View more on these topics

Hargreaves Lansdown reveals 20% leap in profits

Hargreaves Lansdown has announced a 20 per cent increase in underlying profits for the financial year.

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.


Your Strategy

This week, Money Marketing launches a new monthly publication, Retirement Strategy, focusing on the pre- and at-retirement market.

CML in Euro warning

The Council of Mortgage Lenders has warned the European Commission to concentrate on macro-economic policies rather than retail mortgage regulation. It has warned of “harmful, unintended consequences” on the UK economy if it conflicts with FSA proposals. The CML also warns the FSA should not press ahead with plans to restrict lending by building societies before completing its mortgage market review.

Aegon produces protection video

Aegon has produced a business protection video in a bid to highlight the risks associated with not having appropriate cover in place.


Global high yield outlook 2018

RLAM’s Head of Global High Yield, Azhar Hussain examines trends in the high yield and loans markets in a short video. Watch the video here Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and […]


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. HL
    With the amount of SIPPS and the direct offer ISA’s they advertise in national newspapers, there’s no wonder they have increased their profits.
    Proper Independent Financial Advice- I don’t think so.

  2. You must be joking 2nd September 2009 at 2:59 pm

    All credit has to be given to HL. Over the last 20 or so years, they’ve seen a niche in the market and exploited it fully.

    And, of course, for the vast majority of their “business” they manage to avoid all the regulatory “mumbo jumbo” the rest of us have to put up with!

    Fantastic business model, providing something that cosumers obviously want. I just hope RDR doesn’t end up causing them problems – sincerely!

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm