Hargreaves Lansdown PLC Sets Multiple Records

The share price of Hargreaves Lansdown (LSE: HL), the Bristol-based financial services company, is currently down 1.8%, despite setting records in its preliminary annual results for the year to 30 June 2014, which were released this morning.

hargreaveslansdownHargreaves Lansdown’s total assets under administration rose 29%, to £46.9bn, from a record net business inflow of £6.4bn. Operating profit went up 8%, rising to a record £208m, on net revenue that also increased 8%, to just under £292m. And the company reported a record increase in client numbers of 144,000, taking the total to 652,000.

Diluted earnings per share (EPS) increased 9%, to 34.2p, and the board is recommending a final dividend of 15.32p per share, bringing the total annual payout to 32p per share, up 8% on the previous year.

Hargreaves Lansdown has also announced a special dividend of 9.61p per share, to be paid alongside the final dividend on 26 September. The board also reiterated its commitment to “a progressive dividend policy”.

Commenting on the company’s outlook, CEO Ian Gorham said:

Our core strategic priorities remain as; the delivery of growth in assets and client numbers through the provision of excellent and efficient service, research and information at good value. 

“We shall also seek to enhance our complementary revenue generating services over the coming year.  This will include expanding our range of successful multi-manager funds, enhancing our cash strategy, and considering other growth opportunities.  At the same time, we will remain focused on our core business, delivering improvements and enhancements to our service to delight our clients, and continuing to enhance our distribution through the addition of new channels.

At 1,118p, Hargreaves Lansdown’s share price is up 7% on this time last year, just beating the FTSE 100‘s rise of 6.5%.  But over the past five years, Hargreaves Lansdown has left the index trailing in its wake, increasing its share price by 355%, compared with a gain of just over 40% by the FTSE 100.

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Jon Wallis has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.