Hargreaves sees Revenue +15% in 2020, two Directors depart
UK direct-to-investor investment and online trading firm Hargreaves Lansdown released its 2020 year end results this morning (the company has a June 30 fiscal year end), indicating 15% growth in Revenues while assets under administration grew 5%.
The company also announced the resignation of two if its independent directors, with no new replacements yet named.
On the financial side of things:
|
Year to 30 June 2020 |
Year to 30 June 2019 |
Change % |
Net new business inflows |
£7.7bn |
£7.3bn |
+5% |
Total assets under administration |
£104.0bn |
£99.3bn |
+5% |
Revenue |
£550.9m |
£480.5m |
+15% |
Underlying profit before tax* |
£339.5m |
£305.8m |
+11% |
Profit before tax |
£378.3m |
£305.8m |
+24% |
Diluted earnings per share |
65.9p |
52.0p |
+27% |
Ordinary dividend per share |
37.5p |
33.7p |
+11% |
Total dividend per share |
54.9p |
42.0p |
+31% |
Chris Hill, Hargreaves Chief Executive Officer, commented:
We have delivered a strong performance, despite an external environment of persistent challenge.
The benefits of putting our clients at the heart of everything we do, combined with our investment in the scalability, diversity and resilience of HL’s business model, have been demonstrated through a record 188,000 net new clients, bringing total active clients to over 1.4 million and £7.7 billion of net new business, also a record.
At the same time we have completed significant strategic initiatives including launching our new Wealth Shortlist and Fund Finder, as well as completing further work to enhance governance, scalability and resilience in our service to clients.
Our priority has remained our colleagues and clients throughout this challenging period and I am proud of how we have responded. We have not furloughed our employees, enacted any redundancy programmes or sought any Government assistance.
The acute challenges of this year have reinforced the importance of resilience for us all and we will continue to have a key role in helping our clients build resilience into their savings and investments to enable themselves to be confident to manage through difficult periods and events.
Our focus on clients, the trusted relationships we have with them and the investment we have made to broaden and strengthen our proposition, means that we are strongly positioned to help our clients navigate through these unprecedented times. It also provides us with confidence in our ability to deliver sustainable and attractive growth and returns beyond the immediate period of uncertainty.
Regarding the departing directors, Hargreaves said that after a term of nine years serving on the board, and in line with corporate governance recommendations, Stephen Robertson has confirmed that he will not be standing for re-election at the company’s forthcoming Annual General Meeting (AGM) on October 8, 2020.
Fiona Clutterbuck has also informed the Board that, due to other professional commitments, she will also not be standing for re-election at the Company’s forthcoming AGM.
A search process for new non-executive directors is currently underway with the aim of ensuring the composition of the Board will remain appropriate in terms of its size, independence, and in particular diversity.
Deanna Oppenheimer, Chair of Hargreaves Lansdown, said:
“Stephen has made an enormous contribution to the Group during his time with us, bringing considerable client experience as well as good humour and sharp insights to Board discussions. Fiona Clutterbuck has likewise made an invaluable contribution to the Group, not least in her role as Chair of the Remuneration Committee where she has overseen improvements to the process and structure for remuneration at all levels throughout the organisation. I would like to thank them both for their hard work and dedication and they both leave with our thanks and best wishes for the future.”
Stephen Robertson said:
“It’s been an immense privilege to serve on the Board of Hargreaves Lansdown for the last nine years. As demonstrated by today’s strong results, the Company is in the best possible shape and that is a tribute to the work of the executive team supported by the Board whom I will miss working alongside.”
Fiona Clutterbuck said:
“I have hugely enjoyed contributing to the Board of Hargreaves Lansdown and being part of a team that has delivered another year of record growth in challenging conditions. I wish the business continued success over the coming years.”
Hargreaves Lansdown is the UK’s largest direct-to-investor investment service administering £104 billion of investments for over 1,412,000 clients.
Hargreaves full press release on 2020 results can be seen here.