FTSE 100-listed Hargreaves Lansdown PLC (GB:HL) reported 50% higher profits in its FY23 annual results, backed by more cash parked by customers in its savings platform to benefit from the rising interest rates. The company witnessed a growth of 67,000 new customers during the year, bringing the total client base to over 1.8 million. The company noted that the ongoing economic challenges are anticipated to continue into the forthcoming financial year, which is expected to boost its savings business.
The stock was trading up by around 2% on Wednesday at the time of writing.
Hargreaves Lansdown is a UK-based financial services company that owns a market-leading investment platform for customers. The company manages around £134 billion worth of investments for its clients.
FY23 Results: Defeating the Economic Challenges
In FY23, the company’s revenue grew 26% year-over-year to £735 million. The assets under administration increased by 8% to £134 billion during the year. The company’s savings platform saw a record influx of new business, totaling £3.2 billion in the fiscal year. This offset the reduced volumes in stockbroking and fund management due to adverse market movements and lower investor confidence. The net new business inflow was down by 13% to £4.8 billion.
The highlight of the results was the pre-tax profit of £402.7 million, marking a 50% increase compared to the previous year and exceeding analysts’ expectations.
Rewarding the shareholders for its positive financial performance, the company announced a final dividend of 28.8p, a notable increase from 27.4p in the previous year. This brings the total dividend for FY23 to 41.5p, which is 4.5% higher than the 39.7p paid in FY22.
Is Hargreaves Lansdown a Good Buy?
HL stock has been rated a Moderate Sell by analysts on TipRanks based on five Sell, two Buy, and one Hold recommendations. The Hargreaves Lansdown share price forecast is 846.01p, which is 3.7% higher than the current price level.
The ratings were assigned prior to the results, and the favourable financial numbers are likely to lead to changes in analysts’ opinions.