LONDON-- Hargreaves Lansdown PLC unveiled a significant rise in
new business amid a frenzied U.K. initial public offering market,
and said that it will seek to boost revenue by expanding its range
of funds and considering other growth opportunities.
"A busy year of stock market activity has been beneficial to
Hargreaves Lansdown in terms of adding new clients and new
business," the financial services company said Wednesday as it
reported its fiscal 2014 results.
"Of particular note was the Royal Mail flotation, where around
118,000 people, approximately 18.5% of the U.K. public who invested
in Royal Mail shares, did so through Hargreaves Lansdown," the
company said.
The company, which calls itself an investment supermarket, also
attributed the rise in new business to the flotation of TSB Banking
Group PLC and the high profile launch of a new fund by influential
fund manager Neil Woodford in June.
The FTSE 100 listed company said net new business in the year to
June 30 rose by 25% to GBP6.4 billion ($10.59 billion), and an
additional net new 144,000 investors became clients in the year,
helping assets under administration grow 29% to GBP46.9
billion.
Net profit for the year grew 9% to GBP162.1 million, from
GBP148.4 million a year earlier, on net revenue of GBP291.9
million, compared with GBP292.4 million in the year-earlier period.
The group reported a pretax profit of GBP209.8 million, up 7% from
GBP195.2 million last year.
Hargreaves Lansdown declared a special dividend of 9.61 pence a
share and has raised its second interim dividend payment to 15.39
pence, giving a total dividend of 32.0 pence, up 8%.
Analysts at Citigroup said that the results were broadly in line
with expectations and that Hargreaves Lansdown might look at
acquisitions to boost revenue growth. Citigroup reiterated its sell
rating and target price of GBP10 because of tough competition.
At 08:26 GMT shares in Hargreaves Lansdown traded 2% lower at
GBP11.16.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires