Hargreaves Lansdown warns of 'industry-wide slowdown' as assets grow 3 per cent

An 'uncertain market environment and weak investor sentiment' has caused an industry slowdown, Chief executive Chris Hill said (Source: Hargreaves Lansdown Plc)

Hargreaves Lansdown weathered an “industry-wide slowdown,” adding £2.5bn in assets in the last quarter as the company struggled with uncertain markets and investors.

The investment platform grew quarterly revenue 16 per cent to £121m compared to last year.

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It added net new business of £1.3bn during the quarter, driven by investment in digital marketing and 29,000 new clients, taking the total to 1.1m.

Assets under administration, including independent savings accounts, pensions and shares, rose to £94bn.

Active savings, its cash marketplace service, added three new banks to its portfolio, to give customers better interest rates and access to their money.

Chief executive Chris Hill said: “I’m pleased to report a solid start to our financial year for growth in clients, net new business and revenue.

“The past quarter has seen an uncertain market environment and weak investor sentiment resulting in an industry-wide slowdown in net retail flows.

“Despite this backdrop, we believe the strength of our business model positions us well for when sentiment improves.”

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Shares had dropped 3.8 per cent by mid-afternoon.

The company has lost 17.5 per cent of its market value since a five-year peak late last month.