Hargreaves profits jump 28% despite drop in inflows

Hargreaves Lansdown has reported record profits of £72 million for the second half of 2011, a 28% rise compared to the same period in 2010, despite a drop in inflows as difficult market conditions took their toll.

Assets under adminstration rose 5% to £23.4 billion, compared to the last reported figure, £22.3 billion in September 2011. But net business inflows fell 13% to £1.16 billion, down from £1.34 billion over the second half of 2010.

Chief executive Ian Gorham said the results were encouraging given the difficult market conditions.'This record result has been achieved despite the continued backdrop of economic uncertainty both at home and abroad,' he said. 'Only twice during the 30 years of Hargreaves Lansdown's  history has there been investing conditions this poor.'

He said the main driver of asset growth was Hargreaves' Vantage platform, adding that Sipp sales had risen, boosted by simplified tax rules, while ISA sales had remained 'reasonably robust'.

The group also increased its share in the retail stockbroking market by 2%, and attributed the rise to cuts to its stockbroking fees.

Hargreaves' corporate proposition also grew during the period, with 12 schemes signing up to its Corporate Vantage service, leading to a 90% rise in assets to £63.7 million.

Shares in Hargreaves Lansdown dropped 2%, or 10p, to 451p, on the news.