LONDON (ShareCast) - (ShareCast News) - Investment management firm Hargreaves Lansdown reported a jump in full-year profit as assets under administration grew and the company announced that its chief executive Ian Gorham was stepping down.
In its preliminary results for the year to the end of June, Hargreaves said pre-tax profit pushed up 10% to a record £218.9m as asset under administration rose 12% to £61.7bn. Net revenue rose to £326.5m from £294.2m.

Hargreaves said high client satisfaction drove strong client recruitment and retention, with associated additional fees and income.

In addition, it said client equity trading volumes during the year were considerably higher, up 9% from 2015 at 3.7m, driven by speculation and volatility around the EU referendum, with a record 63,000 trades conducted on 24 June 2016. This additional trading drove higher stockbroking commission.

Meanwhile, the number of active clients increased 100,000 in the year to 836,000 and the group lifted its total dividend by 3% to 34p per share.

Chief executive Ian Gorham said: "We are delighted to present a set of results demonstrating a healthy profit growth and continued substantial new assets and clients. Hargreaves Lansdown is well positioned to take advantage of the structural opportunity for growth in the savings and investments market, including the launch of the Lifetime ISA in April next year."

The company said that while the long-term implications of the UK's decision to leave the European Union are unknown, it remains confident about the future and considers its business to be robust.

"Whilst in the short-term volatility and uncertainty may continue, as more clarity develops on the execution path for leaving the EU we hope 2016/2017 may see better markets."

Also on Wednesday, Hargreaves said CEO Gorham has decided to step down from the role no later than 30 September 2017. Chris Hill, currently the group chief financial officer, will become deputy chief executive from 1 October 2016, with the intention that he will be confirmed as CEO once Gorham has left.

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