(Alliance News) - Hargreaves Lansdown PLC on Thursday reported assets under administration growth in its third quarter, boosted by a pick-up in net new business.
Shares in the company traded 3.2% higher at 816.80 pence each in London on Thursday morning, the best FTSE 100 performer.
In the third quarter ended March 31, the retail investment platform said net new business rose 14% year-on-year to GBP1.6 billion from GBP1.4 billion. Quarter-on-quarter, net new business was up around 78% from GBP900 million.
Closing assets under administration rose around 3.9% to GBP132.0 billion, from GBP127.1 billion at the end of December. They were down 2.0% from GBP134.7 billion year-on-year, however.
The rise in assets under administration was helped by GBP3.3 billion in positive market movements over the recent quarter.
Revenue jumped 28% year-on-year to GBP188.1 million from GBP146.9 billion. Year-to-date revenue is 23% higher at GBP538.1 billion, which the FTSE 100 constituent put down to a continued rise in net interest margin. This more than offset a fall in share dealing volumes in the financial year so far.
Dealing volumes picked up quarter-on-quarter in the third quarter, but were still down on-year, Hargreaves said.
"Share dealing volumes have averaged 770,000 per month in the quarter, up 23% versus the previous quarter but 20% lower than the prior year, which saw a particularly elevated quarter for dealing volumes before investor confidence was hit hard by concerns over the conflict in Ukraine and cost of living issues," the company explained.
Hargreaves Lansdown reported net client growth of 23,000 during the quarter, picking up from 14,000 in the second quarter and 17,000 in the first, taking it to 1.8 million clients.
Chief Executive Officer Chris Hill said: "Macroeconomic uncertainty continues but the improved activity demonstrates that as confidence returns, HL is well positioned to grow and support new and existing clients on their investment and savings journeys."
By Eric Cunha, Alliance News news editor
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Hargreaves Lansdown (HL.)
