Hargreaves Lansdown earnings boosted by client growth
Hargreaves Lansdown has reported that soaring client numbers boosted profits, but warned of a challenging environment for savings and investment.
The stockbroker said annual pre-tax profits climbed by about a fifth to £265.8 million in the year to 30 June, with active clients rising by 118,000 to 954,000.
Net new business inflows grew by 15 per cent to £6.9 billion and assets under administration rose 28 per cent to £79.2bn.
Chief executive Chris Hill said: “We have had a good year for gathering new clients and assets. I am pleased that we have delivered strong 2017 results in an environment where the UK has many challenges.”
Hill also said there were “considerable” hurdles for those in the saving and investment environment “but there are also opportunities”.
The Bristol-based FTSE 100 company describes itself as the UK’s top “investment supermarket” for private investors, with more than 1,000 staff.
Numis analyst James Hamilton said: “We believe that there is a strong growth outlook for HL with continued substantial net inflows and the potential for HL savings to provide another substantial leg for growth.”
Hamilton added that, with the results better than expected, Numis upgraded its pre-tax profit forecast for this year by 7 per cent to £306.4m and by 3 per cent next year to £341.1m.