Hargreaves Lansdown rallies as full-year revenues and AUA rise

Financial services company Hargreaves Lansdown PLC (LON: HL) have seen their share price rally after posting a set of largely impressive fundamentals for the full-year.

The Company published an 8% on-year rise in Assets Under Administration,, up to £99.3 billion. Similarly, revenues were up 7% to £480.5 million and profit before tax grew 5% to £305.8 million. However, Hargreaves Lansdown did note that new business inflows were down 4% on a year-on-year comparison, down to £7.3 billion.

Its shareholders enjoyed similar success; its diluted EPS grew 5% to 52.0p a share, and its ordinary dividend per share and total dividend per share both rose 5% to 33.70p and 42.0p respectively.

Hargreaves Lansdown comments

Chris Hill, Chief Executive Officer, stated,

“We are pleased with the underlying strength and resilience of our business and our increase in market share. We continue to focus on our clients’ evolving needs and where we see opportunities for growth. We now have a record 1,224,000 clients and Assets Under Administration (AUA) of £100 billion.”

“The second half of the financial year was particularly strong, supported by our best ever tax year end with clients continuing to use their ISA and SIPP allowances. Our Active Savings launched with a full tranche of term deposits and through considerable momentum, now has over £1bn AUA. Our HL Select Global Growth Shares fund now has over £350 million Assets Under Management and is our most successful Select fund launch to date.”

“I have apologised to all clients who have been impacted by the recent problems around the Woodford Equity Income Fund, because we all share their disappointment and frustration. In these difficult times we recognise the financial and personal impact the gating of the fund has had on them. Our priority is to support them, keep them informed and ensure that the fund reopens as soon as is practicable.”

“We recognise that there are industry headwinds, but we continue to execute our strategy and remain on track. We are confident that we are well placed to help our clients prosper, whilst continuing to deliver strong and sustainable returns for shareholders.”

Investor notes

Following the announcement, the Company’s shares rallied 9.05% or 165.93p to 1,998.93p per share 08/08/19 14:53 BST. Peel Hunt upgraded its rating from ‘Hold’ to ‘Add’, while Shore Capital analysts reiterated their ‘Hold’ stance on Hargreaves Lansdown stock. The Group’s p/e ratio stands at 36.88 and their dividend yield is 1.61%.

Elsewhere in large financial player and investment trust news, there have been updates from; London Stock Exchange Group (LON: LSE), RIT Capital Partners plc (LON: RCP), F&C Investment Trust PLC (LON: FCIT), River and Mercantile Group PLC (LON: RIV) and Hansard Global plc (LON: HSD).

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Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.