The UK’s
largest retail investment platform Hargreaves Lansdown (LSE: HL) reported a
6.9% increase in first-quarter revenue of fiscal year 2025 and solid client
growth as it awaits completion of its proposed acquisition.
Hargreaves Assets Hits
£157.3B as Retail Trading Momentum Builds
The company
posted revenue of £196.5 million for the three months ended September 30, up
from £183.8 million in the same period last year. The growth was driven by
increased trading volumes and higher platform revenue, which offset lower
interest income from client cash balances.
Assets
under administration (AUA) reached £157.3 billion, boosted by £1.5 billion in
positive market movements and £0.5 billion in net new business. The firm added
18,000 net new clients during the quarter, more than double the 8,000 acquired
in the same period last year. As a result, the total number of active clients increased to 1.9 million.
“With
millions of households without enough saved to enjoy a comfortable lifestyle in
later life, it has never been more important for the UK to save and invest for
their financial futures,” said CEO Dan Olley.
Share
dealing volumes averaged 738,000 per month, up from 634,000 in the previous
year, with overseas trading accounting for 20.2% of total deals. Client cash
balances increased to £12.7 billion, driven by net selling of investments in
September.
The company
maintained strong retention metrics, with client retention at 92.0% and asset
retention at 88.6%, though both figures remained below the firm’s longer-term
targets.
Hargreaves Lansdown’s Acquisition
The £5.44
billion acquisition of Hargreaves Lansdown by a private equity consortium has also
gained significant regulatory momentum. The buyout group, which includes CVC
Private Equity Funds, Nordic Capital XI Delta, and Abu Dhabi Investment
Authority’s subsidiary Platinum Ivy B 2018 RSC Ltd, has secured key approvals
from regulators in the UK, EU, and China.
The
consortium’s offer of 1,140 pence per share, which includes a 30-pence
dividend, has already received shareholder approval. While the deal awaits
final clearances from Swiss and Turkish authorities, completion is expected in
the first quarter of 2025.
“The
proposed acquisition of Hargreaves Lansdown has been approved by shareholders
and is now subject to certain outstanding regulatory approvals, with completion
expected in Q1 2025,” Olley added. “In the meantime, we remain as committed as
ever to supporting our clients with the very best service.”
CEO emphasized
that during this transition period, the company remains focused on delivering
premium service to clients and executing its strategic initiatives.
The UK’s
largest retail investment platform Hargreaves Lansdown (LSE: HL) reported a
6.9% increase in first-quarter revenue of fiscal year 2025 and solid client
growth as it awaits completion of its proposed acquisition.
Hargreaves Assets Hits
£157.3B as Retail Trading Momentum Builds
The company
posted revenue of £196.5 million for the three months ended September 30, up
from £183.8 million in the same period last year. The growth was driven by
increased trading volumes and higher platform revenue, which offset lower
interest income from client cash balances.
Assets
under administration (AUA) reached £157.3 billion, boosted by £1.5 billion in
positive market movements and £0.5 billion in net new business. The firm added
18,000 net new clients during the quarter, more than double the 8,000 acquired
in the same period last year. As a result, the total number of active clients increased to 1.9 million.
“With
millions of households without enough saved to enjoy a comfortable lifestyle in
later life, it has never been more important for the UK to save and invest for
their financial futures,” said CEO Dan Olley.
Share
dealing volumes averaged 738,000 per month, up from 634,000 in the previous
year, with overseas trading accounting for 20.2% of total deals. Client cash
balances increased to £12.7 billion, driven by net selling of investments in
September.
The company
maintained strong retention metrics, with client retention at 92.0% and asset
retention at 88.6%, though both figures remained below the firm’s longer-term
targets.
Hargreaves Lansdown’s Acquisition
The £5.44
billion acquisition of Hargreaves Lansdown by a private equity consortium has also
gained significant regulatory momentum. The buyout group, which includes CVC
Private Equity Funds, Nordic Capital XI Delta, and Abu Dhabi Investment
Authority’s subsidiary Platinum Ivy B 2018 RSC Ltd, has secured key approvals
from regulators in the UK, EU, and China.
The
consortium’s offer of 1,140 pence per share, which includes a 30-pence
dividend, has already received shareholder approval. While the deal awaits
final clearances from Swiss and Turkish authorities, completion is expected in
the first quarter of 2025.
“The
proposed acquisition of Hargreaves Lansdown has been approved by shareholders
and is now subject to certain outstanding regulatory approvals, with completion
expected in Q1 2025,” Olley added. “In the meantime, we remain as committed as
ever to supporting our clients with the very best service.”
CEO emphasized
that during this transition period, the company remains focused on delivering
premium service to clients and executing its strategic initiatives.
This post is originally published on FINANCEMAGNATES.
