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Hargreaves Lansdown Shows Record Profits After Royal Mail Sale

Hargreaves Lansdown Plc (HL/), the retail broker founded in 1981, said fiscal full-year pretax profit rose to a record, boosted by the October initial public offering of Royal Mail Plc. (RMG)

Profit climbed 7 percent to 209.8 million pounds ($345.4 million) in the 12 months through June from 195.2 million pounds a year previously, the Bristol, England-based company said in a statement today. The total dividend increased 8 percent to 32 pence a share.

“A busy year of stock market activity has been beneficial to Hargreaves Lansdown in terms of adding new clients and new business,” Chief Executive Officer Ian Gorham said in the statement. “Of particular note was the Royal Mail flotation.” Almost 20 percent of the U.K. public who bought Royal Mail shares did so through Hargreaves Lansdown, he said.

Operating profit increased 8 percent to 208 million pounds. Net revenue grew 8 percent to 291.9 million pounds, while assets under administration rose 29 percent to 46.9 billion pounds.

Royal Mail was seven times oversubscribed by retail investors in the U.K.’s biggest state asset sale since British Rail was broken up in the 1990s.

Hargreaves Lansdown added 144,000 clients in the year, a gain of 89 percent compared with the 2013 fiscal year. Net new business rose 25 percent to 6.4 billion pounds.

“The coming year will be a challenging one with competition intensifying in all areas of our business but we remain well placed to continue to satisfy our clients and thrive in our chosen markets,” Chairman Michael Evans said in the statement.

The company said it implemented the remaining requirements of the Retail Distribution Review, a set of rules designed to increase transparency in the investment industry that was introduced in April.

To contact the reporter on this story: Tom Beardsworth in London at tbeardsworth@bloomberg.net

To contact the editors responsible for this story: Simone Meier at smeier@bloomberg.net Mark Bentley, Jon Menon

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