Hargreaves
Lansdown (LSE: HRL), a publicly-listed financial services company, has
announced strong results for the quarter ended 31 March 2024. The firm saw a
surge in gross inflows, net new clients, and share dealing volumes, indicating
positive momentum leading up to the tax year end.
“We built
good momentum into tax year-end and, as a result, have seen year-on-year increases,” commented Dan Olley, the Chief Executive Officer at Hargreaves Lansdown.
Hargreaves Lansdown
Reports Strong Performance in Q1 2024
Analyzing
the financial data, we see that Hargreaves Lansdown achieved revenue of £199.7
million, the highest over the past year, surpassing results from Q4 2023 at
£184.4 million and from Q1 2023 at £188.1 million.
Monthly
share dealing volumes also increased, reaching 794,000 compared to 672,000 in
the previous quarter and 770,000 reported in the same period the previous year.
The company
reported a new net business of £1.6 billion for the quarter, bringing the total Assets under Administration (AuA) to an all-time high of £149.7 billion. This
growth was driven by increased net flows to the Hargreaves Lansdown’s platform as
clients focused on maximizing their ISA and SIPP allowances.
Hargreaves Lansdown (#HL.) has published their Q1 trading update indicating:✅️ Net new business of £1.6bn✅️ Assets under administration of £149.7bn✅️ 34k net new clients✅️ Client base +48% year on year✅️ Revenue +6% to £199.7mI continue to hold.
— Henry Viola-Heir (@HTVIOLA) April 30, 2024
This
confirmed the company’s results for the fiscal year 2023, during which profits amounted to £402.7 million,
increasing 50%. At the same time, the customer base grew 67,000, and
AuA increased 8% to £134 billion.
Record Number of Active
Clients
Hargreaves
Lansdown additionally welcomed 34,000 net new clients during the quarter, a visible increase of 48% compared to the same period last year. This
brings the total number of active clients to 1,858,000. The popularity of
newer products such as ready-made pensions, cash ISA offerings, and Active
Savings contributed significantly to this client growth.
“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,” added Olley, who replaced Chris
Hill in 2023.
Looking
ahead, Hargreaves Lansdown is optimistic about the remainder of the financial
year, with momentum continuing into April as clients seize the advantages of
investing early in the tax year.
This article was written by Damian Chmiel at www.financemagnates.com.
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