Hargreaves Lansdown to launch new funds as profits tumble 26%

Performance down across most metrics

James Baxter-Derrington
clock • 1 min read
The company recorded negative change across most performance metrics compared with the same period last year.
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The company recorded negative change across most performance metrics compared with the same period last year.

Hargreaves Lansdown is set to launch a new range of in-house funds in a bid to improve the competitiveness of its products while its profits tumbled over the first half of the year.

According to the platform's H1 2022 results, profits were down 26% year-on-year, falling to £269.2m over the past six months.

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The company recorded negative change across most performance metrics compared with the same period last year, with net new business down 37%, total assets under administration 9% smaller at £123.8bn and revenue shrinking by 8%.

This also led to a reduction in diluted earnings per share, down 27% to 45.6 pence. HL confirmed the total ordinary dividend would increase 3% to 39.7 pence per share, although the total dividend is down on 2021's figure owing to a lack of special dividend.

However, while many businesses have seen these figures turn red, HL still recorded £5.5bn of net new business alongside a 92,000 increase in active clients and revenue of £583m.

Chief executive Chris Hill attributed the falling numbers to a "combination of macroeconomic and geopolitical events" which have "dented investor confidence" throughout 2022 so far.

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The results also confirmed a new range of HL funds will be launched, boosting the "overall proposition and competitiveness" of its offering while driving inflows.

These funds will be launched with lower management fees than the current multi-manage range and investors in some of the pre-existing funds will be moved into the new lower priced range on launch.

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