Hargreaves Lansdown posts positive quarter ahead of its acquisition

Hargreaves Lansdown reported a positive quarter for the three months ended 30 September on Tuesday, with assets under administration (AuA) reaching £157.3bn.

The FTSE 100 company , which agreed in August to be acquired by a private equity consortium for £5.4bn, said that represented an increase driven by £1.5bn in market growth and net new business inflows of £0.5bn, though slightly lower than the £0.6bn reported in the prior quarter.

It recorded a net addition of 18,000 new clients, a notable improvement from the 8,000 added in the first quarter of the 2024 financial year.

Most of the new clients joined through SIPP, ISA, and Active Savings accounts.

Client retention remained steady at 92.0%, while asset retention came in at 88.6%, both metrics slightly below Hargreaves Lansdown's longer-term targets.

Trading activity rose, with average monthly share dealing volumes hitting 738,000, up from 634,000 in the prior quarter.

Overseas transactions accounted for 20.2% of total trading - an increase from 18.3% in the first quarter.

Client cash balances also rose, ending the quarter at £12.7bn, primarily due to net selling activity by clients in September.

Quarterly revenue totaled £196.5m, up from £183.8m in the first quarter.

That growth was supported by higher platform revenue linked to the increase in AuA, alongside higher dealing volumes.

However, that was partially offset by reduced revenue from cash, as a result of a lower net interest margin.

“The proposed acquisition of Hargreaves Lansdown has been approved by shareholders and is now subject to certain outstanding regulatory approvals, with completion expected in the first quarter of 2025,” said chief executive officer Dan Olley.

“In the meantime, we remain as committed as ever to supporting our clients with the very best service, experience and value, and on executing our strategy.

“We are particularly mindful of tomorrow's Budget, and will be on hand to support and guide our clients following any potential changes that are made.”

At 0818 GMT, shares in Hargreaves Lansdown were up 0.18% at 1,089p.

Reporting by Josh White for Sharecast.com.