Net new business inflows at Bristol-based intermediary and discount broker Hargreaves Lansdown hit £970m from 1 July 2014 to 13 October 2014, down from £1.26bn for the previous quarter.
In an interim management statement published today (14 October), Hargreaves Lansdown bosses reported a “record level” of assets under administration, increasing by £100m in the three months to 30 September 2014, to £47bn.
Net revenue for the business hit £70.8m compared with £70.1m at the end of March, with bosses stating the results were “good in challenging investment conditions”.
The results also revealed total active client numbers rose by 10,000 from 1 July 2014 to 13 October 2014, compared with a rise of 20,000 in the first three months of this year, to 662,000.
Ian Gorham, chief executive of Hargreaves Lansdown, said the group’s results for the first quarter of the year must be considered in light of the prevailing conditions for investment.
He said the FTSE All Share index fell by almost 2 per cent to 3533.93, in comparison to gains in the same period last year of almost 5 per cent and the previous year almost 4 per cent.
Mr Gorham said: “IMA Total UK net retail fund sales were on average 39 per cent lower and UK retail stockbroking trades 13 per cent lower in July and August 2014 compared to the same months in 2013, as investors stayed on the sidelines.
“Despite these factors, organic growth in Hargreaves Lansdown’s AUA and client numbers has continued. Management consider the results commensurately healthy for a period of weaker stock markets.”
The results also revealed Hargreaves Lansdown is planning a suite of new cash-related services for clients, which can be developed without any current need for a banking licence. Mr Gorham said work is now “in train” to develop these services.
The company also reported “good progress” on previously announced plans to launch three additional multi-manager funds, with launch subject to regulatory approval expected in the new year.
Mr Gorham said: “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 of growing the business further to the benefit of our clients and shareholders.”
