Hargreaves Lansdown profits rise 16% as inflows jump 56%

Hargreaves Lansdown has posted a 16% jump in adjusted pre-tax profits for the six months to end 2009, to £43.1m.

The profit, adjusted to exclude one-off costs relating to its new offices, has climbed from £37.3m for the corresponding period in 2008.

Hargreaves grew its assets under administration to £15.6bn, with a 56% jump in new inflows over the six month period to £1.4bn.

Assets under administration held within the Vantage service, the group's direct-to-private investor fund supermarket and wrap platform, increased from £10.9bn to £14.4bn over the half year.

The number of active Vantage clients at end 2009 was 300,000, compared to 282,000 six months earlier.

Vantage clients decreased their cash weightings by year end, down from 16% at end June to 12%. Clients had 27% in direct stocks and shares and 61% in investment funds.

The value of assets held in its managed services, including its Portfolio Management Service and range of multi-manager funds, was up 26% to £1.75bn.

As a large proportion of shares in Hargreaves Lansdown are held by private individuals, the board plans to pay as much dividend as possible prior to the end of the current tax year before the 10% increase to the top rate of tax.

Hargreaves has declared an interim dividend of 8p per share and a special dividend of 1.6p per share, payable on 26 March. This amounts to a total dividend of £44.6m.

"The first six months' trading of the current financial year have been gratifying. We look forward to the next six months," Hargreaves Lansdown chief executive Peter Hargreaves says.

"The performance of our business will depend as much on our own skill and innovations as many external effects.
"Interest rates, the fear of higher taxes, stock markets, world events and our industry's response to the Retail Distribution Review will all play their part.
"The impending general election will also test us. In the past it has been during such times that we have flourished and improved our market share."