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Hargreaves Lansdown continues to defy credit crunch with profit hike

Hargreaves Lansdown has revealed a 28 per cent increase in operating profit in the second half of 2008.

Despite continued falls in the market, profit has risen to £34.9m, up from £27.2m for the last six months of 2007.

Revenue has also risen 13 per cent to £65.6m, with both its Vantage platform and third party revenues rising by 20 per cent to £41m and £9.5m respectively.

Total assets under management has fallen 9 per cent from the previous year to £9.9bn.

Diluted earnings per share has also risen by 31 per cent to 5.5 pence with the group offering an interim dividends of 3.065 pence.

Total net business inflows in the six-month period stood at £0.9bn.

Hargreaves Lansdown chief executive Peter Hargreaves says: “These results are not just resilient they are extraordinary. They demonstrate that people are still willing to invest with firms who are efficient, can be trusted and will take them through the case for investing.”

Hargreaves says although he expects good inflows for the firm during the Isa season, it may be 2011 before we see the country come out of recession.

“I don’t think people realised how bad it actually has been and still is. I think the Government should have let some of the banks go bust so people will actually be more careful with their money. I think people have been chasing the highest rates in the safety that the Government will bail them out. We have become a Nanny state.”

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