Hargreaves Lansdown share price drops as chairman Mike Evans announces resignation - but revenues are up

Caitlin Morrison
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Hargreaves Lansdown is based in Bristol (Source: Hargreaves Lansdown)

Hargreaves Lansdown has announced its chairman, Mike Evans, will step down once a successor has been chosen.

The investment firm said today that the process to appoint his replacement had already begun.

"Under Mike's guidance, the group has become a successful FTSE 100 business combining strong client focus with high service standards," said Hargreaves Lansdown's chief executive, Chris Hill.

"I'm grateful for Mike's insight and contribution to this journey and wish him well going forward."

Evans said chairing the company over the past eight years had been "a real privilege".

"I have seen the group grow significantly and establish itself as the UK's leading retail savings and investments platform," he added.

"I believe the group is exceptionally well positioned for the next phase of growth under the leadership of Chris Hill and I am immensely grateful to my fellow board members, the founders and all of my colleagues at Hargreaves Lansdown for their support during my tenure as chairman."

Trading update

Meanwhile, Hargreaves Lansdown reported net new business of £3.3bn in the fourth months to 30 April in a trading update this morning. This brings new business in the year to date to £5.6bn.

The company said assets under administration stood at £77bn as of 30 April, and year-to-date total revenue was £315.7m, up 17 per cent compared to this time last year.

In May last year, Hargreaves was just beginning to feel the bite from Brexit fears ahead of the EU referendum.

The group's founder Peter Hargreaves was firmly in favour of a Leave vote, and the company has since benefited from the weaker pound which has proven attractive for investors.

"We are pleased to report a strong period for net new business, reflecting the diversified nature of Hargreaves Lansdown," Hill said today.

"The breadth of our product offering combined with the provision of high quality services tailored to help meet the needs of our clients has allowed us to deliver significant growth over a period of improving investor confidence. These attributes position us well for the structural growth opportunity in the UK savings and investments market."

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