Investment firm Hargreaves Lansdown said it was impacted by a “geopolitical climate not seen in any generation” that had caused a slump in investment as it reported losing revenue and profits for the full year.
The company said it had caused “damped flows and lower asset management activity”.
Assets under administration are 9% driven by what the company described as ‘market declines’ to £123.8 billion.
The company’s turnover fell 8% year-on-year to £583 million and pre-tax profits fell 26% to £269.2 million, but the company said it was confident it continued to provide “excellent customer service, strong delivered shareholder return and market leadership”. ”.
Hargreaves Lansdown boss Chris Hill said the company remains committed to its customers to “ensure they get the best results in these challenging times”.
Hill said the year had been one of contrasting moods and that while it had been welcome to see signs of recovery from the coronavirus pandemic, that sense of optimism had been replaced by a new challenge, including inflationary pressures, international conflict and a worsening cost of life crisis that is now impacting so many lives.
He added that the result had “considered a significant drop” in investor confidence.
The group said that given the economic pressures, it was now clear that financial resilience was now a “key priority” in everyone’s lives, adapting to customer needs “which were “quickly changing during the pandemic”.