Hargreaves Lansdown reveals 20% leap in profits

2 September 2009 8:27 am

The group unveiled profits before tax of £73.1m, up from the £60.9m for the 2008 financial year.

The investment manager has also seen revenue increase 10 per cent to £132.8m, compared to the £120.3m for the 2008 financial year. Assets under administration also increased 7 per cent from £11.1bn to £11.9bn.

The firm's recurring income fell from 72 to 70 per cent, with the group citing a record number of stockbroking deals which increased the level of non-recurring income.

HL has also posted a 29 per cent dividend increase of 10.101 pence per share, compared to 7.809p for 2008.

Chief executive Peter Hargreaves says he is impressed the firm has managed to post increases in revenue and assets under administration after nine and a half years of bear markets, but says the firm will not rest on its laurels.

He says: "Markets are still nervous and we expect more turbulence. We are conscious that some revenues we have enjoyed in the past will be materially reduced.  However my team have identified areas which we believe can be profitable and hopefully replace these lost revenues but market conditions will still have a major part to play. 

"Both new and existing investors are still showing a willingness to transfer to our superior client focused administrative systems and enjoy the experience of dealing with our helpful, knowledgeable staff.  Many investors are seeking alternative income-producing investments to compensate for low interest rates.  We still believe there are many potential new clients in the UK that we should be able to contact who have what we believe are poorly and inappropriately invested funds."

Meanwhile, HL chairman Stephen Lansdown is set to step down as the group's executive chairman. He will step down at the group's AGM on December 1, 2009, but will remain on the board as an executive director.

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