Hargreaves Lansdown PLC Trading Statement (3989M)
13 October 2016 - 5:00PM
UK Regulatory
TIDMHL.
RNS Number : 3989M
Hargreaves Lansdown PLC
13 October 2016
Trading Update
Hargreaves Lansdown Plc
Hargreaves Lansdown Plc ('the Group') today publishes a trading
update covering the period from 1 July 2016 to 12 October 2016,
including trading data for the three months ended 30 September 2016
("Q1 2017"). The comparatives are for 1 July 2015 to 30 September
2015 ("Q1 2016").
Summary
-- Assets Under Administration ("AUA"), increased by GBP5.9
billion to a record GBP67.6 billion (June 2016: GBP61.7bn).
-- Record net quarterly revenue of GBP90.6m, (Q1 2016: GBP78.5m) up 15%.
-- Net new business inflows of GBP1.11bn (Q1 2016: GBP1.43bn), down 22% on Q1 2016.
-- Total active client numbers rose by 20,000 (Q1 2016: 24,000), down 17% on Q1 2016.
-- Total client numbers now 856,000 (30 June 2016: 836,000).
-- Client initiated share deals of 1,031,000 in the quarter (Q1 2016: 691,000) up 49%.
Higher asset values, along with very strong share dealing
volumes following on from the EU Referendum has driven net revenue
to a record GBP90.6m, 15% higher than last year.
Despite the higher stock market levels, investor confidence has
fallen and there remains much uncertainty about the future economic
environment weighing on investors' minds. Such concerns have
impacted net new business flows which were down 22%, albeit against
a record first quarter performance last year, which was boosted by
the new pension freedoms and transfers of Child Trust Funds into
Junior ISAs ("JISA"). New money and transfers in have been
comparable to last year but we experienced higher levels of cash
withdrawals in the early part of the quarter following the EU
referendum, particularly from the Fund and Share account where
investments tend to be less sticky and trading profits can be more
easily withdrawn.
New active clients totalled 20,000, down 17% on last year. Last
year was boosted by c7,000 new JISA clients following the
introduction of the ability to transfer a Child Trust Fund to a
JISA as from 6 April 2015. This year has seen c3,000 new JISA
clients.
Client and asset retention rates continue to be strong at 94.6%
and 93.4% for the quarter, versus 94.0% and 93.7% respectively seen
in the last financial year.
As ever, future stock market levels and investor confidence will
have a significant part to play during the remainder of our
financial year. However, we remain confident in the execution of
our strategy to take advantage of the structural growth opportunity
in the UK savings and investments market to the benefit of our
clients and shareholders.
Contacts:
Hargreaves Lansdown
For media enquiries: For analyst enquiries:
Danny Cox, Head of Communications James Found, Head of Investor
Relations
+44(0)117 317 1638 +44(0)117 988 9898
Ian Gorham, Chief Executive Officer Christopher Hill, Chief
Financial Officer
13 October 2016
Forward looking statements
This announcement contains forward-looking statements with
respect to the financial condition, results and business of the
Group. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events, and depend on
circumstances, that will occur in the future. The Group's actual
results may differ materially from the results expressed or implied
in these forward-looking statements. Nothing in this announcement
should be construed as a profit forecast. This announcement is
unaudited. This statement should not be seen as a promotion or
solicitation to buy Hargreaves Lansdown Plc shares. It should be
remembered that the value of shares can fall as well as rise and
therefore you could get back less than you invested.
Assets Under Administration
Total assets under administration at 30 September 2016 can be
analysed as follows:
30 30 June 30 Sept
Sept 2016 2015
2016 GBP'billion GBP'billion
GBP'billion
Vantage Assets Under Administration
(AUA)* 64.4 58.7 51.9
Assets Under Management (AUM)
Portfolio Management Service
(PMS) 3.1 2.9 2.8
Multi-Manager Funds held outside
of PMS 4.0 3.6 3.0
AUM Total 7.1 6.5 5.8
Less: Multi-Manager funds
(AUM) included in Vantage
AUA (3.9) (3.5) (3.0)
Total Assets Under Administration
and Management 67.6 61.7 54.7
* Figures are subject to rounding
Vantage Discretionary
AUA AUM
AUA/AUM* GBP'billion GBP'billion
As at 30 June 2016 58.7 6.5
Net new business 1.1 0.1
Market growth and other
growth factors 4.6 0.5
As at 30 September 2016 64.4 7.1
* Figures are subject to rounding
30 September 30 June
2016 2016
Vantage AUA split by*: GBP'billion GBP'billion
ISA 25.2 23.0
SIPP 21.2 19.3
Fund & Share 18.0 16.5
Total 64.4 58.7
* Figures are subject to rounding
Net operating revenue*
Q1 Q1 %
2017 2016 Increase
Net operating revenue by division: GBP'million GBP'million
Vantage 68.6 58.6 17%
Discretionary 16.2 14.6 11%
Third Party & Other 5.8 5.3 9%
Total 90.6 78.5 15%
* Figures are subject to rounding
This information is provided by RNS
The company news service from the London Stock Exchange
END
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