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Hargreaves Lansdown PLC on Friday reported a fall in managed assets over the course financial 2022, with market volatility denting investor sentiment, but was pleased with its ability to add 92,000 new clients.
The fund supermarket also promised to grow its ordinary dividend.
In the year that ended June 30, pretax profit slumped 26% to £269.2 million from £366.0 million. Revenue declined 7.6% to £583.0 million from £631.0 million.
‘Against a macroeconomic and geopolitical climate not seen in a generation with subdued flows and lower activity across wealth management, we have delivered £5.5 billion of net new business through the year and the quality of our service attracted a further 92,000 net new clients,’ Chief Executive Chris Hill said.
The retail investment platform ended June 30 with 1.74 million clients.
Hargreaves ended the financial year with £123.8 billion in total assets under administration, sliding 8.6% from £135.5 billion at the same point the year prior.
The firm reported £5.5 billion in net new business inflows in the period, 37% behind the £8.7 billion recorded the year before.
CEO Hill added: ‘Our focus is firmly on servicing our clients, disciplined cost management and delivering our strategy because we remain confident that it will deliver outstanding client service, strong shareholder returns and market leadership for HL.’
Accounting for the falling inflows and revenue, HL said a ‘combination of macroeconomic and geopolitical events has hit markets and dented investor confidence throughout the year.’
It added: ‘As we have seen across the industry, this has led not only to reduced asset values, but also to subdued flows for many direct-to-consumer services and lower activity across wealth management as a whole.’
Looking ahead, HL said it sees ‘continued, economic and geopolitical turbulence’ ahead.
‘This will continue to impact key drivers of our business including asset levels and investor confidence. We have supported clients through such events and period for many years, and each time we have come through stronger. This time will be no different,’ it added.
Shares in Hargreaves Lansdown were 3.3% higher in London on Friday morning at 871.60 pence each.
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