* Hargreaves Lansdown sees 46% rise in full year profit
* Dividend hike increases attractions for income seeking investors
* The Share Centre continues to recommend investors ‘hold' Hargreaves Lansdown for now
As wealth management firm, Hargreaves Lansdown, reports positive figures for the year ending 30 June Graham Spooner, investment adviser at The Share Centre, explains what this means for investors.
"Hargreaves Lansdown announced profits for the year increased by 46% with total assets under administration of £24.6bn, a 41% increase from the year before. The company's revenues also saw a substantial rise to £207.9m, up by 31%. Investors will be encouraged by these figures and the company is starting to solidify its position in the FTSE 100.
"Growth seeking investors will be pleased to see a significant rise in new business and new client levels. Since the 30 June these levels have continued to rise despite the volatility of the investment market and economic uncertainty for the consumer. The total number of active clients now stands at 380,000.
"The company has also sharply increased its final dividend from just 0.58p per share to 8.41p. The total dividend has risen from 11.88p per share last year to 18.87p. This boost of almost 60% will start to attract income seeking investors.
"Following the good performance in 2011 and the increase in dividend, the company now has attractions for both income and growth seeking investors. We continue to recommend investors ‘hold' Hargreaves Lansdown for now as uncertainty remains over future regulatory issues."
|
