The share price of Hargreaves Lansdown (LSE: HL), the Bristol-based financial services company, is currently down 1.8%, despite setting records in itspreliminary annual results for the year to 30 June 2014, which were released this morning.
Hargreaves Lansdowns total assets under administration rose 29%, to 46.9bn, froma record net businessinflow of 6.4bn. Operating profit went up 8%, rising to a record 208m, onnet revenue that also increased 8%, to just under292m. And the company reporteda 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 dividendon 26 September. The board also reiterated its commitment to aprogressive dividend policy.
Commenting on the companysoutlook, CEOIan Gorhamsaid:
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 Lansdowns share price is up 7% on this time last year, just beating the FTSE 100s rise of 6.5%. But over the past five years,Hargreaves Lansdown has left theindex 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.