LONDON (Reuters) - Profits at fund supermarket Hargreaves Lansdown (HRGV.L) rose 21 percent during its financial year though its total dividend fell 15 percent from a year ago as it had to withhold cash to adjust to tougher capital requirements.
The company said earlier this month that it was cancelling its special dividend after Britain’s financial regulator, the Financial Conduct Authority, ordered it to increase its capital buffers due to the increasing complexity of its business and strong growth.
Hargreaves Lansdown made 265.8 million pounds ($344.56 million) in pre-tax profit for the year ended June 30, confirming the company’s earlier guidance.
The company will pay a total dividend of 29 pence per share, compared to 34 pence per share in 2016.
“The board remains committed to paying special dividends in future years when sufficient excess cash and capital exist,” it said in its results statement.
It also added 6.9 billion pounds in net new business in the financial year, with its assets under management rising to 79.2 billion pounds.
Reporting by Maiya Keidan; Editing by Rachel Armstrong