Why Hargreaves Lansdown Is Up 50% This Year
LONDON -- Hargreaves Lansdown (ISE: HL.L) has advanced 50% to 639 pence so far during 2012, making the share one of this year's best performers in the FTSE 100 (UKX).
Hargreaves, which claims to be the U.K.'s largest direct-to-investor "investment supermarket," seems to have impressed investors with a series of very positive statements.
During February, Hargreaves announced half-year results that showed revenue up 16% to 113 million pounds, profits up 21% to 72 million pounds and an interim dividend up 13% to 5.1 pence per share. The performance was in part supported by an extra 16,000 customers and stockbroking volumes advancing 12%.
During April, Hargreaves' first-quarter statement revealed year-to-date operating revenues up 16% to 175 million pounds and total client assets under administration up 2.6 billion pounds to 26 billion pounds. The company also said a further 17,500 new customers had joined its service.
Then in September, Hargreaves disclosed 12-month results that showed profits up 21% to 153 million pounds and a total dividend up 20% to 22.59 pence per share. The firm also mentioned the proportion of its revenue that it deemed to be recurring had improved from 78% to 81%.
Ian Gorham, chief executive of Hargreaves, said at the time:
"Hargreaves Lansdown has again delivered excellent business growth, with record revenues (15%) and profits ( 21%). New, innovative services have furthered growth in assets under administration and client numbers to record levels of [26.3 billion pounds] and 425,000 respectively. Net business inflows were [3.2 billion pounds] despite a difficult economic backdrop. Such strong results are made possible by our continued reputation for unparalleled client satisfaction and highly effective delivery of our strategy to be the best place to buy investments in the UK. We thank our staff for their continued valuable contribution and our clients for their continued loyalty."
Hargreaves Lansdown's next trading update will be published on October 12th, which may reveal further very positive news that can impress investors.
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Nicky does not own any share mentioned in this article.
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