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Hargreaves profits near £200m after 28% jump

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Hargreaves Lansdown has said it expects to introduce its new pricing model for funds in "early 2014" as it reported pre-tax profits of £195.2m, a jump of 28%.
Hargreaves profits near £200m after 28% jump

Its full-year results for the year to 30 June 2013 also saw assets under administration (AUA) rise 38% to £36.4bn and revenue was up 22% to £292.4m.

It said AUA was driven by a 59% rise in net new business, which jumped to a record £5.1bn. Total client numbers, meanwhile, rose by 76,000 to 507,000 over the period, a 69% rise in net new clients.

The group hiked its total dividend by some 31% to 29.59p per share.

Elsewhere, Hargreaves said remains confident it can introduce an unbundled pricing structure “smoothly and efficiently”.

Chief executive Ian Gorham (pictured) said: “Our investment in negotiating lower charges for clients and our own investment in systems to facilitate low charges will result in the majority of clients paying less for their investing services in future.  We expect to introduce our new pricing model for funds in early 2014.”

A spokesman for the group told Your Money’s sister title Investment Week that the unveiling of the new model remains “on track”, with the group now intending to make an announcement in November or December this year.

Broker Numis said the early signs are that the Retail Distribution Review (RDR)-era has been “broadly supportive” for Hargreaves.

“RDR I has been broadly supportive with transfers from advisory platforms up 85% last year against overall net transfers being up 59%.

“We continue to believe the group’s brand and customer service offering warrant a premium relative to the competition and that Hargreaves Lansdown is best placed to capitalise on the structural growth we expect in the industry.”

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