Hargreaves Lansdown disclosed a drop in pretax profit for its fiscal-year first half due to one-off costs associated with restructuring, despite a rise in revenue. The company also warned that the challenging environment is likely to persist in fiscal 2024.
Financial Overview
- Pretax profit for the six months ended Dec. 31 stood at 182.5 million pounds, a decline from GBP197.6 million in the first half of fiscal 2023.
- An impairment charge of GBP14.4 million against two specific assets and GBP2.9 million in restructuring costs were reported.
- Despite the profit decrease, revenue increased to GBP368.2 million compared to GBP350 million in the previous year.
Business Performance
- Net new business fell to GBP1 billion from GBP1.6 billion in the previous year.
- Total assets under administration reached a record GBP142.2 billion as of Dec. 31, up 6% from the previous year.
- The company welcomed 20,000 new clients during the period, bringing the total client numbers to 1.82 million.
Future Outlook
Hargreaves Lansdown anticipates the current uncertain economic climate to persist, impacting investor confidence moving forward.