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09 Aug 2021 | 08:01

Hargreaves Lansdown FY AUM, net new business inflows jump

(Sharecast News) - Hargreaves Lansdown posted a dip in full-year pre-tax profit on Monday, but net new business inflows and assets under administration grew as demand for its services - particularly online - grew. In the year to 30 June 2021, pre-tax profit edged down 3% to £366m. However, net new business inflows rose 13% to £8.7bn, with asset under administration up 30% to £135.5bn and revenue 16% firmer at £631m.

Underlying pre-tax profit pushed up 8% to £366m and the investment platform said the number of active clients was 233,000 higher in the year at 1.645m.

Hargreaves said investor confidence started the year at a low but swung "dramatically" on positive Covid vaccines news and the political certainty provided by the US election and Brexit.

The subsequent upwards trend in confidence, along with a greater interest in markets and trading during lockdown, led to record equity trading volumes, which were up 54% on the previous year.

Chief executive officer Chris Hill said: "We have delivered a record performance and exceptional growth during an extraordinary and challenging year.

"The pandemic has accelerated two trends that were already evident to us: a permanent shift to digital; and a change in the demographic mix. Demand for our digital services has soared with 393 million digital visits and 98% of trades being done online. In FY21, 83% of our new clients were under 55, as we saw younger clients showing an interest investing and saving, prioritising financial resilience as they benefit from the transition of wealth from older generations."

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