Financial services firm Hargreaves Lansdown (HL) has seen revenue and profits rise despite a decline in new business and assets under management, amid turbulent market conditions.
The Bristol-based company reported revenue of £350m in the six months to the end of December 2022, up by a fifth on the first half of the previous financial year. Pre-tax profits rose by almost a third to £197.6m, with the FTSE 100 firm citing a return of higher net interest margins.
Chief executive Chris Hill said “challenging external conditions and low investor confidence” had impacted asset values and stockbroking volumes.
Net new business dropped by around 30% for a consecutive year to £1.6bn. The group’s total assets under administration also dropped back to £127.1bn from £141.2bn in 2021.
Mr Hill - who will retire after six years in the role to be replaced by Dan Olley later this year - said despite this HL had gained 31,000 new clients, taking the total to 1.77 million, with retention of existing clients growing to 92.4%.
He added that the firm had made progress on a five-year £175m growth strategy announced last year, which will include investment in new technology to help clients to manage and monitor investments and wealth.
Mr Hill said: “It is hard to think of any financial analyst, economic forecaster or policy expert who could have predicted the events of the past year. Over the last 12 months we have seen a ground war start in Europe, inflation reach 40-year highs and central banks drive significant interest rate rises.
“The combined effects of this challenging backdrop in 2022 have led to the lowest six-month period on record for consumer confidence, while investor confidence also hit its lowest level ever. Given this extended period of macroeconomic uncertainty, our focus - as always - is on supporting clients with their financial wellbeing and helping them to navigate this turbulence.”
The board declared an interim dividend of 12.7p per share - up 3.6% on the first half of the previous year.
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