In its latest interim results, the firm said revenue was up at £184.8m at 31 December 2016 and boasted a ‘record level’ of assets under administration which hit £70bn by the end of the year, a 13% increase in six months.
Despite the promising figures and the welcome news that client and asset retention were “strong” at 94.7% and 93.5% respectively, the amount of new business added in the last six months of the year was £2.34bn, down from £2.77bn in the first half of the year.
While chief executive Ian Gorham said it was an “unusual” period due to macro shocks such as Brexit, the vote to leave the EU has not been all bad for the FTSE 100 firm which reported a boom in equity trading in the aftermath of the referendum with 1.95m client driven deals conducted.
In the report, it said one of the “key contributors to profit growth were sustained significantly elevated equity trading volumes since the 23 June ‘Brexit’ vote”, with the number of equity deals up by 51% in the period.
The latest results come after Hargreaves’ ‘biggest ever’ fund launch with the unveiling of the HL Select UK Shares Fund in December which raised £168m during the offer period.
Gorham said: “The diversified nature of the Hargreaves Lansdown business has enabled us to deliver significant growth in both revenue and profit. Despite macroeconomic uncertainties impacting investor confidence and net new business, clients continue to trust us with their money and benefit from our investment services.”
Mobile technology will be a “key part” of their strategy moving forward, Gorham added, pinpointing investor confidence and stock market levels as key signals for the amount of new business the firm will receive 2017.
A dividend of 8.6p per share has been confirmed to be paid on 30 March.
