View more on these topics

Hargreaves plans to increase advice proposition as profits leap

Hargreaves Lansdown has announced a 46 per cent increase in pre-tax profits for the 12 months to June 30, 2011.

The firm saw profits rise from £86.3m to June 30, 2010, to £126m to June 30, 2011.

The firm says it plans to increase its fee-based advice proposition, citing the fact that the “regulatory and economic challenge presents acute challenges to other firms in the financial sector.”

Hargreaves Lansdown chief executive Ian Gorham says the firm was disappointed by the FSA’s recent “significant U-turn” in last month’s platform paper which suggested execution-only firms may have to abide by the proposed ban on payments between fund groups and platforms. However, he says: “We are confident that we will be able to adapt as a business to meet any regulatory requirements whilst maintaining a clear focus on client service and on the success of our business. There is substantial water to go under the bridge in this debate.”

Hargreaves Lansdown’s share price fell by around 10 per cent the morning after the FSA extended its ban on fund manager rebates to execution-only platforms.

Gorham says that although the costs for retail investors will be driven down in the coming years, Hargreaves should benefit from increased volumes.

The firm has recorded £207m in revenues in the 12 months to June 30, 2011, a 31 per cent increase on the previous year, while total asset under administration also rose 41 per cent in the past 12 months to June 30, 2011, from £17.5bn to £24.6bn.

Gorham says: “Even though the investment market faces economic uncertainty, I believe that the company is extremely well placed to build on the momentum that has been generated. Since the year-end we have seen net new business and net new clients both significantly higher than last year’s comparatives. We shall continue to deliver excellent service, which in turn helps maintain profitable growth and generates value for our shareholders.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. These were HL’s full-year results, not H1/2011, so the first two paragraphs and para seven all need correcting.

Leave a comment

Close

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

Email: customerservices@moneymarketing.com