Hargreaves Lansdown revenue and profit up, just short of expectations

In its interim report for the six months to 31 December, the financial services provider reported revenue had increased from £144.1m to £158.8m.

That was boosted by a 23% increase in net new business inflows of £2.77bn, up from £2.25bn, as well as a 47,000 increase to its active client numbers of 783,000.

Total assets under administration rose 7% to £58.8bn in the six months.

The FTSE 100 company said profit before tax rose 6% to £108.1m, and declared an interim dividend of 7.8p per share.

It also flagged the outlook for the second half of the year is generally stronger for new business, especially as it includes the end of the tax year, which acts as an incentive for clients to use tax allowances.

But the company did warn that levels of new business will be partly dependent on investor sentiment and levels of stock markets.

"Against a backdrop of fluctuating stock markets, Hargreaves Lansdown has continued to be the most popular destination for UK retail investors, with excellent new business for the period.,” said chief executive Ian Gorham.

“In particular the pension freedoms continue to attract huge interest as we prepare for the important tax year-end period."

However the company's results fell just short of expectations, with revenue expected to be £161.2m and profit expected to be at £110.9m.