In today’s trading update (10 October 2019), Hargreaves Lansdown (HL/), one of UK’s largest wealth managers, saw a rebound in new client business and revenue.
For the quarter from 1 July to 30 September, the firm report net new business of £1.7 billion. Meanwhile, its asset under administration (AUA) rose 3% to £101.8 billion. Net revenue for the quarter is up 6% to £128.1 million.
The UK largest fund supermarket also acquired new clients of 35,000, taking its active client numbers to 1,260,000.
Chris Hill, Hargreaves’ CEO, is ‘pleased to report a solid start to out financial year for client, net new business and revenue growth.’
The past few months saw many Hargreaves Lansdown clients impact by the Woodford saga. But the firm is now moving away from the issue. Some senior directors have declined this year bonus to take responsibility for its association with the Woodford fund.
In terms of stock performance, Hargreaves has suffered a sell-off prior to the release of today’s trading update. Prices are trading around the 1,800p mark, about 25% below its all-time high reached on the 16 May 2019.
Technically, the stock is trading beneath its long-term trend. The next downside support is at 1,600p.
Hargreaves’ share slipped 0.3% in early morning trades.