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Hargreaves Lansdown PLC on Thursday reported net client growth decelerated in its first-quarter, amid ongoing macroeconomic challenges.
The Bristol-based digital wealth management service said it saw net new business of £600 million in its first quarter ended September 30, slowing annually from £700 million, reflecting ‘moderated flows’ seen across the market.
Net new clients grew by 8,000 over the quarter, easing from growth of 17,000 a year prior, bringing its total to 1.8 million active clients, at a 91.7% retention rate, down from 92.2% a year ago. Revenue grew 13% year-on-year to £183.8 million from £162.9 million, as growth in net interest margin offset the revenue impact of lower share dealing volumes. A year prior, revenue had grown 15%.
Chief Executive Officer Dan Olley said: ‘Clients are looking to invest more in cash than risk-based investments, from our active savings offer, giving easy access to a range of banking partners, to money market funds and short-dated bonds. Combining this with informative and relevant content provides our clients with a wide range of solutions to meet their saving and investment needs.’
Assets under administration as at September 30 increased 0.6% to £134.8 billion from £134.0 billion at the end of June. The figure was boosted by the net new business, as well as a £200 million tailwind from market movements.
The company will release its half-year results on February 22.
Hargreaves Lansdown shares fell 4.9% to 700.80 pence each on Thursday morning in London.
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