Client numbers were up 58,000 year on year.

Despite the latest growth in client numbers the rise in the latest quarter was below the 17,000 rise recorded in the same period last year.

The Bristol-based business said that new client growth was driven primarily by new clients in its SIPP and Active Savings accounts. 

Client retention at 91.7% (FY2023: 92.2%) and asset retention at 89.0% (FY2023: 90.4%) reflected a “muted macroeconomic backdrop” and the need for some clients to make cash withdrawals in the face of rising living costs, HL said.

There were signs, the firm said, that more clients were looking to invest in cash-based products to take advantage of high interest rates. The firm’s Active Savings offer, providing access to a number of banking partners, Money Market funds and short-dated bonds were in demand.

Dan Olley, HL’s new CEO, said: "We continue to see net client growth and positive net new business despite the macroeconomic backdrop and its ongoing impact on investor confidence and client behaviour.

“Clients are looking to invest more in cash than risk-based investments, from our Active Savings offer, giving easy access to a range of banking partners, to Money Market Funds and short-dated bonds. Combining this with informative and relevant content provides our clients with a wide range of solutions to meet their saving and investment needs."

Net new business for the firm was £0.6bn during the quarter (down from £1.7bn in the previous quarter) and closing Assets under Administration were £134.8bn, up £2bn on the previous quarter. Net new business on the HL platform fell by £100m.

Revenue for the period was £183.8m, up 13% (Q1 2023: £162.9m).