Share Dealing
Hargreaves Lansdown reports revenue growth and inflows
Rob Langston, 19 April 2011
Hargreaves Lansdown (HL.L) has reported operating revenue of £150.3 million for the nine months to 31 March 2011 compared with £113.9 million during the prior-year period.
It revealed assets under administration (AuA) grew by £1.3 billion during the first quarter of 2011. The financial services provider reported AuA of £23.6 billion at 31 March 2011, compared with £22.3 billion at 31 December 2011.
The Bristol-based company saw the value of assets on its Vantage service grow by to £22.1 billion from £20.9 billion during the same period, adding a further 20,000 customers.
It also reported a rise in new individual savings accounts inflows in the most recent tax year ended 5 April 2011 of £1,089 million, compared with £812 million for the prior tax year.
Ian Gorham, chie f executive at Hargreaves Lansdown, said the third quarter of its accounting year - the first quarter of 2011 - was historically the busiest with the end of the tax year.
However, Gorham said global events had conspired to form 'a less than ideal backdrop for equity investment'.
He said, 'The new tax year sees improvements and simplification in pension allowances that offer opportunity and we believe there may be value for investors in stock markets.
'Against that the full effect of public sector cuts, tax rises and a focus on debt reduction may affect the UK population's investing behaviour.'
He added, 'Uncertainty persists around world events, particularly in key oil producing countries. With this economic outlook, investors may be more reluctant to invest excess cash.'
Gorham also hailed the company's inclusion in the FTSE 100 earlier this year, adding, 'For a company to reach such heights from a standing start, in a single generation, with no debt or material acquisitions is a testament to its founders, its staff and the satisfaction and loyalty of its clients.
'The company is very proud and we thank all those who have worked with us over the years and helped us achieve FTSE 100 status.'
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