Investment downturn has caused ‘lower activity across wealth management’
nvestment business Hargreaves Lansdown said it had been impacted by a “geopolitical climate not seen in a generation” that had caused a downturn in investment as it reported full year revenue and profit loses.
The business said it had caused “subdued flows and lower activity across wealth management”.
Assets under administration feel 9% driven by what the company described as “market falls” to £123.8 billion.
Revenue at the firm dipped 8% year on year to £583 million and pre-tax profit dropped 26% to £269.2 million, but the company said it remained confident that it was still delivering “outstanding client service, strong shareholder returns and market leadership “.
Chris Hill, boss of Hargreaves Lansdown, said the business has continued commitment to its clients to “ensure they get the best outcomes during these challenging times”.
Hill said that the year had been one of contrasting moods and that while it had been welcome to see signs of recovery from the coronavirus pandemic, that sense of optimism had been replaced by new challenge, including inflationary pressure, international conflict and a worsening cost of living crisis that is now having an impact on so many lives.
He added that the result had seen investor confidence fall “significantly”.
The group said that given the economic pressures that it was now evident that financial resilience was now a “key priority” in everyone’s lives and that it was adjusting to client needs “which were “already changing fast during the pandemic”.
Credit: www.standard.co.uk /