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Hargreaves Lansdown plc past quarter has seen an uncertain market environment

Hargreaves Lansdown plc (LON:HL.) today published a trading update in respect of the three month period to 30 September 2018.

Highlights

· Net new business of £1.3 billion in the period

· Net new clients of 29,000

· Assets under administration (“AUA”) of £94.1 billion as at 30 September 2018, up 3% since 30 June 2018

· Net revenue for the period of £120.8 million (2017: £104.1 million), up 16%

Chris Hill, Chief Executive Officer of Hargreaves Lansdown, commented:

“I’m pleased to report a solid start to our financial year for growth in clients, net new business and revenue. The past quarter has seen an uncertain market environment and weak investor sentiment resulting in an industry-wide slowdown in net retail flows. Despite this backdrop, we believe the strength of our business model positions us well for when sentiment improves.”

 

Assets under administration and net new business

 

£ billion

Three months to 30 September 2018

Opening AUA

91.6

Net new business

1.3

Market movements

1.2

Closing AUA

94.1

 

Net new business of £1.3 billion for the period was driven by continued investment in our digital marketing presence, higher client numbers and ongoing wealth consolidation onto our platform. During the period, we also added three further banks to our cash marketplace service, Active Savings, enabling clients to manage their cash more easily at attractive rates of interest. As a result, we increased the level of marketing and promotional activity in early September and now have over £100 million managed by clients in this service. AUA rose to £94.1 billion as at 30 September 2018 due to net new business and positive market movements.

We welcomed 29,000 new clients in the period (Q1 18: 30,000), taking active client numbers to 1,120,000.

Net revenue

Net revenue for the period was £120.8 million, up 16% on last year, benefiting from higher AUA levels due to net new business and market growth.