Hargreaves Lansdown’s profit jumps to £188 million in the fiscal first half
- Hargreaves Lansdown’s profit jumps to £188 million in the fiscal first half.
- The financial services firm values assets under administration at £120.6 billion.
- Hargreaves declares 11.9 pence per share of interim dividend on Monday.
Hargreaves Lansdown plc (LON: HL) said on Monday that its profit in the fiscal first half came in better than last year despite the newly imposed restrictions in recent months to combat the ongoing Coronavirus pandemic that has so far infected more than 3.8 million people in the United Kingdom and caused over 106 thousand deaths.
CEO Chris Hill commented on the financial update on Monday and said:
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“As our client numbers continue to grow, we are finding that younger people are taking a greater interest in investing for the future, with the average age of our clients continuing to fall.”
Hargreaves Lansdown opened roughly 2.5% up on Monday but lost the entire intraday gain in the next hour. The stock is now trading at £16.88 per share versus a low of £11.58 per share in the last week of March 2020.
Hargreaves reports £299.5 million of revenue in fiscal H1
The financial services company reported £188.4 million of pre-tax profit in the six months that concluded on 31st December. In the same period last year, its pre-tax profit was capped at a lower £171.1 million.
In separate news from the UK, retailer ASOS said it was near striking an agreement to acquiree Arcadia Group’s Miss Selfridge and Topshop for roughly £300 million.
Hargreaves said that its revenue in fiscal H1 printed at £299.5 million versus the year-ago figure of £257.9 million. The British firm valued its net new business at £3.24 billion. In the comparable period of last year, its net new business stood at £2.31 billion.
Hargreaves declares 11.9 pence per share of interim dividend
Hargreaves’ board declared 11.9 pence per share of interim dividend on Monday versus 11.2 pence per share of interim dividend for H1 of fiscal 20202.
The Bristol-based company said that it had £120.6 billion of total assets under administration as of the end of the first half. In H1 of the previous financial year, it had £105.2 billion of assets under administration. In comparison, the FTSE 100 listed company had valued its assets under administration at £107 billion at the end of the first quarter.
Hargreaves Lansdown plc performed fairly downbeat in the stock market last year with an annual decline of close to 25%. At the time of writing, the British financial services firm is valued at £7.99 billion and has a price to earnings ratio of 25.54.