Strategic report Governance Financial statements Other information SECTION 6: COMPANY FINANCIAL STATEMENTS NOTES TO THE COMPANY FINANCIAL STATEMENTS 6.1 General information Hargreaves Lansdown plc (the “Company”) is a company incorporated and domiciled in the United Investments in subsidiaries Kingdom under the Companies Act 2006 whose shares are publicly traded on the London Stock The Company is making a significant investment in HL Savings to assist in the development of the Exchange. The address of the registered office is One College Square South, Anchor Road, Bristol Active Savings proposition. Given the expected long term economic benefit that this is expected to BS1 5HL, United Kingdom. The Company is the parent company of the Group, and the nature of the bring, development costs incurred are being capitalised. The parent Company has previously held this Group’s operations and its principal activities are set out in the Operating and Financial Review. investment at cost, in the current year an assessment has been made of the recoverable amount, The Company financial statements are presented in millions of pounds sterling which is the currency which requires estimation of future cash flows and appropriate discount rates for the purpose of its of the primary economic environment in which the Company operates. calculation. A sensitivity analysis of this estimate is presented in note 6.5. Basis of preparation 6.4 Profit for the year The separate financial statements of Hargreaves Lansdown plc have been prepared in accordance As permitted by Section 408 of the Companies Act 2006, no income statement or statement of with international accounting standards in conformity with the requirements of the Companies Act comprehensive income is presented for the Company. The Company recorded a profit for the financial 2006 (‘IFRS’) and the applicable legal requirements of the Companies Act 2006. year ended 30 June 2021 of £197.2 million (2020: £199.4 million). The Company financial statements are prepared on a going concern basis. The Directors believe that they have a reasonable expectation that the Company has adequate resources to continue The Auditors’ remuneration for audit and other services is disclosed in note 1.4 to the consolidated in operational existence for 12 months from the date the financial statements are adopted. financial statements. The financial statements have been prepared on the historical cost basis. Accounting policies 6.5 Investment in subsidiaries have been applied consistently throughout the current and prior financial year. 6.2 Significant accounting policies Investments in subsidiaries are held at cost, being the fair value of consideration paid and capital contributions made to the subsidiaries. The accounting policies of the Company are the same as those of the Group which are set out in Impairment assessments are performed at least on an annual basis for all subsidiaries to assess the relevant notes to the consolidated financial statements, except that it has no policy in respect whether the valuation is still appropriate. A comparison is made between the recoverable amount of consolidation and investments in subsidiaries are carried at historical cost, less any provisions and the carrying value. This requires the calculation of either the fair value, less costs to sell of each for impairment. subsidiary or the value in use. Value in use is calculated as the present value of discounted cash 6.3 Critical judgements and key sources flows over an appropriate period at a discount rate appropriate for each subsidiary. Any losses are recognised immediately in the income statement. of estimation uncertainty As noted in note 5.2 to the Group financial statements the preparation of the financial statements Year ended Year ended 30 June 2021 30 June 2020 requires management to make estimates and assumptions that affect the reported amount of £m £m revenues, expenses, assets and liabilities and the disclosure of contingent liabilities. There are no Investments in subsidiaries critical judgements used in the preparation of the Company’s financial statements. At beginning of year 60.0 51.7 Increase in investment in subsidiaries 10.5 9.6 The estimates on the following page are made in respect of the Company financial statements only. Impairment of subsidiary (16.0) – Disposal of subsidiary – (1.3) At end of year 54.5 60.0 Comprising: Non-current investments – Investments in subsidiaries valued at cost less impairment 54.5 60.0 174 Hargreaves Lansdown Report and Financial Statements 2021