Hargreaves Lansdown sees revenue jump 27% in first quarter

Hargreaves Lansdown assets under management were hit in the turbulence of the first quarter but it still managed to post a healthy rise in revenue and clients.   

In what is traditionally its quietest period of the year, the Bristol-based wealth manager registered a £57.2 million jump in revenue from 1 July to 12 October, a rise of 27% year on year.

Net new business inflows rose 24% to £0,68 billion, while client numbers rose by 8,000 versus 7,000 in the previous year to stand at 388,000.

However, the firm was not totally immune to the tough conditions, with assets under administration falling to £22.3 billion by the end of September, a decline from £24.6 billion at the end June.

This decline is reflected by the 14% fall in the FTSE All Share over this period. It is also represented by a sharp rise in equity deal volumes, which totalled 378,000 in the volatility representing a 42% increase on the previous year.

The market focused on the positives though, with shares in the firm rising by 2.6% to 493.7p in the first hour of trading, making it one of the top blue chip performers in early business.

The firm's chief executive Ian Gorham (pictured) said: 'The first quarter is traditionally our quietest period and tends to not be a strong indicator of the company's annual performance. Nevertheless, the quarter's results have been encouraging in a difficult period.

He added: 'This time last year I noted the prospect of fears of a double dip, doom and gloom, cuts, and public sector union threats.

'One year on and despite a temporary recovery on the markets in between, the same threats exist and indeed have now been exacerbated by the sovereign debt worries of countries in the European Union and potential slowing economic growth in other key areas of the world.'

Gorham said that future stock market levels and investor confidence would have a significant part to play during the remainder of its financial year, pointing out that in September it had seen clients and potential clients delaying their investment decisions.

However, he remains confident the firm can continue to deliver in these testing times. 'I believe that in spite of the current economic uncertainties the company remains well placed to continue to grow client numbers and assets,' Gorham said.