UK-listed wealth management and advisor firm Hargreaves Lansdown has reported an increase in net revenue increase of 8 per cent to £291.9 million ($480.8 million) for the year ending 30 June, despite a year of “significant regulatory change”.

UK-listed wealth management and advisor firm [atg|hargreaves lansdown">Hargreaves Lansdown has reported an increase in net revenue increase of 8 per cent to £291.9 million ($480.8 million) for the year ending 30 June, despite a year of “significant regulatory change”.

In its annual statement the firm said that total assets under administration increased 29 per cent from £36.4 billion a year ago to £46.9 billion, while profit increased by 8 per cent to £208 million.

Net new business for the year was £6.4 billion, compared to £5.1 billion a year ago, with market movement and other factors adding a further £4.1 billion. The dividend for the year increased by 8 per cent to 32 pence a share.

An additional 144,000 clients were added during the year, up from 76,000 a year ago, with the total number of clients now standing at 652,000.

The group said net new business inflows were £6.4 billion, with the positive impact of the rise in investment markets and other growth factors increasing client assets by a further £4.1 billion.  

On the firm’s Vantage platform, net revenue increased by 8 per cent, but was held back by the reduction in interest revenue resulting from lower interest margins from £204.3 million to £221.0 million. Total Vantage assets under administration were £42 billion, up 29 per cent up from 34.2 billion a year ago.

Net new active clients on its Vantage platform rose by 143,000 to 643,000, including a total of 16,000 new Corporate Vantage scheme members.

Following the Retail Distribution Review's ban on trail commission at the beginning of April, platform providers had to adopt a new pricing model for new business which does not include commissions, fees, or rebates. This has led to a price war between rival platform providers that has seen firms such as Hargreaves, Fidelity and Barclays Stockbrokers all trying to undercut one another on charges.

Chief executive Ian Gorham said that the RDR had been a “massive undertaking” but after a period of familiarisation, “clients seem to have accepted the changes”.

“During the year, the company had to cope with major regulatory change, the most significant of which being the FCA's Retail Distribution Review. We are pleased we have been able to deliver this change successfully and delivered lower costs of investing for the majority of our clients at the same time. We now look forward to seeking to maintain our success in our growing marketplace,” said Gorham.

Gorham said that following the regulatory change, client and asset retention ratios had remained high at 93.3 per cent and 92.3 per cent respectively.