(Alliance News) - Hargreaves Lansdown PLC on Thursday said it has made a "solid start" to its new financial year with growth in first quarter revenue and net new business.
Shares were 1.2% higher at 1,838.00 pence each in London soon after the open.
The fund supermarket reported net new business of GBP1.7 billion for the three months to September 30, up from GBP1.3 billion in the year-ago period, with net new clients of 35,000. Positive stock market movements added GBP800 million to assets under administration, versus GBP1.2 billion a year ago.
Assets under administration at the period-end totalled GBP101.8 billion, up on GBP99.3 billion as at June 30 and GBP94.1 billion a year ago.
Hargreaves Lansdown said first-quarter new business was driven through a variety of channels including organic growth, ongoing wealth consolidation onto the company's platform by existing clients, continued fund inflows into cash management service "Active Savings" and direct book transfers from JP Morgan and Baillie Gifford.
New business, however, was dented by weak investor sentiment due to continuing Brexit and political uncertainty in the UK and wider global economic issues such as US-China trade war, the company added.
First quarter net revenue amounted to GBP128.1 million, up 6% year-on-year, benefiting from new business and market growth.
Hargreaves Lansdown said it remains "watchful" on costs due to the external market environment and having gone through a period of increased investment in people, digital marketing and technology in financial 2017 and 2018. The company said however it anticipates overall costs to be aligned to growth in client numbers.
"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," said Chief Executive Chris Hill.
Back in June, Hill "expressed his regret" for the "distress, uncertainty and inconvenience" caused by fund manager Neil Woodford freezing redemptions from his funds, which had been included in the Hargreaves Wealth 50 list.
Hill made no further comment on Woodford in his statement Thursday.
By Tapan Panchal; tapanpanchal@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.