REG - Hargreaves Lansdown - Half Yearly Report <Origin Href="QuoteRef">HRGV.L</Origin> - Part 3
03/02/2016 07:10
- Part 3: For the preceding part double click ID:nRSC8640Nb
to waive all dividends.
Unaudited6 months ended 31 December2015 Unaudited 6 months ended 31 December2014 Audited Year to 30 June 2015
Number of shares held by the Hargreaves Lansdown Employee Benefit Trust (HL EBT) 1,098,096 3,448,348 2,726,361
Representing % of called-up share capital 0.23% 0.73% 0.57%
12. Earnings per share (EPS)
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary
shares in free issue during the period, including ordinary shares held in the
EBT reserve which have vested unconditionally with employees.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares.
Unaudited6 months ended 31 December2015 Unaudited 6 months ended 31 December2014 Audited Year to 30 June 2015
Earnings (all from continuing operations) £'000 £'000 £'000
Earnings for the purposes of basic and diluted EPS being net profit attributable to equity holders of the parent Company 86,711 79,782 156,664
Number of shares Number Number Number
Weighted average number of ordinary shares for the purposes of diluted EPSWeighted average number of shares held by HL EBT which have not vested unconditionally with employees
474,605,164 473,554,769 473,716,102
(1,581,090) (2,173,676) (2,068,619)
Weighted average number of ordinary shares for the purposes of basic EPS 473,024,074 471,381,093 471,647,483
Earnings per share Pence Pence Pence
Basic EPS 18.3 16.9 33.2
Diluted EPS 18.3 16.8 33.1
13. Investments
Unaudited6 months ended 31 December2015 £'000 Unaudited 6 months ended 31 December2014 £'000 Audited Year to 30 June 2015 £'000
At beginning of period 909 874 874
Sales (182) (292) -
Purchases - - 35
At end of period 727 582 909
Comprising:
Current asset investment - UK listed securities valued at quoted market price 463 318 645
Current asset investment - Unlisted securities valued at cost 264 264 264
£463,000 (31 December 2014: £318,000, 30 June 2015: £645,000) of investments
are classified as held at fair value through profit and loss and £264,000 (31
December 2014: £264,000, 30 June 2015: £264,000) are classified as
available-for-sale. Available-for-sale investments have been included at fair
value where a fair value can be reliably calculated, with any revaluation
gains and losses reflected in an investment revaluation reserve until sale
when the cumulative gain or loss is transferred to the income statement. If a
fair value cannot be reliably calculated by reference to a quoted market price
or other method of valuation, available-for-sale investments are included at
cost, with a fair value adjustment recognised upon disposal of the
investment.
14. Trade and other receivables
Unaudited6 months ended 31 December2015 £'000 Unaudited 6 months ended 31 December2014 £'000 Audited Year to 30 June 2015 £'000
Financial assets:
Trade receivables 271,035 227,366 380,803
Other receivables 899 1,352 1,460
271,934 228,718 382,263
Non-financial assets:
Prepayments and accrued income 36,299 31,589 29,442
308,233 260,307 411,705
Trade and other receivables are measured at initial recognition at fair value.
Appropriate allowances for estimated irrecoverable amounts are recognised in
profit or loss when there is objective evidence that the asset is impaired.
In accordance with market practice and IFRS, certain balances with clients,
Stock Exchange member firms and other counterparties totalling £252.5 million
(31 December 2014: £197.5m, 30 June 2015: £363.2m) are included in trade
receivables.
15. Cash and cash equivalents
Unaudited6 months ended 31 December2015 £'000 Unaudited 6 months ended 31 December2014 £'000 Audited Year to 30 June 2015 £'000
Restricted cash - balances held by Hargreaves Lansdown EBT 15,985 4,900 7,602
Group cash and cash equivalent balances 165,731 149,015 209,151
181,716 153,915 216,753
Cash and cash equivalents comprise cash on hand and demand deposits held by
the Group that are readily convertible to a known amount of cash. The carrying
amount of these assets is approximately equal to their fair value.
15. Cash and cash equivalents (continued)
Segregated deposit amounts held by the Group on behalf of clients, in
accordance with the client money rules of the Financial Conduct Authority
amounted to £5,125 million (31 December 2014: £4,195m, 30 June 2015: £5,499m).
The client retains the beneficial interest in these deposits and accordingly
they are not included in the balance sheet of the Group.
