By Charlie Conchie
The co-founder of trading platform Hargreaves Lansdown has launched a scathing attack on “unnecessary irrelevant” programmes launched by its outgoing chief today, after a collapse in the FTSE 100 firm’s share price over the past three years.
Peter Hargreaves, who co-founded the firm in 1981 and remains its biggest shareholder, called on bosses to push through a swathe of cost-cutting measures and rein in investment on an automated financial advice offering.
“The board indulged in completely unnecessary irrelevant programmes, which have distracted the firm from its prime objective. It’s hardly surprising the shares have collapsed,” he said in an interview with the Financial Times, citing its plans to roll out a ‘hybrid’ financial guidance combining automated advice with financial advisers.
Outgoing chief Chris Hill, who is set to step down in November, unveiled the hybrid advice plans last year in a bid to broaden its offer beyond its bread-and-butter trading services for customers.
However, the plans have done little to arrest a slide in its shares which have slumped around 64 per cent since a May 2019 peak and are trading at around £8.60 per share.
Last year, the firm said costs had bumped up seven per cent to £284.7m on the previous year as profits slumped 26 per cent to the end of June.
Bosses also revealed that they planned to pump £175m into the firm to fuel its technology strategy up to 2026, which sent shares spiralling down over 23 per cent in a week.
Hargreaves called on bosses to push through a “huge round of cost-cutting” and double down on its original strategy in order to turn around the slump.
The attacks today mark the latest in a string of criticism from the Hargreaves Lansdown founder, who branded Hill “completely and utterly useless” and called on the incoming chief to ditch the “rubbish” strategy of his predecessor.
Hargreaves Lansdown did not respond to City A.M.‘s request for comment, but declined the Financial Times request for comment.
The post Hargreaves Lansdown founder attacks firm’s ‘unnecessary irrelevant’ strategy appeared first on CityAM.
