Hargreaves Lansdown PLC (LSE:HL.) (LSE:HL.) said it delivered a “record performance and exceptional growth” in its latest full year as the investment products provider noted a jump in new clients and a boom in demand for its digital offering during the pandemic.
In its results for the year to June 30, the FTSE 100 firm reported net new business inflows of £8.7bn, up 13% year-on-year, while total assets under administration rose 30% to £135.5bn.
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Underlying pre-tax profits also jumped 8% to £366mln, while revenues rose 15% to £631mln.
Hargreaves’ chief executive Chris Hill also highlighted that the company had seen a record 233,000 net new clients during the year, adding that demand for the firm’s digital services had “soared” with 393mln digital visits and 98% of trades being done online.
The CEO also noted that 83% of new clients in the year were under 55 years old, reflecting the rising interest in savings and investing among younger clients.
Looking ahead, the company said while dealing volumes and client activity had slowed in the summer months as lockdown restrictions were eased, this was in line with expectations and it expected to see “stronger client activity” in its 2022 financial year.
Hargreaves added that it was confident of delivering “attractive earnings growth with improving operating leverage”.
“This has been an extraordinary year and I am proud of how our colleagues responded and continued to deliver to clients throughout this challenging period. We have not furloughed our people, enacted any COVID related redundancy programmes or sought any government assistance,” Hill said in a statement.
“Our focus is, as always, on our clients and their lifelong needs, not just their short-term interests. We have been able to capitalise on this extraordinary year - and enlarge our client base substantially - due to our previous investment decisions and confidence in the opportunity ahead. As the UK's market-leading digital wealth management service we have continuously advanced our service and broadened and strengthened our proposition, as client needs evolve, and the wealth market continues to broaden and digitise,” the CEO added.