Hargreaves Lansdown achieves record inflows and boosts profits on trading boom

News Team, 07/08/2020

Hargreaves Lansdown (HL) has delivered a strong result for its full year ending 30 June, off the back of record inflows and frenetic trading activity.

The fund supermarket and savings platform, which provides tax wrappers and financial advice, produced a pre-tax profit of £378.3 million in the year to 30 June 2020, up 24 percent on 2019’s £305.8 million.

This figure included a £38.8 million gain relating to the sale of data provider FundsLibrary to Broadridge in January, which if removed, would give an 11 percent increase in underlying profit before tax.

Revenue for the year was £550.9 million, up 15 percent on 2019’s £480.5 million, driven by higher asset levels and record share dealing volumes seen in the second half of the year.

Transactional revenue, made up mostly of stockbroking commission and advisory-driven event fees, was up 66 percent to £140.1 million (2019: £84.3 million), with overall client equity deal volumes increasing 95 percent year-on-year.

This offset a fall in annual management charges on the HL Funds which fell in line with their lower average asset values seen this year.

“This strong revenue result in a period of difficult external conditions clearly shows t...

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