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(Alliance News) - Hargreaves Lansdown PLC on Thursday said its revenue was higher in its first quarter thanks to "strong stockbroking revenues".
Shares in Hargreaves Lansdown were down 3.5% at 1,531.00 pence in London in morning trading.
The Bristol-based fund supermarket's revenue for the three months ended September 30 was GBP143.7 million, a 12% increase from the year before. This in spite of the FTSE All Share being down 18% for the comparative period.
Hargraves Lansdown explained that: "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."
Closing assets under administration for the period came to GBP106.9 billion, 2.8% higher than the opening AUA of GBP104.0 billion, thanks to a GBP2.1 billion positive market movement plus new business. For comparison, in the same period of 2019, the closing AUA of GBP101.8 billion was 2.5% higher than the opening AUA of GBP99.3 billion.
New business in the period was GBP800 million, down from GBP1.7 billion the year before - though the year before figure was also GBP800 million excluding back book transfers.
Hargreaves Lansdown said: "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 JP Morgan and Baillie Gifford of GBP900 million."
Chief Executive Chris Hill said: "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."
By Anna Farley; annafarley@alliancenews.com
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