Despite a
challenging economic landscape, Hargreaves Lansdown (LSE: HL), a popular
financial services company in the UK, has reported significant gains across key
metrics for the fiscal year ending 30 June 2023. The report published today
(Tuesday) highlighted a 50% increase in pre-tax profits and an 8% rise in
assets under administration. The company also welcomed 67,000 new active
clients, bringing its total to over 1.8 million.
Several key
achievements marked the company’s financial performance for the year. Revenue
surged by 26% to £735.1 million, and pre-tax profits soared by 50% to £402.7
million. Assets under administration (AuA) rose by 8% to £134 billion, driven by new
business and positive market trends. The numbers confirmed strong interim
results for the first six months of FY23, which showed a 20% revenue increase
to £350 million.
Profit
after tax reached £323.7 billion, increasing significantly from £215.8 billion
reported in the same period a year earlier. In addition, diluted earnings per
share rose by 49% to 68.2 pence and the ordinary dividend per share was up by
4.5% at 41.5 pence.
Source: Hargreaves Lansdown
Net new
business inflows stood at £4.8 billion, although this was a 13% decrease
compared to the previous year.
“We
have delivered a robust financial performance for our full year in what
continues to be a challenging broader economic environment,” Dan Olley,
the newly appointed Chief Executive Officer who replaced Chris Hill, expressed
optimism about the company’s future.
Olley also
mentioned that the company, which sells shares and funds to retail investors in
the UK, now supports over 1.8 million clients with their savings and investment
needs, maintaining a stable client retention rate of over 92%. He highlighted
that the revenue growth of 26% year-on-year was achieved while keeping cost
growth within the guided range.
In response to the better-than-expected report, HL shares rose 7% upon the opening of the London Stock Exchange, testing the 819 pence level. This is the highest value for the company since the beginning of August.
Outlook and Future Steps
for Hargreaves Lansdown
Hargreaves
Lansdown is bracing itself for a relatively stable economic environment in the
upcoming financial year. Despite the predictable climate potentially hampering
new investments and trading volumes, the firm is committed to guiding its
clients toward profitable opportunities, as it has done previously with
government bonds.
To this
end, Hargreaves Lansdown plans to offer a range of digital tools aimed at
helping clients manage their portfolios more efficiently, thereby allowing for
more personalized services.
The firm is
already executing preliminary cost-control measures focusing on operating costs
and efficiency. However, maintaining a high quality of service remains a
priority, given the company’s growing clientele.
Olley has
emphasized that his immediate priorities include fostering growth, accelerating
the company’s pace, identifying new areas for investment, and positioning the
right people in the right roles.
He believes
these strategies will make Hargreaves Lansdown “truly future fit to
deliver for our clients and, in turn, for our shareholders.”
Despite a
challenging economic landscape, Hargreaves Lansdown (LSE: HL), a popular
financial services company in the UK, has reported significant gains across key
metrics for the fiscal year ending 30 June 2023. The report published today
(Tuesday) highlighted a 50% increase in pre-tax profits and an 8% rise in
assets under administration. The company also welcomed 67,000 new active
clients, bringing its total to over 1.8 million.
Several key
achievements marked the company’s financial performance for the year. Revenue
surged by 26% to £735.1 million, and pre-tax profits soared by 50% to £402.7
million. Assets under administration (AuA) rose by 8% to £134 billion, driven by new
business and positive market trends. The numbers confirmed strong interim
results for the first six months of FY23, which showed a 20% revenue increase
to £350 million.
Profit
after tax reached £323.7 billion, increasing significantly from £215.8 billion
reported in the same period a year earlier. In addition, diluted earnings per
share rose by 49% to 68.2 pence and the ordinary dividend per share was up by
4.5% at 41.5 pence.
Source: Hargreaves Lansdown
Net new
business inflows stood at £4.8 billion, although this was a 13% decrease
compared to the previous year.
“We
have delivered a robust financial performance for our full year in what
continues to be a challenging broader economic environment,” Dan Olley,
the newly appointed Chief Executive Officer who replaced Chris Hill, expressed
optimism about the company’s future.
Olley also
mentioned that the company, which sells shares and funds to retail investors in
the UK, now supports over 1.8 million clients with their savings and investment
needs, maintaining a stable client retention rate of over 92%. He highlighted
that the revenue growth of 26% year-on-year was achieved while keeping cost
growth within the guided range.
In response to the better-than-expected report, HL shares rose 7% upon the opening of the London Stock Exchange, testing the 819 pence level. This is the highest value for the company since the beginning of August.
Outlook and Future Steps
for Hargreaves Lansdown
Hargreaves
Lansdown is bracing itself for a relatively stable economic environment in the
upcoming financial year. Despite the predictable climate potentially hampering
new investments and trading volumes, the firm is committed to guiding its
clients toward profitable opportunities, as it has done previously with
government bonds.
To this
end, Hargreaves Lansdown plans to offer a range of digital tools aimed at
helping clients manage their portfolios more efficiently, thereby allowing for
more personalized services.
The firm is
already executing preliminary cost-control measures focusing on operating costs
and efficiency. However, maintaining a high quality of service remains a
priority, given the company’s growing clientele.
Olley has
emphasized that his immediate priorities include fostering growth, accelerating
the company’s pace, identifying new areas for investment, and positioning the
right people in the right roles.
He believes
these strategies will make Hargreaves Lansdown “truly future fit to
deliver for our clients and, in turn, for our shareholders.”
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- Source: https://www.financemagnates.com//forex/hargreaves-lansdown-defies-economic-headwinds-with-50-surge-in-profits/
