Hargreaves Lansdown posts rise in revenue despite drop in clients 

In a trading update yesterday (October 17), the DIY platform said it saw revenues rise to £162.9mn, from £142.2mn in the same period a year before.

FTAdviser understands the revenues are due to a rise in cash margins prompted by the increased interest rates in the UK.

However, new clients joining the platform dropped from 23,000 to 17,000 on a net basis compared to the same period last year, and the volume of share dealing per month dropped to 700,000 from 861,000.

Assets under administration dropped from £138bn at the end of September last year to £122.7bn at the same point this year, despite £700mn in total net new business, due to “adverse market movement” in the period, pushing AUM down by £1.8bn.

Flows into risk based investments remain subduedChris Hill, HL

Looking ahead, the company has raised its overall revenue margin guidance to 49 to 52 basis points, driven by a rise in cash margins to 130 to 150 basis points. 

Shares margin guidance dropped to 30 to 35 basis points.

The group is due to launch a new US fund on November 1, and its “augmented advice” proposition will see a pilot launch before the end of the year,

Chief executive officer of Hargreaves Lansdown, Chris Hill, who announced his departure this morning, said cash savings have been high on clients’ agendas in recent months.

“Although flows into risk based investments remain subdued, both client and asset retention rates remain strong and in line with last year.”

Hill will remain in the role until November 2023 at the latest, allowing for a successor to be found and to join the company.

Chair at Hargreaves Lansdown, Deanna Oppenheimer, said Hill has "successfully led the company through a period of significant change...he is leaving HL as a stronger company, with a clearly defined strategy."

Hill added: "I set in train a comprehensive strategy to ensure the company remains at the forefront of wealth management, including providing clients with the best digital tools.

"Having put in place strong foundations that are already delivering results, including an exceptional leadership team, it will be time after a thoughtful transition to hand over to my successor to take the company through the next phase of embedding this strategy."

The group has recently been hit with a lawsuit over allegations it recommended the Woodford Equity Income Fund to investors, despite knowing about the liquidity issues facing the vehicle.

sally.hickey@ft.com