Hargreaves Lansdown Soars Amid Customer Interest in Lloyds

  • Broker has "considerable interest" from clients for Lloyds
  • Net first quarter inflows increase 47 percent from a year ago

Hargreaves Lansdown Plc, the British retail broker founded in 1981, jumped after reporting a 47 percent surge in net new business inflows for its fiscal first quarter and clients signaled interest in a share sale of Lloyds Banking Group Plc next year.

The shares increased 4.1 percent to 1,336 pence at 10:16 a.m. in London, the biggest intraday gain since Sept. 9, after the firm said it won 1.4 billion pounds ($2.1 billion) of net new money in the three months through September from a year earlier, according to a statement on Wednesday. The number of clients using its trading platform rose by 24,000.

Chancellor of the Exchequer George Osborne has pledged to build a “share owning democracy” in the U.K. with a plan to offer about 2 billion pounds of Lloyds to individuals in early 2016. Retail brokers such as Hargreaves Lansdown have benefited from past privatizations including the initial public offering of Royal Mail Plc in 2013.

“Early indications suggest considerable interest in next year’s Lloyds share sale,” Hargreaves Lansdown Chief Executive Officer Ian Gorham said in the statement. “A sizable number of people buy their first ever share via an IPO, and retail share offers are therefore very important in encouraging the U.K. public to invest.”

The company’s net revenue rose 11 percent to 78.5 million pounds in the period. The Bristol-based firm said in the statement it won about 3,000 clients and about 100 million pounds of new business in a three-month period two years ago from the Royal Mail IPO.

The shares have gained about 32 percent this year.

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