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HL reveals revenue hike

Hargreaves Lansdown has announced a 34 per cent revenue increase over the past 12 months as the group revealed its first annual results as a listed company.

The group’s revenue now stands at a total of £98.8m as of 30 June 2007 up from £73.5m in the same period last year.

Underlying operating profits were also up by 67 per cent to £40.7m, while assets under administration broke the £10bn barrier by also rising 67 per cent from £6.1bn to £10.2bn.

Proportion of recurring revenue increased to 65 per cent, while the group’s underlying profit margin rose to 41 per cent. HL’s underlying diluted earnings per share are also up by 53 per cent to 6.4p.

Hargreaves Lansdown chief executive Peter Hargreaves says the group is pleased by the results but is aware that since the firm’s year end world stock markets have encountered huge turmoil.

He says: “The market is still uncertain of the extent of the problems caused by the United States’ sub-prime lending market. Although Hargreaves Lansdown has no direct exposure to this area, sentiment is likely to cause an overreaction in markets and it is impossible to know when the bottom will occur.

“Going forward our strategy will be “more of the same” in that we will continue to provide first class services to our clients, respond to market conditions and innovate in our approach to marketing and product design.”

HL, which now has over 600 employees, floated on the stock exchange back in May. The release of the results means that both Hargreaves and co-founder Stephen Lansdown will be able to sell 25 per cent of their shares from next September under the terms of the flotation.


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