Last checked at 15 May 2018 07:00
Trading update
15 May 2018
Hargreaves Lansdown plc ('the Group') today publishes a trading update in respect of the four month period to 30 April 2018 ('the period').
Highlights
· Net new business of £3.3 billion in the period
· Year to date net new business of £6.6 billion*
· Net new clients of 60,000
· Assets under administration ("AUA") of £88.8 billion as at 30 April 2018
· Year-to-date total net revenue of £366.6 million up 16%
Chris Hill, Chief Executive Officer, commented:
"Hargreaves Lansdown had another good tax year end, delivering strong net new business of £3.3 billion over the busiest time of our year and welcoming another 60,000 net new clients. We have continued to invest in our helpdesk, operations and technology teams and I'm pleased that the consequence of this is that we are able to support stronger volumes of client activity whilst maintaining our leading reputation for client service. We believe continuing to make investments in client service and technology is crucial to the ongoing success of Hargreaves Lansdown."
Assets under administration and net new business
£ billion | Four months to 30 April 2018 | Ten months to 30 April 2018 | |
Opening AUA | 86.1 | 79.2 | |
Underlying net new business | 3.3 | 6.6 | |
Market movements | (0.6) | 4.0 | |
Founder transfer* | - | (1.0) | |
Closing AUA | 88.8 | 88.8 |
Net new business was £3.3 billion during the period (2017: £3.3bn), taking year to date net inflows to £6.6 billion (2017: £5.6bn). This was driven by increased digital marketing, ongoing wealth consolidation onto our platform, a continuation, albeit on a reduced scale, of transfers from a competitor platform and a small direct back book transfer from Old Mutual. We welcomed 60,000 net new clients in the period, taking active client numbers to 1,075,000. Despite negative market growth and the impact this had on investor sentiment and flows, AUA rose to £88.8 billion as at 30 April 2018.
Net revenues
Net revenue for the period was £150.6 million (2017: £130.9m), benefitting from net new business, higher market levels than last year and strong share dealing volumes. This has resulted in year to date net revenue of £366.6 million (2017: £315.7m), 16% higher than last year.
*Year to date net new business excludes the transfer off the Vantage platform of £902 million of Hargreaves Lansdown plc shares and the withdrawal of £77 million of Hargreaves Lansdown plc placing proceeds during the period that were held by a founder.
Contacts:
Investors | Media |
Philip Johnson, Chief Financial Officer James Found, Head of Investor Relations +44(0)117 988 9898 | Danny Cox, Head of Communications Chris Hill, Chief Executive Officer +44(0)117 317 1638 |
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 (£billion) | 4 months to 30 April 2018 | 3 months to 31 December 2017 | 3 months to 30 September 2017 | 2 months to 30 June 2017 | 4 months to 30 April 2017 | 3 months to 31 December 2016 | 3 months to 30 September 2016 |
Funds | 48.5 | 48.2 | 46.5 | 45.7 | 42.2 | 39.1 | 37.7 |
Shares | 28.6 | 27.9 | 26.7 | 25.7 | 24.2 | 22.1 | 21.6 |
Cash | 9.0 | 8.6 | 8.2 | 8.1 | 7.7 | 7.4 | 7.1 |
HL Funds | 9.1 | 9.1 | 8.8 | 8.8 | 8.1 | 7.2 | 6.9 |
Double count1 | (9.0) | (9.0) | (8.7) | (8.7) | (8.0) | (7.2) | (6.8) |
Total | 86.2 | 84.8 | 81.5 | 79.6 | 74.2 | 68.6 | 66.5 |
AUA (£billion) | As at 30 April 2018 | As at 31 December 2017 | As at 30 September 2017 | As at 30 June 2017 | As at 30 April 2017 | As at 31 December 2016 | As at 31 September 2016 |
Funds | 49.6 | 48.9 | 46.6 | 45.6 | 44.1 | 39.9 | 38.3 |
Shares | 29.6 | 28.5 | 27.1 | 25.4 | 25.0 | 22.7 | 21.9 |
Cash | 9.5 | 8.6 | 8.3 | 8.1 | 7.8 | 7.4 | 7.3 |
HL Funds | 9.4 | 9.3 | 8.8 | 8.8 | 8.5 | 7.5 | 7.0 |
Double count1 | (9.3) | (9.2) | (8.8) | (8.7) | (8.4) | (7.5) | (6.9) |
Total | 88.8 | 86.1 | 82.0 | 79.2 | 77.0 | 70.0 | 67.6 |
Average AUA (£billion) | 10 months to 30 April 2018 | 10 months to 30 April 2017 |
Funds | 47.8 | 39.9 |
Shares | 27.8 | 22.8 |
Cash | 8.6 | 7.4 |
HL Funds | 9.1 | 7.5 |
Double count1 | (9.0) | (7.4) |
Total | 84.3 | 70.2 |
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 (£billion) | 4 months to 30 April 2018 | 3 months to 31 December 2017 | 3 months to 30 September 2017 | 2 months to 30 June 2017 | 4 months to 30 April 2017 | 3 months to 31 December 2016 | 3 months to 30 September 2016 |
Opening AUA | 86.1 | 82.0 | 79.2 | 77.0 | 70.0 | 67.6 | 61.7 |
Underlying net new business | 3.3 | 1.8 | 1.5 | 1.3 | 3.3 | 1.2 | 1.1 |
Market movements | (0.6) | 3.3 | 1.3 | 0.9 | 3.7 | 1.2 | 4.8 |
Founder transfer1 | - | (1.0) | - | - | - | - | - |
Closing AUA | 88.8 | 86.1 | 82.0 | 79.2 | 77.0 | 70.0 | 67.6 |
1 Underlying net new business excludes the transfer off the Vantage platform of £902 million of Hargreaves Lansdown plc shares and the withdrawal of £77 million of Hargreaves Lansdown plc placing proceeds during the period that were held by a founder.