View more on these topics

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.

Recommended

Performance art

Why are performance figures left out of group pernsion statements?

Colin Snowdon

On the crest of a Wave, having successfully steered his third lender start-up out of the docks, this captain of the mortgage industry is confident that he can chart the choppy waters ahead and ride out a possible credit storm. By Will Henley

Voice of hope

Summer may have been fairly miserable but there has been a golden ray of sunshine for every IFA firm since the FSA board met in July and approved proposals to reform the Financial Services Compensation Scheme. It is also good news for consumers who will benefit from a scheme, now given a new lease of life, which will offer some financial recompense when no one else can. The FSCS is a vital regulatory safety net which helps maintain consumer confidence in our industry.

Broker talkback

Do you think it is acceptable for fund managers to charge a premium for consistently outperforming funds?Yes 38%No 62%No “Charging a premium is usually a one-way street, in that if a fund performs, they raise the fee but if it fails over a period – as most inevitably do – the lower charge will not […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment