Hargreaves Lansdown (HL.)

[scrumpyjack]

I can understand why they are the shorter’s favourite.

HL has been extremely successful over the years but it is basically a business with few barriers to entry and headwinds wherever one looks. The authorities are clamping down on their excessive creaming off of interest on client’s money (which has greatly boosted recent results). Their charges on clients holding funds can’t last as competitors cut fees. Net profit margin of 50% plus can’t last? Other brokers charge much less for dealing. OTOH they do have scale which is extremely important in their business. Most costs are relatively fixed.

I have been a client for many years, but am not a shareholder.

I have just been bribed £5k by II to move my Sipp from HL to them. It is an increasingly competitive business!

[simoan]

https://www.investegate.co.uk/announcement/rns/hargreaves-lansdown--hl./half-year-report/8050058

Half Year Report.

A quality company with a shareprice that would scare a professional downhill skier. A shorters favourite.

"Highlights

· AUA up 6% since 30 June 2023 to a record £142.2 billion (H1 2023: £127.1bn)

· Net New Business of £1.0 billion (H1 2023: £1.6bn)

· Revenue up 5% to £368.2 million (H1 2023: £350.0m)

· Underlying Diluted Earnings per Share 34.6p (H1 2023: 35.5p); Interim Dividend increased 4% to 13.2p (H1 2023 12.7p)

· Business-wide review largely complete; tangible progress against initial priorities and clear plan moving forward"

A frustrating share to own. For me, the turnaround plan is taking too long and the jury is still out on the new management team. It still looks cheap though, so what do you do? Answers on a postcard…

[monabri]

https://www.investegate.co.uk/announcement/rns/hargreaves-lansdown--hl./half-year-report/8050058

Half Year Report.

A quality company with a shareprice that would scare a professional downhill skier. A shorters favourite.

"Highlights

· AUA up 6% since 30 June 2023 to a record £142.2 billion (H1 2023: £127.1bn)

· Net New Business of £1.0 billion (H1 2023: £1.6bn)

· Revenue up 5% to £368.2 million (H1 2023: £350.0m)

· Underlying Diluted Earnings per Share 34.6p (H1 2023: 35.5p); Interim Dividend increased 4% to 13.2p (H1 2023 12.7p)

· Business-wide review largely complete; tangible progress against initial priorities and clear plan moving forward"

A frustrating share to own. For me, the turnaround plan is taking too long and the jury is still out on the new management team. It still looks cheap though, so what do you do? Answers on a postcard…

I'm afraid I'd already bought in a few years ago ( way before your "GMS" review) so "frustrating " isn't the word I'd use! Looks like I got it wrong (not for a first time) - can't be right all the time. I was surprised at the shorting levels...HL is the 3rd most shorted company.

[simoan]

A frustrating share to own. For me, the turnaround plan is taking too long and the jury is still out on the new management team. It still looks cheap though, so what do you do? Answers on a postcard…

I'm afraid I'd already bought in a few years ago ( way before your "GMS" review) so "frustrating " isn't the word I'd use! Looks like I got it wrong (not for a first time) - can't be right all the time. I was surprised at the shorting levels...HL is the 3rd most shorted company.

The shorting does not concern me. There is nothing wrong financially with the company which has a very strong balance sheet. And the shorters will have to buy their shares back at some point which will enhance the upside if the new management strategy works. I may add to my position if there are signs of that working later this year. In the meantime I will have to console myself with the well covered dividend and a large dose of hope…

[monabri]

I will have to console myself with the well covered dividend and a large dose of hope…

With talk like that, I didn't realise you'd joined the HYPers?

[simoan]

I will have to console myself with the well covered dividend and a large dose of hope…

With talk like that, I didn't realise you'd joined the HYPers?

Dividends matter to Total Return investors too! Especially where capital return is negative

[idpickering]

Trading Statement,

Highlights

· Good momentum into tax year end with increased gross inflows, net new clients and share dealing volumes.

· Net new business of £1.6 billion in the period and closing Assets under Administration ("AUA") a record £149.7 billion.

· Net new clients of 34,000 in the period, up 48% year on year, taking us to 1,858,000 active clients.

· Revenue for the period of £199.7 million, up 6% (Q3 2023: £188.1m).

https://www.investegate.co.uk/announcem ... nt/8163198

Ian (No holding).

[monabri]

I wonder if HL have benefitted from the outflow of clients from St James's Place?