Hargreaves Lansdown has released its first annual results to the London Stock Exchange since the company floated in May this year, with an increase in operating profits of over two thirds.
Overall, underlying profits increase by 67% to £40.7m before tax deductions while revenue increased by 34% to £98.8m for the year to June 30, 2007. Earnings per share increased 52% to 6.4p.
The company now has £10.2bn worth of assets under management, an increase of 67% on the £6.1bn held last year.
Peter Hargreaves, chief executive of Hargreaves Lansdown, comments: “I am mindful that since our year end we have seen huge turmoil in the world’s stock markets.
The market is still uncertain of the extent of the problems caused by the United States’ sub-prime lending market.
“Although Hargreaves Lansdown has no direct exposure to this area, sentiment is likely to cause an overreaction in markets and it is impossible to know when the bottom will occur.”
Hargreaves says part of the reason for Hargreaves Lansdown’s exceptional performance is that a large proportion of the business including SIPPs, corporate pensions and annuities is not significantly affected by movements in the markets.
He says the business will continue to grow over the coming year and the firm hopes the markets will begin to calm, which will in turn repair investor confidence.
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