Hargreaves Lansdown issued a profit warning on Thursday, after a slowdown in new business growth.
According to figures, net new business intake in the September quarter stood at 1.1 billion, down 22 percent from the 1.4 billion recorded in the first quarter of the year. The total number of active client numbers increased by 20,000, down 17 percent from 24,000 in the first quarter of 2016.
However, assets under administration rose 9.5 percent from August to the end of September to a record £67.6 billion, stimulated by stock market rallies. The firm had also benefited from increased client trade demand following the June Brexit vote.
In a statement, the firm said:
“Despite the higher stock market levels, investor confidence has fallen and there remains much uncertainty about the future economic environment weighing on investors’ minds,” it said in a statement.
“Future stock market levels and investor confidence will have a significant part to play during the remainder of our financial year.”
Following the warning, Hargreaves Lansdown’s shares fell 2.8 percent. This marks a decrease of around 20 percent since the start of the year.
The FTSE All Share index was up 6.8 percent during September, according to figures by Reuters. This was attributed to boosts in profits for companies with overseas income, as a result of a the continued devaluation of sterling in the wake of the U.K’s decision to leave the European Union.