Trading update
30 April 2024
Hargreaves Lansdown plc today issues
a trading update in respect of the three months ended 31 March
2024.
Highlights
· Good momentum into tax year end with increased gross inflows,
net new clients and share dealing volumes.
· Net new business of £1.6 billion in the period and closing
Assets under Administration ("AUA") a record £149.7
billion.
· Net new clients of 34,000 in the period, up 48% year on year,
taking us to 1,858,000 active clients.
· Revenue for the period of £199.7 million, up 6%
(Q3 2023: £188.1m).
Dan
Olley, Chief Executive Officer, commented:
"On joining the business, one of the
highest priorities I set was to recapture our service excellence,
so I am delighted that we delivered a great service experience for
our clients over tax year end despite receiving record volumes in
calls and emails. We saw a significant rise in the service Net
Promoter Score, up to +48 from +33.
"Our relentless focus on client
service, making it easy to save and invest to ensure that we meet
our clients' needs has delivered clear results this quarter. We
built good momentum into tax year end, and as a result have seen
year-on-year increases of gross inflows and share dealing volumes
in the quarter and net new business on a par with last
year.
"We welcomed 34,000 net new clients
in the quarter, reflecting the increasing popularity of our newer
products such as ready-made pensions, our cash ISA offerings and
Active Savings. A record number of clients contributed to their
pensions in the tax year, with the average amount subscribed up by
c22% and 270,000 of our clients now have an Active Savings account,
resulting in Active Savings reaching the significant milestone of
£10 billion in AUA since the end of the quarter."
Trading performance
· Net
new business of £1.6 billion in the quarter (Q3 2023: £1.6bn),
reflects a significant step up versus the first half of the year
driven by net flows on to the Platform as clients focused more on
utilising their ISA and SIPP allowances. Active Savings continues
to perform well and benefited from the launch of the first of its
kind multi-bank cash ISA which provides clients with the full suite
of Cash ISA products (fixed-term, easy access and limited access)
from multiple banks.
· Net
client growth of 34,000 in the quarter (Q3
2023: 23,000) driven by net new clients in the SIPP, ISA and Active
Savings accounts. Client retention at 91.4%
(Q3 2023: 92.0%) and asset retention at 88.0% (Q3 2023: 89.1%)
continues to reflect the macroeconomic backdrop for those of our
clients who need to make cash withdrawals.
· Share
dealing volumes averaged 794,000 per month in the quarter (Q3 2023:
770,000) and an increase in volumes seen since the first half of
the year, with overseas deal volumes representing 23.6% of total
deals in the quarter (Q3 2023: 16.8%).
· As
expected, client cash balances increased during the quarter as
clients contributed to their tax wrapped accounts ahead of the tax
year-end deadline to £12.4 billion (Q3 2023: £13.5bn)
· Total
revenue in the quarter of £199.7 million (Q3 2023: £188.1m)
benefits from increased dealing volumes and higher platform revenue
from higher AUA levels, more than offsetting the year on year
reduction in revenue on cash from lower NIM and cash
balances.
Looking ahead to the remainder of
the financial year, we are pleased to see momentum continue into
April as clients take advantage of the benefits of investing at the
start of the tax year.
We continue to make good progress
against our priorities for the year - improving our client
proposition, controlling our costs and increasing our execution
pace so that we can capitalise on the significant growth
opportunities that lie ahead and create value for all our
stakeholders.
Financial calendar
A fourth quarter trading update will
be issued on 19th July 2024 and then the full year
results will be issued on 9th August 2024. Our Annual
General Meeting is set for 22nd October 2024.
Contacts:
|
Investors
|
Media
|
|
James Found, Head of Investor
Relations
+44(0)7970 066634
|
Danny Cox, Head of
Communications
+44(0)7989 672071
Lucy Thomas, Corporate Affairs
Director
+44 (0)777 9639460
|
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
Revenue, clients and share dealing volumes
|
Key
metrics
|
3 months to 31 March
2024
|
3 months to 31 December
2023
|
3 months to 30 September
2023
|
3 months to 30 June
2023
|
3 months to 31 March
2023
|
|
Revenue (£m)
|
199.7
|
184.4
|
183.8
|
197.0
|
188.1
|
|
Net new clients
|
34,000
|
12,000
|
8,000
|
13,000
|
23,000
|
|
Total
active clients
|
1,858,000
|
1,824,000
|
1,812,000
|
1,804,000
|
1,791,000
|
|
Client Retention Rate (%)
|
91.4
|
91.6
|
91.7
|
92.0
|
92.0
|
|
Asset Retention Rate (%)
|
88.0
|
89.3
|
89.0
|
89.7
|
89.1
|
|
Share dealing volumes per
month
|
794,000
|
672,000
|
634,000
|
685,000
|
770,000
|
Assets under administration
|
AUA
(£billion)
|
3 months to 31 March
2024
|
3 months to 31 December
2023
|
3 months to 30 September
2023
|
3 months to 30 June
2023
|
3 months to 31 March
2023
|
|
Opening AUA
|
142.2
|
134.8
|
134.0
|
132.0
|
127.1
|
|
Net new business -
platform
|
0.9
|
(0.2)
|
(0.1)
|
0.9
|
0.9
|
|
Net new business - Active
Savings
|
0.7
|
0.6
|
0.7
|
0.8
|
0.7
|
|
Total net new business
|
1.6
|
0.4
|
0.6
|
1.7
|
1.6
|
|
Market movements and
other
|
5.9
|
7.0
|
0.2
|
0.3
|
3.3
|
|
Closing AUA
|
149.7
|
142.2
|
134.8
|
134.0
|
132.0
|
|
Closing AUA (£billion)
|
As at
31 March 2024
|
As at
31 December
2023
|
As at
30
September
2023
|
As at
30 June
2023
|
As at
31 March
2023
|
|
Funds
|
68.8
|
65.1
|
61.9
|
62.2
|
61.6
|
|
Shares
|
58.5
|
55.8
|
51.9
|
50.8
|
49.8
|
|
Cash
|
12.4
|
12.1
|
12.4
|
13.1
|
13.5
|
|
HL Funds
|
9.8
|
9.2
|
8.7
|
8.7
|
8.6
|
|
Active Savings
|
9.9
|
9.1
|
8.5
|
7.8
|
7.0
|
|
Double count1
|
(9.7)
|
(9.1)
|
(8.6)
|
(8.6)
|
(8.5)
|
|
Total
|
149.7
|
142.2
|
134.8
|
134.0
|
132.0
|
|
Average AUA (£billion)
|
3 months to 31 March
2024
|
3 months to 31 December
2023
|
3 months to 30 September
2023
|
3 months to 30 June
2023
|
3 months to 31 March
2023
|
|
Funds
|
66.9
|
62.3
|
62.6
|
62.1
|
61.8
|
|
Shares
|
56.4
|
52.9
|
52.2
|
50.4
|
50.1
|
|
Cash
|
12.2
|
12.1
|
12.5
|
13.4
|
13.6
|
|
HL Funds
|
9.5
|
8.8
|
8.8
|
8.7
|
8.6
|
|
Active Savings
|
9.6
|
8.9
|
8.3
|
7.5
|
6.8
|
|
Double count1
|
(9.4)
|
(8.7)
|
(8.7)
|
(8.6)
|
(8.5)
|
|
Total
|
145.2
|
136.3
|
135.7
|
133.5
|
132.4
|
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.