Hargreaves Lansdown posts £72m profit

Bristol-based intermediary revealed this morning (9 February) that n the six months to 31 December 2011 it achieved record revenue and profits.

Hargreaves Lansdown has reported a 16 per cent increase in revenues to £112.9m allied to tight control on costs in an announcement to the stock exchange.

The business also declared a dividend date of 5.1p per share.

Article continues after advert

Shareholders who were not on the Hargreaves Lansdown plc share register on 16 March 2012 will also not receive the dividend.

Total net business inflows for the six months at the end of 2011 was £1.16bn.

Total assets under administration stood at £23.4bn.

The statement revealed continued growth in active Vantage client numbers, now 396,000, an increase of 16,000 since 30 June 2011.

Ian Gorham, chief executive of Hargreaves Lansdown, said: “This record result has been achieved despite the continued backdrop of economic uncertainty both at home and abroad.

“Investor confidence has deteriorated during the last 12 months. Total UK net retail sales of funds have fallen to levels only previously seen during the credit crunch of 2008.

“The UK is also courting a double-dip recession and the average member of the UK investing public feels poorer today than a year ago.

“In spite of unfavourable conditions and lower investment values, we continued to see healthy net business inflow, only marginally down on our record previous year, and we welcomed 16,000 new clients to the Vantage service.

“In addition to delivering record revenues and profits we have improved our competitiveness, reduced charges and improved the functionality of our systems. Our range of services and products have been increased and improved in line with our investment supermarket strategy.

“Lower stockbroking fees and Isa management charges were introduced from 1 August 2011, which has led to a rise in our share of the UK stockbroking market during the period. We have continued to see flows of business from competitors which is an emphatic confirmation of our strong market position.

“In turbulent times wise investors focus firstly on the security of their assets and trustworthy service. As a listed company with a 30-year reputation and a strong balance sheet, Hargreaves Lansdown is uniquely placed to deliver that security and service to the UK public.

“There is no doubt that the economic environment remains challenging but we are confident that the still unique Hargreaves Lansdown business model will continue to show itself to be extremely robust.”