TIDMHL.
RNS Number : 3345Y
Hargreaves Lansdown PLC
04 May 2023
Trading update
4 May 2023
Hargreaves Lansdown plc today issues a trading update in respect
of the three months ended 31 March 2023 ("Q3").
Highlights
-- Net new business of GBP1.6 billion in the period, up 14% on Q3 FY22.
-- Closing Assets under Administration ("AUA") of GBP132.0 billion, up 4% in the quarter.
-- Revenue for the period of GBP188.1 million, up 28% on Q3 FY22.
-- Net client growth of 23,000 in the period, taking us to 1.8 million clients.
Chris Hill, Chief Executive Officer, commented:
"We delivered net new business of GBP1.6 billion in the period,
up 14% on last year as the combination of changes to the tax
landscape, our marketing activity, and ongoing developments in our
core propositions generated a call to action for clients in the run
up to tax year end. 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.
During the quarter, we launched a new cash ISA, three new
Portfolio Funds and our enhanced Share Exchange service helping
clients enable efficient use of their tax allowances. The targeted
price reduction we have made to our LISA product and making our
Junior ISA fee free demonstrates how we are thinking about specific
improvements to help families manage wealth and to help those
starting out on their investing journeys."
Trading performance
-- Net new business of GBP1.6 billion in Q3 (Q3 FY22: GBP1.4bn),
despite moderated flows being seen across the market. This was 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 tax allowances.
-- Active Savings saw net inflows of GBP0.7 billion in the
quarter (Q3 FY22: GBP0.1 billion) with lower flows than the
previous quarter as clients favoured tax wrapped investments ahead
of the tax year-end.
-- Active client growth of 23,000 in the quarter (Q3 FY22:
31,000) with c lient retention at 92.0% broadly in line with last
year (Q3 FY22: 91.7%); asset retention of 89.1%, lower than prior
year (Q3 FY22: 91.5%) reflecting the continued need of certain
clients for cash withdrawals.
-- Closing AUA of GBP132.0 billion reflects GBP3.3 billion
positive market movement, combined with GBP1.6 billion of net new
business.
-- Total revenue in the quarter of GBP188.1 million (Q3 FY22:
GBP146.9m) up 28%; year-to date revenue of GBP538.1 million (FY22:
GBP438.0m) up 23% reflecting a continuation of the increase in net
interest margin, which more than offset the impact from the
reduction in share dealing volumes and lower average asset values
during the period.
-- Share dealing volumes have averaged 770,000 per month in the
quarter, up 23% versus the previous quarter but 20% lower than
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.
Financial calendar
A fourth quarter trading update will be issued on 19(th) July
2023 and then the full year results, including progress on our
strategic initiatives will be issued on 19(th) September 2023. Our
Annual General Meeting is set for 8(th) December 2023.
Contacts:
Investors Media
James Found, Head of Investor Danny Cox, Head of Communications
Relations +44(0)7989 672071
+44(0)7970 066634 Nick Cosgrove, Brunswick
0207 404 5959
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, retention rates and share dealing volumes
Key metrics 3 months 3 months 3 months 3 months 3 months
to 31 March to 31 December to 30 September to 30 June to 31 March
2023 2022 2022 2022 2022
Revenue (GBPm) 188.1 187.1 162.9 145.0 146.9
------------- ---------------- ----------------- ------------ -------------
Net new clients 23,000 14,000 17,000 13,000 31,000
------------- ---------------- ----------------- ------------ -------------
Total active
clients 1,791,000 1,768,000 1,754,000 1,737,000 1,724,000
------------- ---------------- ----------------- ------------ -------------
Client Retention
Rate (%) 92.0 92.6 92.2 91.3 91.7
------------- ---------------- ----------------- ------------ -------------
Asset Retention
Rate (%) 89.1 91.1 91.7 91.5 91.5
------------- ---------------- ----------------- ------------ -------------
Share dealing
volumes per
month 770,000 627,000 700,000 779,000 960,000
------------- ---------------- ----------------- ------------ -------------
Assets under administration
AUA (GBPbillion) 3 months 3 months 3 months 3 months 3 months
to 31 March to 31 December to 30 September to 30 June to 31 March
2023 2022 2022 2022 2022
Opening AUA 127.1 122.7 123.8 134.7 141.2
------------- ---------------- ----------------- ------------ -------------
Net new business
- platform 0.9 (0.1) - 1.1 1.3
------------- ---------------- ----------------- ------------ -------------
Net new business
- Active
Savings 0.7 1.0 0.7 0.7 0.1
------------- ---------------- ----------------- ------------ -------------
Total net
new business 1.6 0.9 0.7 1.8 1.4
------------- ---------------- ----------------- ------------ -------------
Market movements
and other 3.3 3.5 (1.8) (12.7) (7.9)
------------- ---------------- ----------------- ------------ -------------
Closing AUA 132.0 127.1 122.7 123.8 134.7
------------- ---------------- ----------------- ------------ -------------
Closing As at 31 As at 31 As at 30 As at 30 As at 31
AUA (GBPbillion) March 2023 December September June 2022 March 2022
2022 2022
Funds 61.6 59.6 57.4 58.2 64.4
------------ ---------- ----------- ----------- ------------
Shares 49.8 47.1 45.2 45.9 52.1
------------ ---------- ----------- ----------- ------------
Cash 13.5 14.1 14.8 15.0 14.3
------------ ---------- ----------- ----------- ------------
HL Funds 8.6 8.3 7.8 8.0 8.6
------------ ---------- ----------- ----------- ------------
Active Savings 7.0 6.3 5.3 4.6 3.9
------------ ---------- ----------- ----------- ------------
Double count(1) (8.5) (8.3) (7.8) (7.9) (8.6)
------------ ---------- ----------- ----------- ------------
Total 132.0 127.1 122.7 123.8 134.7
------------ ---------- ----------- ----------- ------------
Average 3 months 3 months 3 months 3 months 3 months
AUA (GBPbillion) to 31 March to 31 December to 30 September to 30 June to 31 March
2023 2022 2022 2022 2022
Funds 61.8 59.2 59.8 61.0 63.7
------------- ---------------- ----------------- ------------ -------------
Shares 50.1 47.3 47.5 48.7 51.7
------------- ---------------- ----------------- ------------ -------------
Cash 13.6 14.3 14.8 14.8 14.0
------------- ---------------- ----------------- ------------ -------------
HL Funds 8.6 8.2 8.1 8.3 8.6
------------- ---------------- ----------------- ------------ -------------
Active Savings 6.8 6.0 5.1 4.3 3.9
------------- ---------------- ----------------- ------------ -------------
Double count(1) (8.5) (8.1) (8.1) (8.3) (8.5)
------------- ---------------- ----------------- ------------ -------------
Total 132.4 126.9 127.2 128.8 133.4
------------- ---------------- ----------------- ------------ -------------
(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.
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