Hargreaves Lansdown (HL) Shares Dropped 8.6% on H1 ’24 Results

The Hargreaves Lansdown PLC (LON: HL) share price dropped 8.57% on its financial results for the six months ended 31 December 2023. The company reported that its Assets Under Administration (AUA) experienced a commendable increase of 6%, reaching an unprecedented level of £142.2 billion, compared to the first half of 2023, when it was recorded at £127.1 billion. 

The growth underscores the company's robust performance and ability to attract and manage substantial assets, reflecting the trust and confidence of its clients. The company secured £1.0 billion in net new business, a slight decrease from the £1.6 billion garnered in the first half of 2023. 

The British financial services company reported that its revenue generation also saw a positive uptick, with a 5% increase to £368.2 million, up from £350.0 million in the first half of 2023. This rise in revenue highlights the company's successful execution of its business model and its ability to generate increased income from its operations. 

The company reported underlying diluted earnings per share at 34.6p, slightly down from 35.5p in the first half of 2023. In a move reflecting confidence in its financial health and commitment to shareholder value, the interim dividend was raised by 4% to 13.2p from 12.7p in the first half of 2023. 

A comprehensive review of the business operations has been largely concluded, marking a significant milestone in the company's strategic evaluation process. The review has led to tangible progress in addressing initial priorities and laying down a clear and structured plan for future growth and improvement.

Dan Olley, the Hargreaves Lansdown CEO, commented: “Our first half results are a reflection of the fundamentals of our business; AUA has increased to a record £142.2bn, revenue has increased 5% to £368.2m, and our underlying profit before tax at £221.5m is also up 5%. It is now six months since I took over as CEO, and it is clear that the business is built on strong foundations, a proud heritage, with a trusted brand and knowledgeable, client-focused colleagues. What is also clear is the work to be done to capitalise on those foundations to reposition HL to take advantage of the structural growth opportunities ahead.”

Hargreaves Lansdown share price. 

The Hargreaves Lansdown share price dropped 8.57% to trade at 733.8p from Wednesday’s closing price of 802.6p.