Strategic report Governance Financial statements Other information STRATEGY KEY PERFORMANCE INDICATORS CONTINUED Client proposition and engagement Financial growth Net new clients Profit before tax (PBT) Represents the change in active clients Progress for the year Why Progress for the year between the opening and closing position for •A record year adding 233,000 net new clients. Gathering and retaining assets and clients • Investment in technology and operations the year (unique number of clients holding at Significant marketing and advertising in the drives revenue. This is managed on a scalable ensured we were operationally resilient least one account with a value over £100 at the • platform to deliver improved operating profits. enabling us to cope with record client year end). second half of the year including our second transactions during the COVID-19 period. brand awareness campaign building on the Principal risks Why success of last year’s. Strategic, operational, and financial. • PBT on an underlying basis grew 8% When added to our existing client base the New clients added across our range of (after removing last year’s £38.8m gain greater the number of new clients, the better •accounts and across all demographic on disposal of FundsLibrary) on the back the potential for growing future AUA. segments. of growth in assets and clients and record share dealing volumes. Principal risks Result Result Strategic and operational. 233,000 £366.0M (2020: 188,000) (2020: £378.3m or an underlying £339.5m) Digital visits Diluted earnings per share (Diluted EPS) Represents the number of visits to our Progress for the year website plus the number of app launches. •Significant uplift in service, market reporting, Why Progress for the year education and reassurance communications This is a measure of profit per share and is • The growth in the underlying diluted EPS was Why during COVID-19. a metric used to determine value created driven by the breadth of the business model Provides a view of the engagement and for shareholders. and continued strategic execution. reach that Hargreaves Lansdown has with •Increased brand awareness through its digital footprint. our second national TV, press and Principal risks digital campaign. Strategic, operational, and financial. Principal risks Result Strategic and operational. •Enhanced functionality of the mobile app 62.5P including Active Savings balances. (2020: 65.9p or an underlying 57.8p) Result 393M (2020: 249m) 28 Hargreaves Lansdown Report and Financial Statements 2021