Strategic report Governance Financial statements Other information SECTION 6: COMPANY FINANCIAL STATEMENTS NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED 6.5 Investment in subsidiaries continued During the year, the Company has impaired its holding in Hargreaves Lansdown Savings Limited by £16.0m and recognised this amount immediately as an expense in the year. The amount was determined by calculation of the recoverable amount, using future cash flows at a discount rate of 9.6%. The carrying amount immediately prior to the impairment was £34.8 million (2020: £28.8 million). The instigation for this impairment was the continued commitment of the Company to support the development of the Active Savings platform as it continues to build its offering, offset against the return being seen on the investment. Sensitivity analysis The valuation was performed over a range of discount and growth rates, with value in use calculations ranging from £12.7m to £25.4m, using discount rates ranging between 8.5% and 10.7%. On 28 February 2020, the Company sold its 78% holding in FundsLibrary Limited for a consideration of £48.8 million , the carrying value of the investment at the date of disposal was £1.3 million and costs to the company to sell were £0.3 million. As a result, the Company has recognised a gain of £47.2 million in relation to the sale. Further details regarding the sale can be found in Note 4.1 on page 162. A list of the investments in subsidiaries is shown below, along with their country of incorporation and principal activity. Unless otherwise disclosed below, all subsidiaries have one ordinary class of share only and all shares are held by Hargreaves Lansdown plc. Country of incorporation Percentage Subsidiary company name and principal Company purpose/function ownership Voting rights Hargreaves Lansdown Advisory Services Limited UK1 Advisory services 100% 100% Hargreaves Lansdown Asset Management Limited UK1 Unit trust and equity broking, investment fund management, life 100% 100% and pensions consultancy Hargreaves Lansdown Fund Managers Ltd. UK1 Unit trust management 100% 100% Hargreaves Lansdown Stockbrokers Ltd UK1 Trading company* 100% 100% Hargreaves Lansdown (Nominees) Limited (100% shares held by Hargreaves Lansdown Asset UK1 Nominee services* 100% 100% Management Limited) Hargreaves Lansdown Insurance Brokers Limited UK1 Dormant company* 100% 100% Hargreaves Lansdown Investment Management Limited (100% shares held by Hargreaves Lansdown UK 1 Dormant company* 100% 100% Fund Managers Ltd) Hargreaves Lansdown Savings Limited UK1 Cash services 92.5% – Ordinary92.5% 100% – Class A Hargreaves Lansdown Savings (Nominees) Limited (100% shares held by Hargreaves Lansdown UK1 Nominee services* 92.5% 100% Savings Limited) Hargreaves Lansdown Pensions Limited UK1 Dormant company* 100% 100% (100% shares held by Hargreaves Lansdown Advisory Services Limited) Hargreaves Lansdown Pensions Trustees Limited UK1 Trustee of the HL SIPP* 100% 100% Hargreaves Lansdown EBT Trustees Limited UK1 Trustee of the Employee Benefit Trust† 100% 100% Hargreaves Lansdown Trustee Company Limited UK1 Trustee of the Share Incentive Plan† 100% 100% HL Tech Sp. Z O. O Poland2 Service Company 100% 100% (100% shares held by Hargreaves Lansdown Asset Management Limited) * Exempt from the requirements for audit under s394A and s448A of Companies Act 2006. † Exempt from the requirement for audit under s479A of the Companies Act 2006. 1 Registered address: One College Square South, Anchor Road, Bristol BS1 5HL. 2 Registered address: Pl. Europejski 1, Warsaw, 00-844, Poland. 175 Hargreaves Lansdown Report and Financial Statements 2021