View more on these topics

Hargreaves co-founder steps down from board as firm announces 21% profit

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.”

Recommended

2

Sheriar Bradbury: Get ready for the land grab

The tightening of regulation is inevitably producing casualties, the largest and most recent being Honister. Large numbers of IFA firms still have operations built on self-employed advisers and very high payaways of commission (like Honister) and the FSA has made it pretty clear that they are not going to humour such firms just because they […]

RBS shareholders look to sue for £3.3bn

Royal Bank of Scotland shareholders are in talks with litigation funds over launching a potential £3.3bn lawsuit against the bank and former chief executive Fred Goodwin over an ill-fated rights issue in 2008. According to reports, the shareholders, known as the RBoS Shareholders Action Group, are looking to sue the bank, Goodwin, former chairman Tom […]

OECD cuts UK growth forecast

The Organisation for Economic Co-operation & Development has cut its growth forecast for the UK, and expects the economy to shrink by 0.7 per cent during 2012. The OECD expects the UK to contract by 0.7 per cent in the third quarter before returning to growth of 0.2 per cent in the fourth quarter of […]

10

Roger Edwards: 3 reasons clients don’t take out protection

When I first started working in protection insurance 20 years ago, there were no mobile phones, internet or even individual computers on desks. We had to work out life assurance quotes from rate books, get them typed up by the typists and then fax them out to advisers. Now of course we have instant access […]

Martin Foden discusses how convenience is affecting the construction of fixed income portfolios

In this short video, Martin Foden, head of credit research at Royal London Asset Management, discusses how convenience is affecting the construction of fixed income portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment