Hargreaves Lansdown cautions over ‘low investor confidence’
Shares in the online trading platform slipped in early trading after it revealed softer demand for funds and shares.
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Your support makes all the difference.Hargreaves Lansdown has revealed plans to hike dividends after higher profits but warned that “low investor confidence” has hit savers’ demand for stocks.
Shares in the online trading platform slipped in early trading after it revealed softer demand for funds and shares, blaming the economic backdrop.
Chris Hill, chief executive officer of the group, said: “Whilst challenging external conditions and low investor confidence impacted asset values and stockbroking volumes in the period, clients have benefited from our diversified platform and we have progressed across all the strategic priorities that we set out a year ago at our capital markets day.”
The firm revealed that most of its sales were within the group’s cash savings service.
I'm delighted that we have delivered a strong financial performance over the first half of the year
Bosses at the Bristol business were positive about its financial performance over the latest half-year as it posted higher revenues and profits.
Hargreaves Lansdown reported that revenues grew by a fifth to £350 million over the six months to December 31, compared with the same period last year.
It added that pre-tax profits lifted by 31% to £197.6 million for the half-year, compared with a year earlier.
Mr Hill added: “I’m delighted that we have delivered a strong financial performance over the first half of the year.
“The progress we have made over this period is the direct result of the hard work of each of my colleagues and I would like to thank them for their ongoing efforts.”
Julie Palmer, partner at Begbies Traynor, said: “The boost Hargreaves Lansdown got from successive lockdowns when many played the markets as they were unable to spend their money in the usual ways is now fading, and the recent uncertainty in the financial markets can be seen in the company’s slowing numbers of new business and clients.”
Shares in Hargreaves Lansdown were down 5.6% at 895.2p on Wednesday morning.