Hargreaves Lansdown raises divi by 60%

1st Sep 2011 07:03

Assets under administration at Hargreaves Lansdown climbed 41% in the year ended 30 June, as the wealth management firm hiked its dividend by nearly 60%.The firm, which in 2011 celebrated its 30th year since formation, reported assets under administration of £24.6bn, up from £17.5bn the year before.The board has decided to raise its final dividend per share from just 0.58p to 8.41p and upped a special dividend per share to 5.96p (from 1.70p), bringing the total dividend to 18.87p per share, up from 11.88p the year before.Revenue jumped by 31% to £207.9m, compared with £159m in the 12 months ended 30 June 2010, driven by the recurring revenue streams of renewal income, interest and management fees, which combined for 97% of the increase.During the year, the firm registered 50,000 new active clients for its Vantage platform, taking the total number to 380,000.Pre-tax profit rose 46% from £86.3m to a record £126m, helped by an improved operating profit margin, which increased by 6.1 percentage points to 59.8%, from 53.7% previously. Diluted earnings per share totaled 19.6p, 50% higher than the 13.1p seen the year before."Even though the investment market faces economic uncertainty, I believe that the company is extremely well placed to build on the momentum that has been generated. Since the year-end we have seen net new business and net new clients both significantly higher than last year's comparatives," said chief executive Ian Gorham.Gorham said that the potential for raising interest rates has faded further into the future - "a situation which will drive investors to seek other income producing assets such as those in which Hargreaves Lansdown specialise."BC