Hargreaves Lansdown profits up 18% as inflows soar

Hargreaves Lansdown profits increased 18% to more than £86m in the year to 30 June as net business inflows soared.

The company made £86.3m in the period compared with £73.1m in the 12 months to 30 June 2009.

Net inflows climbed from £2bn last year to £3.3bn in 2010, while total assets under administration advanced 47%, from £11.9bn to £17.5bn. Of this, £16.3bn of assets were held within the Vantage service.

"Revenue, profits and earnings per share have achieved record levels and although these measures have been helped by a rise in stock markets across the year, the more significant contribution has been from record organic growth," outgoing CEO Peter Hargreaves says.

He says the company has welcomed 48,000 new active clients on its Vantage platform, taking the total number to 330,000.

"Such organic growth has been made possible by the ever growing reputation we have in our market place," Hargreaves adds.

Revenue for the year was up 20% to £159m, while the proportion of recurring revenue increased slightly to 72%.

There will be a total dividend payment of 11.88p per share, up 18% on last year.

Hargreaves, who will become an executive director of the business and be replaced as chief executive by deputy CEO Ian Gorham, says: "Even though we continue to face economic uncertainty, I believe the company is extremely well placed to build on the momentum that has been generated so far.

"In doing so we will continue to deliver the excellent service that our clients want, which in turn will help maintain profitable growth and generate value for our shareholders."