Hargreaves Lansdown profits up 7pc as client base rises 90 pc

 
Lynsey Barber
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Hargreaves Lansdown reported a rise in profits (Source: Hargreaves Lansdown)

Profits at financial adviser Hargreaves Lansdown rose seven per cent in the year to the end of June on the back of a 29 per cent rise in managed assets, the company said today.

Pre-tax profits reached £209.8m for the year to 30 June compared to £195.2m the previous year.

It added an additional £6.4bn of assets to its books bringing the total to £46.9bn, also increasing revenue by eight per cent to £269.2m against the background of implementing regulatory changes as a result of the Retail Distribution Review.

Chief executive Ian Gorham said the review was a "massive undertaking" but had now come to an end after an 18 month period and staff could now be redeployed.

The review by the financial regulator resulted in a change to fees across the industry from the beginning of the year.

The number of new clients also grew, up by 89 per cent, as did net new business which was up by a quarter.

The flotation of Royal Mail provided plenty of business with 118,000 people buying shares through the broker- around 18.5 per cent of the UK public who invested.

Hargreaves Lansdown said the wider market outlook for 2014 and 2015 was for a return to stronger economic trading conditions and greater capitalisation of banks helping stabilise markets.

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