Hargreaves Lansdown has posted a £210m pre-tax profit for the year to 30 June, up by 7 per cent from £195m in 2013.
Revenues increased by 8 per cent from £269m to £292m, while operating costs increased by the same amount from £77m to £83m.
Net profit margin shrank marginally from 71.5 per cent to 71.3 per cent, as total assets under administration rose 29 per cent from £36bn to £47bn.
The business added 144,000 new clients.
Hargreaves says recent FCA papers on non-advised sales represent “positive regulatory change around the information and guidance that we can give to clients”, adding it should allow Hargreaves to expand its “ability to assist clients without increased liability.”
It also adds that following the Budget it will look to expand its range of pension services. The results say: “Our relationship with the client continues for longer under drawdown than an annuity purchase. As we are a major provider of both independent annuity broking and drawdown services in the UK, we are planning a range of enhancements to our pension services.”
Annuity broking income fell from £7.7m in 2013 to £4.7m following the Budget.
The firm says it will look to increase margin by adding more multi-manager funds and “enhance” its cash strategy over the next year to maximise revenues. Earlier this week it was reported the firm would look to apply for a banking licence to allow it to increase its margin on client cash.
It also predicts a reduction in the size of the adviser market, which it says will have a positive impact on the business.
Earlier this year the firm announced its new charging structure ahead of rules introduced in April that prevent it from retaining payments from fund managers. It says that “after an understandable period of familiarisation and questions clients seem to have accepted the changes.”
Chief executive Ian Gorham adds: “During the year we have continued to expand and improve the services we provide to our clients whilst also dealing with major regulatory change. Hargreaves Lansdown has not only retained but furthered its market leading position.”