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Hargreaves Lansdown weak as record assets under administration offset by cautious Brexit comment

The FTSE 100-listed investment platform group saw its assets under management increase by 16% to £91.6bn in the year to 30 June 2018, buoyed by net inflows and market gains
Investment group
But Hargreaves noted: “Brexit is on the horizon and the prevailing political and economic turbulence is having an effect on investor confidence”

Hargreaves Lansdown PLC (LON:HL.) saw its shares fall Tuesday as news of record assets under administration at its year-end was countered by some cautious comments on the impact of Brexit from the investment platform group.

The FTSE 100-listed firm saw its assets under management increase by 16% to £91.6bn in the year to 30 June 2018, buoyed by net inflows and market gains.

READ: Hargreaves Lansdown shares slip as Jefferies downgrades the stock on valuation grounds

The company took in a record £7.6bn in net new business, boosted by a rise in active client numbers to 1.091mln, up 137,000 in a year.

Hargreaves Lansdown said the rise in assets and increased share dealing helped its full-year pre-tax profit grow by 10% to £292.4mln as revenues rose 16% to £447.5mln, although costs increased by 25% as the firm invested in staff, marketing and technology.

The group is paying a total dividend for the year of 40p a share, up 38% on last year, bolstered by the reinstatement of a special dividend of £37mln.

Chris Hill, Hargreaves Lansdown’s chief executive Chris Hill said: "We have had another year of strong growth, in client numbers, net new business, market share and profits, driven by our continued commitment to provide excellent levels of service."

But, he added; “Brexit is on the horizon and the prevailing political and economic turbulence is having an effect on investor confidence.”

In early morning trading, Hargreaves Lansdown shares were 3.6% lower at 2,041p.

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