Hargreaves Lansdown profits rise as asset growth slows
LONDON (Reuters) - British investment manager Hargreaves Lansdown (HRGV.L) outpaced the impact on investors' confidence of weak stock markets and bad economic news to post double digit increases in revenues and profits during its fiscal year.
In an earnings statement on Wednesday for the full year to the end of June, the company said revenue increased 15 percent to 238.7 million pounds while pre-tax profits were up 21 percent at 152.8 million pounds.
The numbers beat analyst estimates which averaged 149 million pounds for profits and 234 million pounds for revenues according to Thomson Reuters data.
In spite of ongoing growth, however, weak stock markets through the reporting period caused the rate of new business to slow.
Assets under administration grew 7 percent over the period to 26.3 billion pounds but net business inflows of 3.2 billion pounds were 9 percent lower than the previous year.
"This year, the succour of a stock market rise disappeared... All in all it is not surprising that the general retail investment market fared badly," the company said.
The company sharply increased its dividend, up 20 percent for the full year to 22.59 pence per share.
It also announced co founder and second largest shareholder Stephen Lansdown, who owns a fifth of the company and has served as a non executive director for two years, will be stepping down from the board.
Hargreaves Lansdown shares closed on Tuesday at 630.5 pence.
(Reporting by Chris Vellacott)
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