UK direct-to-investor investment and online trading firm Hargreaves Lansdown PLC (LON:HL) today published a trading update in respect of the three month period to 30 September 2021 (Q1 FY22).

Net new business was £1.3 billion during the period (2020: £0.8bn) driven by higher client numbers, ongoing wealth consolidation on to our platform and flows into Active Savings. The company said this is a pleasing result given the seasonal quieter summer period and the easing of lockdown restrictions.

A positive market movement of £1.2 billion, combined with net new business has driven AUA to £138.0 billion as at 30 September 2021.

Hargreaves Lansdown welcomed 23,000 net new clients in the period (2020: 31,000), taking active client numbers to 1,667,000.

Revenue for the period was £142.2 million, down 1% on last year (2020: £143.7m). Asset based revenues were higher, driven by net inflows and positive market movements as demonstrated by the FTSE All Share, which was up 23% versus the comparative period. However this was more than offset by previous guidance of a drop in interest on client money and a reduction in share dealing revenues.

As anticipated share dealing volumes have declined post COVID lockdowns and across the quarter averaged 861,000 deals per month versus 980,000 in the quarter last year and 479,000 the year before. This equates to c40,000 deals per day which is in line with the guidance Hargreaves Lansdown gave for this financial year.

Let’s recall that, for the full year ended 30 June 2021 (FY21) Hargreaves Lansdown saw net new business of £8.7 billion (2020: £7.7bn) driven by increased client numbers, continued wealth consolidation onto Hargreaves Lansdown’s platform and strong trading through the COVID-19 period.

During the year to 30 June 2021, Hargreaves Lansdown introduced 233,000 net new clients (2020: 188,000 or 170,000 excluding direct book acquisitions) to its services and grew its active client base by 17% to 1,645,000.

Total AUA increased by 30% to £135.5 billion as at 30 June 2021 (£104.0bn as at 30 June 2020). This was driven by £8.7 billion of NNB plus positive market movement of £22.8 billion.

Revenue for the year was £631.0 million, up 15% (2020: £550.9m), driven by higher average asset levels and record share dealing volumes for the year.