(Alliance News) - Hargreaves Lansdown PLC on Thursday reported an increase in assets under administration, though net new business growth ebbed in the first half of its financial year.
Shares in Hargreaves Lansdown fell 7.3% to 747.00 pence each in London on Thursday morning.
The Bristol, England-based financial services firm said in the first half of its financial year ending June 30, net new business totalled GBP1.0 billion, down 38% from the GBP1.6 billion the year before.
"Our gross inflows to the platform were up year on year, however, our outflows were up too, meaning that overall, our net new business came in at GBP1.0 billion," the firm explained.
Hargreaves Lansdown added that outflows were the highest in "products that our clients use for more transient saving and investing".
Assets under administration amounted to GBP142.2 billion, a rise of 12% from GBP127.1 billion a year earlier and up 6% since June.
Revenue for the half-year amounted to GBP368.2 million, a rise of 5.2% on-year from GBP350.0 million. Pretax profit, however, fell 7.6% to GBP182.5 million from GBP197.6 million.
The firm lifted its interim dividend by 3.9% to 13.2 pence from 12.7 pence a year ago,
Looking ahead, Hargreaves Lansdown said: "We are re-iterating our guidance of 4% growth in our ordinary dividend for the full year."
"As we begin the second half of the year, we have the all-important tax year end season ahead and whilst the current uncertain economic environment is likely to remain and weigh on investor confidence, we will do all that we can to support our clients to make the most of their tax allowances, improve their financial resilience and achieve their financial goals."
It added that it expects underlying cost growth at the lower end of its 9% to 11% guidance range.
Chief Executive Officer Dan Olley said: "As the largest wealth platform in the UK, looking ahead, ours is a large and growing market with clear client needs. We have the scale needed to succeed and we have the right strategy and ambition to accelerate our growth."
By Sabrina Penty, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Hargreaves Lansdown (HL.)
