,000.

Revenue

Revenue for the period was GBP143.7 million, up 12% on last year despite, on average, the FTSE All Share being down versus the comparative period by 18%. Revenue, was in part, driven by strong stockbroking revenues from continued elevated share dealing volumes . Although down on the peak levels seen earlier this year share dealing volumes across the quarter remained high and averaged 980,000 deals per month.

Contacts:

 
 Investors                         Media 
 Philip Johnson, Chief Financial   Danny Cox, Head of External 
  Officer                           Relations 
  James Found, Head of Investor     +44(0)7989 672071 
  Relations 
  +44(0)7970 066634 
 

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 
                          2020             2020          2020             2019              2019 
 Funds                    52.4            51.1           49.4            54.6               54.6 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 Shares                   37.6            35.8           32.5            35.4               34.6 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 Cash                     13.5            13.6           13.2            11.3               11.1 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 HL Funds                 7.9              8.0           8.2              9.2               9.3 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 Active Savings           2.2              2.2           1.9              1.5               1.2 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 Double count(1)         (7.8)            (7.9)         (8.1)            (9.1)             (9.2) 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 Total                   105.8            102.8          97.1            102.9             101.6 
                   -----------------  ------------  -------------  ----------------  ----------------- 
 
 
 AUA (GBPbillion)     As at 30     As at 30     As at 30     As at 31     As at 30 
                      September    June 2020    April 2020    December    September 
                        2020                                    2019        2019 
 Funds                  52.8         51.7         47.9         55.9         54.2 
                    -----------  -----------  ------------  ----------  ----------- 
 Shares                 38.2         36.4         32.5         36.5         34.9 
                    -----------  -----------  ------------  ----------  ----------- 
 Cash                   13.5         13.6         14.1         11.1         11.3 
                    -----------  -----------  ------------  ----------  ----------- 
 HL Funds               7.8          8.0           7.7          9.4         9.2 
                    -----------  -----------  ------------  ----------  ----------- 
 Active Savings         2.3          2.2           2.1          1.6         1.3 
                    -----------  -----------  ------------  ----------  ----------- 
 Double count(1)       (7.7)        (7.9)         (7.6)        (9.3)       (9.1) 
                    -----------  -----------  ------------  ----------  ----------- 
 Total                 106.9        104.0         96.7         105.2       101.8 
                    -----------  -----------  ------------  ----------  ----------- 
 

(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 
                              2020             2020          2020             2019              2019 
 Opening AUA                 104.0            96.7          105.2            101.8              99.3 
                       -----------------  ------------  -------------  ----------------  ----------------- 
 Net new business(1)          0.8              1.4           4.0              0.6               1.7 
                       -----------------  ------------  -------------  ----------------  ----------------- 
 Market movements             2.1              5.9          (12.4)            2.8               0.8 
                       -----------------  ------------  -------------  ----------------  ----------------- 
 Founder transfer(2)           -                -           (0.1)              -                 - 
                       -----------------  ------------  -------------  ----------------  ----------------- 
 Closing AUA                 106.9            104.0          96.7            105.2             101.8 
                       -----------------  ------------  -------------  ----------------  ----------------- 
 

(1) Net new business in the 3 months to 30 September 2019 includes GBP0.9bn of flows acquired from J.P. Morgan and Baillie Gifford direct back books

(2) Net new business excludes the withdrawal of GBP110 million of Hargreaves Lansdown plc placing proceeds during the period that were held by a founder.

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.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

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