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Hargreaves Lansdown FY10 Profit Climbs - Update

(RTTNews) - Investment broker and advise firm Hargreaves Lansdown plc. (HL.L) announced Wednesday its fiscal 2010 preliminary results, reporting higher profit on strong revenue growth. Further, the company's directors recommended a final dividend and a special dividend.

Profit before tax for the year increased 18% to GBP 86.30 million from GBP 73.08 million in the prior year.

Excluding investment gains and one-off costs relating to the new office, adjusted profit before tax grew 22% to GBP 90.7 million from GBP 74.5 million in last year.

On an after-tax basis, profit attributable to equity shareholders of the parent company increased to GBP 61.27 million from GBP 52.12 million last year. Earnings per share were 13.1 pence, up 18% from 11.1 pence last year. Adjusted earnings per share rose 23% to 13.9 pence, from 11.3 pence in the prior year.

Annual revenue rose 20% to GBP 159.0 million from GBP 132.8 million in the prior year.

The Vantage division's revenues grew to GBP 112.2 million from GBP 87.5 million a year ago, mainly on growth in assets under administration. Revenue in the Discretionary division increased 19% year-over-year to GBP 22.9 million. Adjusted operating profit margin rose to 56.5% from 53.6% last year.

Commenting on the results, Peter Hargreaves, Chief Executive, said, "Revenue, profits and earnings per share have achieved record levels and although these measures have been helped by a rise in stock markets across the year, the more significant contribution has been from record organic growth."

Looking ahead, Hargreaves said, "Even though we continue to face economic uncertainty, I believe that the company is extremely well placed to build on the momentum that has been generated so far."

Further, Hargreaves said its directors recommended a final ordinary dividend of 0.58 pence per share and a special dividend of 1.70 pence per share, payable on September 29 to shareholders on the register at the close of business on September 10. The total dividend for the year would be 11.88 pence per ordinary share, up 18% from 10.101 pence paid last year.

On the London Stock Exchange, HL.L closed Tuesday's trading at 389.10 pence, down 0.90 pence or 0.23%.