Hargreaves Lansdown Revenues Rise 20% Despite Net New Business Decline

UK-based financial brokerage Hargreaves Lansdown released its report for the six months ended December 31, 2022, on Wednesday, revealing a 20% rise in revenue compared to the same period last year.

The FTSE 100 firm reported revenue of £350 million, compared to £291.1 million in the prior year period, despite a 30% decline in net new business, which came in at £1.6 billion, compared to the previous £2.3 billion.

Total assets under administration also fell, coming in at £127.1 billion, 10% below last year’s £141.2 billion.

Despite the decline in some metrics, Hargreaves Lansdown’s pre-tax profit rose 31% to £197.6 million from £151.2 million, while underlying pre-tax profit, which excludes the strategic investment costs for the period, increased 30% to £211.9 million from £163.5 million. As a result, earnings per share were 33.1p, 29% above the previous year’s period of 25.7p.

Chris Hill, Chief Executive Officer, said:

Chris Hill

Chris Hill
Source: LinkedIn

I’m delighted that we have delivered a strong financial performance over the first half of the year, with year-on-year revenue growth of 20% and increasing both underlying and statutory profit by around 30%.

Whilst challenging external conditions and low investor confidence impacted asset values and stockbroking volumes in the period, clients have benefitted from our diversified platform and we have progressed across all the strategic priorities that we set out a year ago at our Capital Markets Day.”

Hargreaves Lansdown reported 1,77 million active clients during the six months, representing a 31,000 increase in the first half. In the company’s previous year period, H1 2022, active clients were 1.69 million, having increased by 48,000. In addition, its client retention rose during the period to 92.4%.

Read Also: