In the six months ended 31 December 2019, Hargreaves Lansdown received £2.31bn ($3bn) of net new business.
This is a 9% drop year-on-year from the £2.53bn made in the six months ending 31 December 2018.
However, total assets under administration (AuA) were £105.2bn, a 22% rise year-on-year. It is also more than the £99.3bn in AuA in the firm’s full year in 2019.
Revenue was £257.9m a 9% increase from 2018 and profit before tax increase by 12% in the same period to hit £171.1m.
The number of active clients also increased. Hargreaves Lansdown now has 1,272,000 active clients, 50,000 more than in June 2019.
Chris Hill, chief executive at Hargreaves Lansdown, commented: “The first half of our financial year was another period of growth for Hargreaves Lansdown as we reinforced our support for our clients and invested in our differentiated service. Our purpose remains to empower people to save and invest with confidence. To do this we must continuously deliver an exceptional client experience and respond to their evolving needs.
“The external market was challenging in the second half of 2019, with political uncertainty, a General Election in the UK, Brexit and world trade tariffs all raising concerns. As we have seen in previous unpredictable periods, client confidence and retail investment flows were affected. The Investment Association reported weak retail fund flows throughout and the suspension of the two Woodford funds also contributed to the general unease.
“Against this backdrop, we continue to implement our strategy. The benefits of our client focused business model, the broad range of our investments and savings proposition and our leading client service have seen AUA rise 22% over the past year to £105.2 billion and a 12% increase in profit before tax to £171.1 million. Client numbers grew by 50,000 to 1,274,000 and client retention is consistent with prior periods at 93.3%. In addition, our latest share of the direct to consumer platform market has increased from 40.5% to 41.8%.
“Earlier this month we entered into an agreement to sell FundsLibrary Limited, our data management and digital services business, to Broadridge Financial Solutions, Inc. The decision to sell reflected our view that, as a business to business service, it was no longer core to our overall business. The deal is expected to complete at the end of February 2020 and I wish staff, management and business every success in the future.”