Hargreaves Lansdown achieves record AuA in first quarter

15th Oct 2013 07:06

Hargreaves Lansdown achieved record assets under administration (AuA) in the first quarter of fiscal year 2014.The financial services company reported AuA of £39.3bn in the three months to September 30th, up 7.9% from the previous quarter's £36.4bn. The value of assets held in the group's Portfolio Management Service and range of multi-manager funds climbed 10% from £3.34bn as at the end of June to £3.66bn at the end of September.Revenue jumped to a new quarterly high of £77.9m, a 13% increase on the prior year. Hargreaves said the record results were driven by new business, which rose 129% year-on-year to £1.25bn, along with improved investor confidence, the success of strategic initiatives and improved stock markets.The company brought in 20,000 new clients, up 186% on the quarter. Share dealing volumes were up 62% year-on-year to 582,000, boosted by improved investor confidence.During the quarter, the company had a strong cash and balance sheet position, free from debt and with a high level of surplus regulatory capital.Last month the firm paid a final dividend and a special dividend of £109.1m.In the second quarter, Hargreaves has seen unprecedented public interest in the flotation of the Royal Mail with a large proportion coming from first-time investors."The rules of the offer prevent us from immediately disclosing details of participation through Hargreaves Lansdown, but suffice to say it was immense," the company said in a statement. At the time of the Royal Mail's initial public offering on Friday, Hargreaves experienced troubles with its internet and phone trading systems as it was unable to cope with the high level of demand. Hargreaves said: "We consider there are no notable financial implications, but we do not underestimate the inconvenience caused to some clients, and have apologised to clients who experienced delays. We will consider any lessons to be learned for the future." Looking ahead to the coming months, the company will be launching its iPad app and a number of other new initiatives. The firm said it remains confident of growing the business, dependant on the health of the stock market and investor confidence.RD