The UK’s largest retail investment platform Hargreaves Lansdown (LSE: HL) reported a 6.9% increase in first-quarter revenue of fiscal year 2025 and solid client growth as it awaits completion of its proposed acquisition.

Hargreaves Assets Hits £157.3B as Retail Trading Momentum Builds

The company posted revenue of £196.5 million for the three months ended September 30, up from £183.8 million in the same period last year. The growth was driven by increased trading volumes and higher platform revenue, which offset lower interest income from client cash balances.

Assets under administration (AUA) reached £157.3 billion, boosted by £1.5 billion in positive market movements and £0.5 billion in net new business. The firm added 18,000 net new clients during the quarter, more than double the 8,000 acquired in the same period last year. As a result, the total number of active clients increased to 1.9 million.

“With millions of households without enough saved to enjoy a comfortable lifestyle in later life, it has never been more important for the UK to save and invest for their financial futures,” said CEO Dan Olley.

Share dealing volumes averaged 738,000 per month, up from 634,000 in the previous year, with overseas trading accounting for 20.2% of total deals. Client cash balances increased to £12.7 billion, driven by net selling of investments in September.

The company maintained strong retention metrics, with client retention at 92.0% and asset retention at 88.6%, though both figures remained below the firm's longer-term targets.

Hargreaves Lansdown’s Acquisition

The £5.44 billion acquisition of Hargreaves Lansdown by a private equity consortium has also gained significant regulatory momentum. The buyout group, which includes CVC Private Equity Funds, Nordic Capital XI Delta, and Abu Dhabi Investment Authority's subsidiary Platinum Ivy B 2018 RSC Ltd, has secured key approvals from regulators in the UK, EU, and China.

The consortium's offer of 1,140 pence per share, which includes a 30-pence dividend, has already received shareholder approval. While the deal awaits final clearances from Swiss and Turkish authorities, completion is expected in the first quarter of 2025.

“The proposed acquisition of Hargreaves Lansdown has been approved by shareholders and is now subject to certain outstanding regulatory approvals, with completion expected in Q1 2025,” Olley added. “In the meantime, we remain as committed as ever to supporting our clients with the very best service.”

CEO emphasized that during this transition period, the company remains focused on delivering premium service to clients and executing its strategic initiatives.