Equities
Record profits at Hargreaves Lansdown but fund sales disappoint
Ellie Duncan, 09 February 2012
Hargreaves Lansdown has reported that year-on-year profits soared 28 per cent to a record £72 million for the six months ended 31 December 2011, despite a dip in fund sales.
The financial services provider also announced that revenue was up 16 per cent to £112.9 million in the period, another record result.
However, shares were trading down this morning on the news that total UK net retail sales of funds fell to levels ‘only previously seen during the 2008 credit crunch’.
Shares in Hargreaves Lansdown were down 3.04 per cent at 09.13am to 446.00p.
The FTSE 100-listed company also saw continued growth in Vantage client numbers, up 16,000 from June 2011, to 396,000, yet assets held on the Vantage investment platform declined to £21.9 billion from £23.1 billion at 30 June last year.
Total net business inflows also suffered, down from £1.34 billion in the same period a year earlier, to £1.16 billion, although chief executive Ian Gorham maintained that the figure was ‘healthy’.
‘This record result has been achieved despite the continued backdrop of economic uncertainty both at home and abroad. Investor confidence has deteriorated during the last 12 months.’
Gorham continued, ‘Traditionally the second half of he year, which encompasses the tax years end, is the stronger half, and we are pleased to report a successful pre-cursor to our busy season.’
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