Hargreaves Lansdown, a British financial services company, published a trading update today for the four months ended on 30 April 2022. The revenue for the mentioned period dropped from £233.2 million to £196.5 million.
The company highlighted that the new net business during the mentioned period came in at £2.5 billion. The year-to-date client growth of 90,000 came in line with pre-covid levels. The client retention rate reached 92.4%.
"We are off to an encouraging start on the strategic initiatives we set out at our Capital Markets Day, which will build our capability to innovate and scale and enable us to take advantage of the growth in the wealth management sector. Our initial focus is on driving efficiency and costs savings in our operations whilst ensuring we maintain the market-leading service our clients expect from us particularly in these current uncertain times,” Chris Hill, the Chief Executive Officer at Hargreaves Lansdown, said.
Regarding the outlook for the coming year, Hargreaves Lansdown is planning to focus on cost control and investment discipline. The financial services provider will further provide details about the progress of its strategic initiatives on 5 August 2022.
Challenges
According to Hill, the global macroeconomic and geopolitical environment has impacted the financial sector significantly this year.
“The challenging backdrop driven by unprecedented macro-economic and geo-political events has impacted markets and investor confidence, in turn leading to moderated flows and asset levels with the net new business of £2.5 billion in this period. We saw a significant step up in flows in March and April from our tax year-end campaign which focused on the benefits of long-term saving and investing, with £1.8 billion of tax wrapped inflows leading to a record 747,000 clients contributing to their ISAs and pensions this tax year,” Hill added.
