Financial services provider and asset management group Hargreaves Lansdown said total assets under administration (AuA) rose seven per cent in the year ended 30th June 2012 while profit jumped 21 per cent despite continued market volatility.
In a separate statement the group also announced that co-founder Stephen Lansdown will step down at the group's Annual General Meeting on November 23rd.
Stephen Lansdown commented: "I believe this is the right time for me to step down. The group continues to perform strongly and I have every confidence in the strong management team."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Hargreave's total AuA increased to £26.3bn during the year while revenue for the period increased by 15% to £238.7m. The proportion of recurring revenue rose by three percentage points to 81%.
Pre-tax profit climbed to £152.8m from £126m in 2011 while operating profit margin increased to 63.1% from 59.8% before. Net business inflows fell to £3.2bn from £3.5bn.
"Hargreaves Lansdown has had another positive year. The group has continued to attract significant numbers of new clients and is reporting increased profits despite a year marked by economic and regulatory uncertainty," the company said in a statement.
Commenting on market conditions, the group added: "It is difficult to see the economic storm clouds dissipating in the next 12 months. We believe austerity will continue despite the political clamour for countries to focus on growth. In time a more positive environment might develop, but we do not expect short term improvement."
"There is little prospect of higher interest rates on cash in the near future so equities and bonds remain good alternatives for potential higher income. The depressed levels of equity markets also offer patient investors the opportunity for future capital growth."
The board has declared a final dividend of 10.65p and a total dividend of 22.59p per share, up 20% on last year.
CJ
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
