Hargreaves Lansdown shares have fallen sharply this morning after the group announced its interim results and a reversal of some of its new pricing plans.
After a strong run, the platform's results for the six months to 31 December 2013 prompted a fall of more than 6% in its share price this morning to around £14.00.
The drop has been pinned on figures which failed to meet consensus expectations, as well as the group's decision to reverse plans to increase charges for holding investment trusts.
"The shares have been very strong performers this year so far, rising by c10% relative to the market, and this morning's results appear to have missed consensus slightly, owing to net interest margins on cash holdings falling from their equivalent in H1 2013," said analysts at Shore Capital.
Hargreaves saw revenue rise 13% to £158.4m for the six months to 31 December 2013, compared to a consensus of around £166m, according to Shore.
Meanwhile pre-tax profits rose 11% to £104.1m, compared to consensus expectations of around £107m.
The platform added that assets under adminstration rose 43% in the last year to £43bn following a strong final six months.
New business inflows stood at £2.8bn over the second half of 2013, up 70% on the first half, with the platform seeing a spike in traffic and activity following the float of Royal Mail.
Hargreaves also announced it has reversed a decision to increase charges for clients who hold investment trusts as part of a new pricing model announced last month.
Today the group said such clients will now “pay no more in future than they do today” due to the unpopularity of the move.
