The Royal Mail flotation and an improved market for equities helped Bristol-based fund manager Hargreaves Lansdown post a strong rise in full-year new business and reward its shareholders with a larger dividend pay-out.
The firm, which has continued to grow steadily in recent years despite tough trading conditions, today said its total assets under administration climbed by 29% to £46.9bn in the year to June 30. 
That helped push up pre-tax profits by 7% to £195.2m with net revenues increasing by 8% to £292m. The firm’s total number of clients also rose – by 144,000 to 652,000 – as it booked a 25% increase in net new business worth £6.4bn.
Hargreaves Lansdown, which calls itself the UK’s largest direct to investor ‘investment supermarket’, handled just under a fifth of all applications for Royal Mail shares.
However, the firm’s margin on net revenue eased from 71.5% to 71.3% compared to the previous year.
In its full-year statement to the London Stock Exchange, the firm said: “A busy year of stock market activity has been beneficial to Hargreaves Lansdown in terms of adding new clients and new business.
“Of particular note was the Royal Mail flotation, where around 118,000 people, approximately 18.5% of the UK public who invested in Royal Mail shares, did so through Hargreaves Lansdown.”
The firm increased its total dividend by 8% to 32p per share – meaning another big payday for multi-millionaire founders Peter Hargreaves and Stephen Lansdown, both of whom retain large holdings in the firm.
Chief executive Ian Gorham said: “During the year we have continued to expand and improve the services we provide to our clients whilst also dealing with major regulatory change.
“Hargreaves Lansdown has not only retained but furthered its market leading position. Our clients have entrusted a further £6.4bn to us such that we now administer £46.9bn of assets.
“We have also welcomed 144,000 new clients during the year, with clients now totalling 652,000. This has led to an 8% increase in net revenues and 7% growth in profits. We thank our diligent staff for their efforts and our clients for their continued loyalty.”
