Hargreaves Lansdown posts record revenues and profits

Financial service company Hargreaves Lansdown on Wednesday posted record revenues and profits for the last half of 2012, driven by a boost in client numbers.

The FTSE 100 company said revenue was up 24% to £140.3m, while profit before tax rose 30% to £93.7m.

Chief Executive Officer Ian Gorham said Hargreaves flew in the face of a global financial crisis with an expanding customer base, particularly in its 'investment supermarket' service Vantage which grew by 21,000 clients to 446,000 over the period.

"Despite continued economic uncertainty in the UK, Hargreaves Lansdown has had the scale, financial strength and market presence to continue to improve its position. Clients appreciate our excellent value, service and informed comment," he said.

"These results reflect our commitment to clients, the financial security of our business and our ability to provide ever more attractive ways of saving money and investing through a Hargreaves Lansdown account.

Total interim dividend increased by 24% to 6.3p per share, compared to 5.1p for the same period a year earlier.

The group's total net business inflows for the six months jumped 42% to £1.65bn and total assets under administration increased by 16% to £30.4bn.

New features and improvements including a new self-invested personal pension loyalty bonus, enhanced equity dealing functionality, new iPad apps and other new functions helped encourage consolidation of assets and improve business.

Strong marketing and significant progress across all services also buoyed results. The Vantage division was the biggest contributor to revenues generating £109.m for the period, a 26% increase.

"I would like to thank all our employees for their valuable contribution in the record achievement of the first six months and for continually striving to deliver and improve our services," Gorham said.

"I would also like to thank our clients for their continued support and recommendation, for which we remain grateful and determined to continue to repay their confidence."

RD