Record quarter for Hargreaves Lansdown
Financial service company Hargreaves Lansdown said assets under administration (AuA) reached record levels in the last three months as investor confidence continues to improve.
Financial service company Hargreaves Lansdown said assets under administration (AuA) reached record levels in the last three months as investor confidence continues to improve.
Assets under administration increased by £4.7bn in the three months to March 31st 2013 to £35.1bn. The group also recorded quarterly net inflows of £1.80bn during the period compared to £1.00bn the same time a year earlier.
Year-to-date revenue is up by 24% to £216.6m and new active Vantage clients increased 30,000 in the quarter. Share dealing volumes were 1.35m, a rise of 19% on the comparative quarter last year.
Hargreaves, which recently launched an iPad app, said online search traffic to the website rose 30% on the same quarter last year with 13.6m visits to its website, up 53% on the same quarter a year earlier.
The group said all areas of the business have performed strongly.
Chief Executive Ian Gorham commented: "Investment in the business; introduction of a SIPP loyalty bonus; improved investor confidence; increased marketing activity; and the attraction of equity investment in a low interest rate environment have all contributed to our continued growth."
However he added: "Some caution is warranted. Whilst markets remain buoyant, underlying themes such as Eurozone debt issues, economic woes and instability in certain regions of the globe remain."
"A substantial negative event resulting in a sharp downturn in stock markets would affect revenues in the short term...Whilst strong asset and associated revenue growth continues, 2014 revenue growth will also be subject to some drag from reduced interest income if low interest rates persist."
CJ