Wealth management group Hargreaves Lansdown underlined the recession-proof nature of its core business with a 42% rise in pre-tax profits and a 60% boost to its dividends for the year ending June.
The firm, which has no debt and has grown organically since it was founded in a Bristol spare bedroom 30 years ago, raised its final dividend per share from just 0.58p to 8.41p and lifted a special dividend per share from 1.70p to 5.96p, bringing the total dividend per share from 11.88p to 18.87p.
Revenue jumped 31% from £159m to £207.9m in the 12 months to end June, driven by the recurring revenue streams of renewal income, interest and management fees, which combined for 97% of the increase.
Chief executive Ian Gorham emphasised Hargreaves Lansdown's "fee-based advice proposition presents opportunity for growth" but stressed that "direct business will remain core". He added: "These record results clearly demonstrate the strength of our business and confirmation of our strategy."
He continued: "Even though the investment market faces economic uncertainty, I believe that the company is extremely well placed to build on the momentum that has been generated. Since the year-end we have seen net new business and net new clients both significantly higher than last year's comparatives."
In addition Hargreaves Lansdown launched new iPhone and Android apps last month which have already been downloaded 11,000 times, underlining how its digital strategy is now a vital part of attracting and serving customers.
Reflecting specifically on UK economic prospects, Mr Gorham said the potential for raising interest rates had faded further into the future – "a situation which will drive investors to seek other income producing assets such as those in which Hargreaves Lansdown specialise".
