Hargreaves Lansdown share price slides as net business inflows slow

on Feb 4, 2015
Updated: Oct 21, 2019

Shares in Hargreaves Lansdown (LON:HL) have lost more than four percent in early morning trading in London after the FTSE financial services group reported that its net business inflows had dropped during the first half of its financial year. The company, however, posted record high assets under administration and hiked its interim dividend.

As of 08:27 GMT, Hargreaves Lansdown’s share price had shed 4.61 percent to 996.78p. The shares have lost nearly a third of their value over the past year.
The FTSE 100 company announced in a statement this morning that its net business inflows had fallen 20 percent year-on-year to £2.25 billion in the six months ended December 31, 2014, while profit before tax came in two percent lower at £101.9 million. Hargreaves attributed the decline to “muted stock markets and retail investing”, as well as a stronger comparative period in the previous financial year when the company “enjoyed the dual boost” of rising stock markets and interest created by the Royal Mail Group (LON:RMG) share offer which added about £150 million of net new business.

Hargreaves Lansdown, however, revealed record assets under administration of £49.1 billion and reported continued growth in clients to 675,000. The company announced a dividend per share of 7.3p, up four percent year-on-year.
The financial services group also commented on the upcoming general election in May, noting that while it expected the event to create “some detrimental uncertainty in the election month itself,” data suggested that the negative impact would be “balanced by retail investor enthusiasm in the months prior to the election to invest under the status quo”.
As of January 31, the consensus forecast amongst 23 polled investment analysts covering Hargreaves Lansdown for the Financial Times has it that investors should hold their position in the company.The 15 analysts offering 12-month price targets for the blue-chip financial services group have a median target of 1,050p, with a high estimate of 1,495p and a low of 770.00p.
As of 09:05 GMT, Wednesday, 04 February, Hargreaves Lansdown PLC share price is 992.00p.

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