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The Markets
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Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Financial Services

Hargreaves Lansdown disappoints with bigger slide than expected

The UK's biggest investment platform marked down client assets by £11.4bn in the three months to end-March, which was worse than expected, reflecting clients' global equity and tech exposure

Hargreaves Lansdown PLC (LSE:HL.) shares slipped to the bottom of the FTSE 100 leaderboard after a weaker quarter with mark to market worse than expected, per broker estimates.

Shares were trading 7.14% lower at 830.20p by midday.

The investment platform said while its assets under administration (AuA) and other metrics slipped they were in line with company expectations.

Group revenue of £196.5mln for the four months ended April 30, its third quarter, was down 16% on a year ago.

AuA at the end of April was £132.3bn, down from £141.2mln at the end of December and compared to £132.9bn a year ago.

Hargreaves attributed to adverse market movements through exposure to global equity markets, particularly US technology stocks and the Nasdaq down 21% over the period.

Net flows of £2.5bn compared to £4.6bn last year and were also lower than the £3.1bn expected.

The £11.4bn mark to market was worse than expected, said broker Peel Hunt, with analysts adding that commentary from the company suggested that flows picked up in March and April around tax year-end.

Net new clients for the four months plunged year-on-year from 42,000 from 126,000, taking total active clients to 1.73mln.AuA was down and below consensus expectations of £138bn.

The company reiterated its fiscal 2022 guidance, raising expected revenue margin on cash to 30-35bps for the full financial year.

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