Hargreaves Lansdown co-founder Stephen Lansdown has stepped down from the firm’s board as the group revealed a 21 per cent jump in profits.
Lansdown founded the FTSE 100 firm alongside Peter Hargreaves in 1981. He had been chairman of the group until 2009 and had served the past two years as non-executive director.
The news comes as the group revealed £152.8m of profits for the 12 months to 30 June 2012, a 21 per cent increase on the £126m for the 12 months to 30 June 2011.
Revenues increased 15 per cent to stand at £238.7m, up from £207.9m for the 12 months to June 2011, while assets under management increased 7 per cent from £24.6bn to £26.3bn.
The group unveiled a final dividend of 10.65p a share, with total dividend for the year standing at 22.59p a share.
Hargreaves Lansdown chief executive Ian Gorham says: “Hargreaves Lansdown has again delivered excellent business growth, with record revenues and profits. New, innovative services have furthered growth in assets under administration and client numbers to record levels of £26.3 billion and 425,000 respectively. Net business inflows were £3.2 billion despite a difficult economic backdrop.”
The firm says it is now fully compliant with the first phase of the retail distribution review, which is to be implemented on 31 December, 2012. The group adds that the second phase set for 31 December, 2013 – which will cover the unbundling of products – is also being prepared for, and that the firm is confident about the proposals despite the detail not being confirmed.
Commenting on the proposals, the group says: “Provided they are applied fairly to all participants in the market and well communicated, our proposition of a strong service and value offering to a loyal client base should help us weather the change well. We have undertaken a range of modelling and preparatory activities and have had dialogue with the FSA.”