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Hargreaves Lansdown (HRGV) has reported £1.5 billion of net new business in the three months to the end of September, receiving a boost from the fallout from Barclays' disastrous overhaul of its online stockbroking service.
Hargreaves said assets under administration hit £82 billion in September, up 4% over the quarter.
It said in a statement to the stock market: ‘We also benefited from significant transfer activity relating to operational issues on a competitor platform, showing the benefit of our strong reputation for client service.’
In a trading statement the company also said: ‘We also benefited from significant transfer activity relating to operational issues on a competitor platform, showing the benefit of our strong reputation for client service.’
Towards the end of September a number of investment platforms, including Hargreaves, reported that they were seeing a rise in clients transferring from Barclays after the disastrous launch of its Smart Investor platform, replacing its Barclays Stockbrokers service.
At the time Danny Cox of Hargreaves confirmed the platform had ‘seen an increase in the number of people moving across’ from Barclays.
Numis analyst James Hamilton said he expected Hargreaves to continue to benefit from Barclays' woes in the next quarter, pointing to the delays in Barclays customers transferring their assets.
'As well as clients not being able to log into their accounts and not receiving their dividends, the exit process appears to be delayed as well,' he said.
'Consequently, we expect a lag between clients choosing to move to Hargreaves Lansdown and the assets under administration arriving,' he said.
'If a client is transferring Hargreaves Lansdown will only recognise them when their balance is over £100. Consequently, if the transfer is delayed, client and assets under administration recognition could be delayed as well and for that reason we expect Hargreaves Lansdown to report strong net flows and customer growth in the second quarter as well.'
Chris Hill, chief executive officer, said: ‘I'm pleased to report a solid start to the new financial year for net new business and revenue. We continue to place clients at the centre of what we do and our relentless focus on the level of service that we provide is enabling both existing and new clients to save and invest with confidence.’