The business of Hargreaves Lansdown
Key Financial Data
For management and reporting purposes, Hargreaves Lansdown's operations are divided into the following five business units: Vantage, Third Party, Discretionary, Advisory and Stockbroking. These are described further in the Business Units section.
In the financial year ended 30 June 2008, the contribution of each of the business units to Group revenue was as follows:
| 30 June 2008 £m |
% of Group % |
|
|---|---|---|
| Total | 120.3 | 100.0 |
| Vantage | 72.2 | 60.0 |
| Third Party | 16.3 | 13.6 |
| Discretionary | 10.3 | 8.6 |
| Advisory | 14.8 | 12.3 |
| Stockbroking | 4.9 | 4.1 |
| Central services | 1.7 | 1.4 |
Summary assets under administration or management
The following table shows the change in the Group's assets under administration or management from 30 June 2004 to 30 June 2008.
| 30 Jun 2004 | 30 Jun 2005 | 30 Jun 2006 | 30 Jun 2007 | 30 Jun 2008 | |
|---|---|---|---|---|---|
| Assets under administration or management (£m) | 2,915 | 4,086 | 6,082 | 10,159 | 11,112 |
Current trading and prospects
Comments from Peter Hargreaves, Chief Executive (27.8.2008):
"We are pleased to present our results for the year ended 30 June 2008, which show a 22% increase in revenue and 42% increase in underlying profit. We have increased our percentage of recurring revenues and improved our profit margin from 41% to 48%, illustrating the scalability of the Hargreaves Lansdown business model.
We have demonstrated our resilience this year, by maintaining our inflows and increasing our assets under administration, despite a 16% decline in the FTSE ALL Share index. Our exceptional service, informative website, publications and accessible helpdesk have encouraged both new and existing clients to entrust us with their assets, whilst our continued entrepreneurial approach has enabled us to reach people in new ways and talk to them about their investments.
Over the coming months we shall focus on exploiting opportunities which still exist such as the transfer market, growth in demand for advice and discretionary services and protected rights pension monies, which will become eligible for our SIPP in October. We will also continue to suggest more appropriate investments for the billions we believe are poorly invested elsewhere.
We expect market conditions to remain challenging but our aim will be to emerge with an increased presence in the market."