3rd Sep 2014 06:49
LONDON (Alliance News) - Hargreaves Lansdown PLC Wednesday reported a 7% rise in full year pretax profit, boosted by growing client numbers and assets under administration, as the investment supermarket was helped by a busy year of stock market activity.
Hargreaves Lansdown increased its full year dividend 8.1% to 32.00 pence from 29.59p.
In a statement, Hargreaves Lansdown said it made a GBP209.8 million pretax profit in the year ended June 30, compared with GBP195.2 million in the corresponding period last year. Revenue increased to GBP358.4 million from GBP292.4 million, due to growth in complementary services such as stockbroking, fund management, discretionary management and pension drawdown services, the company said.
Commission payable rose to GBP66.5 million from GBP23.2 million. Staff costs rose by 2% to GBP51.3 million, while other operating costs increased to GBP31.7 million from GBP27.0 million.
"Our clients have entrusted a further GBP6.4 billion to us such that we now administer GBP46.9 billion of assets. We have also welcomed 144,000 new clients during the year, with clients now totalling 652,000. This has led to an 8% increase in net revenues and 7% growth in profits," Chief Executive Ian Gorham said in a statement.
Gorham also said there are signs of a return to stronger economic trading conditions, adding that greater capitalisation of banks has served to enhance stability across most markets. However, he said it remains to be seen whether this will translate into stronger stock markets.
"In particular markets are likely to be influenced by the performance of Asian economies, particularly China, and markets generally remain subject to the influence of geopolitical events," Gorham said.
By Samuel Agini; [email protected]; @samuelagini
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