Hargreaves Lansdown AUA Rises Ahead of Acquisition

This was driven by positive market movements of £1.5 billion and net new business of £0.5 billion. The company, which agreed in August to be acquired by a private equity consortium for £5.4 billion, experienced net client growth of 18,000 in the quarter, primarily due to net new clients in SIPP, ISA, and Active Savings accounts. While client retention improved slightly to 92% and asset retention to 88.6%, both metrics remain below the company’s medium to long-term targets. Share dealing volumes averaged 738,000 per month during the quarter, with overseas deal volumes representing 20.2% of total deals. Client cash balances closed at £12.7 billion, driven by net selling of investments by clients in September. Total revenue for the quarter amounted to £196.5 million, up from £183.8 million during the same period last year and slightly below the £197 million reported in the previous quarter. The year-on-year increase was said to have been driven by increased dealing volumes and higher platform revenue from higher AUA levels, which more than offset the year-on-year reduction in revenue on cash from a lower net interest margin. “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,” said Dan Olley, Hargreaves Lansdown’s Chief Executive Officer. “In the meantime, we remain as committed as ever to supporting our clients with the very best service, experience and value, and on executing our strategy. We are particularly mindful of tomorrow’s Budget, and will be on hand to support and guide our clients following any potential changes that are made.”