Hargreaves Lansdown reports 20% profits jump

Hargreaves Lansdown has seen profit before tax grow 20% over the 12 months to June 30.

Pre-tax profits rose from £60.9m over the previous 12 months to £73.1m, as revenue jumped 10% to £132.8m.

The jump in profits also reflects the company’s resilience to the capital flight that took hold in the midst of the financial crisis. Assets under management at Hargreaves Lansdown grew over the year to £11.9 billion from £11.1 billion, an increase of 7%.

“We’ve always been banging our jar about our business model,” says Stephen Lansdown, the chairman and co-founder of Hargreaves Lansdown. “It doesn’t matter where our clients’ money is, on our Vantage platform it still remains under management, so they can stay in equities or move into cash.”

Key to the growth of the business, however, has not only been the increase in revenue, but also growth in the company’s client base.

“Clients have stayed loyal with us, and our client base actually increased by 13% last year,” says Lansdown. “We see the Sipp market continue to grow, and in these difficult times people need financial advice and guidance. It has been a tough period but these environments show our strengths.”

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