Hargreaves Lansdown breaks more records

Hargreaves Lansdown continues to go from strength to strength with another set of record numbers, and although shares have lost ground this morning, brokers see plenty of value in the firm over the longer term.

In the six months to 31 December revenue rose 16% to £112.9 million and underlying profit jumped 28% to £72 million, both of which represented new highs. Meanwhile, new clients for the first half of the year at 16,000 matched the record set the previous year.

The Bristol-based wealth firm also saw £1.16 billion of new business for the six months, although this was lower than the £1.34 billion of the corresponding period of the previous quarter due to the market volatility.

Assets under administration rose by £1.1 billion, or 5.5%, to £23.4 billion. The numbers allowed the firm to reward its shareholders with an interim dividend of 5.1p, a 13% increase on the previous year.  

The main driver of Hargreaves Lansdown's asset growth was again derived from Vantage, where the Sipps saw a net new business increase year on year, benefiting in part from the simplified tax rules.

Elsewhere in the firm, the discretionary and managed division posted a 14 % increase in revenue with assets under management on average 11% higher, which helped to increase the renewal income and management fees in the period.

The group also said the impact of the Finacial Services Authority's (FSA) platform paper is 'minimal' and that it 'remains confident' in its ability to accommodate changes 'without a material effect on profitability'.

Hargreaves Lansdown chief executive Ian Gorham (pictured) acknowledged the strong performance of his firm, pointing out that only twice in its 30-year history had the background trading conditions been so poor.

‘This record result has been achieved despite the continued backdrop of economic uncertainty both at home and abroad.  Investor confidence has deteriorated during the last 12 months, Gorham said.  

He added: 'Total UK net retail sales of funds have fallen to levels only previously seen during the credit crunch of 2008.  The UK is also courting a double-dip recession and the average member of the UK investing public feels poorer today than a year ago.’