16. Trade and other payables
Unaudited6 months ended 31 December2015 £'000 Unaudited 6 months ended 31 December2014 £'000 Audited Year to 30 June 2015 £'000
Financial liabilities:
Trade payables 251,414 195,531 362,808
Social security and other taxes 5,290 6,061 9,692
Other payables 19,191 16,373 12,176
275,895 217,965 384,676
Non-financial liabilities:
Accruals and deferred income 6,981 8,520 12,586
282,876 226,485 397,262
In accordance with market practice and IFRS, certain balances with clients,
Stock Exchange member firms and other counterparties totalling £250.0 million
(31 December 2014: £195.6m, 30 June 2015: £361.9m) are included in trade
payables. Other payables principally comprise amounts owed to clients as a
loyalty bonus and to staff as a bonus. Accruals and deferred income
principally comprise amounts outstanding for trade purchases and revenue
received but not yet earned on group pension schemes where an ongoing service
is still being provided.
17. Share capital Unaudited6 months ended 31 December2015 £'000 Unaudited 6 months ended 31 December2014 £'000 Audited Year to 30 June 2015 £'000
Issued and fully paid:
Ordinary shares of 0.4p 1,897 1,897 1,897
Shares Shares Shares
Issued and fully paid:
Number of ordinary shares of 0.4p 474,318,625 474,318,625 474,318,625
The Company has one class of ordinary shares which carry no right to fixed
income.
18. Notes to the consolidated cash flow statement Unaudited6 months ended 31 December2015 £'000 Unaudited 6 months ended 31 December2014 £'000 Audited Year to 30 June 2015 £'000
Profit for the period after tax 86,896 80,137 157,249
Adjustments for:
Investment revenues (269) (520) (987)
Income tax expense 21,214 21,735 41,789
Depreciation of plant and equipment 1,726 1,652 3,279
Amortisation of intangible assets 769 415 1,101
(Profit)/loss on disposal - - -
Share-based payment expense 1,124 1,011 2,109
Increase/(decrease) in provisions - 65 (47)
Operating cash flows before movements in working capital 111,460 104,495 204,493
Decrease/(increase) in receivables 103,472 43,556 (107,842)
(Decrease)/increase in payables (114,386) (54,437) 116,340
Cash generated from operations 100,546 93,614 212,991
19. Related party transactions
The Group has a related party relationship with its directors and members of
the Executive Committee (the "key management personnel"). There were no
material changes to the related party transactions during the financial
period; transactions are consistent in nature with the disclosure in Note 27
to the 2015 Annual Report.
20. Financial instruments' fair value disclosure
The fair values of the Group's financial assets and liabilities are not
materially different from their carrying values. Market values have been used
to determine the fair value of cash and cash equivalents, and
available-for-sale financial assets where there is a quoted market price.
Investments in equity instruments which do not have a quoted market price in
an active market or whose fair value cannot be reliably measured are measured
at cost. There have been no transfers of assets or liabilities between levels
of the fair value hierarchy and there are no non-recurring fair value
measurements.
The following table provides an analysis of financial instruments that are
measured subsequent to initial recognition at fair value, grouped into Levels
1 to 3 based on the degree to which fair value is observable:
Unaudited at 31 December 2015 Unaudited at 31 December 2014 Audited at 30 June 2015
£'000 £'000 £'000
Recurring fair value measurements:
Financial assets at fair value through profit or loss
Level 1 Quoted prices for similar instruments 463 318 645
Level 2 Directly observable market inputs other than Level 1 inputs - - -
Level 3 Inputs not based on observable market data - - -
463 318 645
Directors, Company Secretary, Advisers and Shareholder Information
EXECUTIVE DIRECTORS
Ian Gorham
Chris Hill
NON-EXECUTIVE DIRECTORS
Chris Barling
Michael Evans
Shirley Garrood
Jayne Styles
Stephen Robertson
COMPANY Secretary
Judy Matthews
INDEPENDENT AUDITOR
PricewaterhouseCoopers LLP, London
SOLICITORS
Osborne Clarke LLP, Bristol
PRINCIPAL BANKERS
Lloyds Bank plc, Bristol
BROKERS
Barclays
Numis Securities Limited
REGISTRARS
Equiniti Limited
Registered Office
One College Square South
Anchor Road
Bristol
BS1 5HL
Registered number
02122142
WEBSITE
www.hl.co.uk
DIVIDEND CALENDAR 2015/16
First dividend (interim)
Ex-dividend date* 3rd March 2016
Record date** 4th March 2016
Payment date 31st March 2016
* Shares bought on or after the ex-dividend date will not qualify for the
dividend.
** Shareholders must be on the Hargreaves Lansdown plc share register on this
date to receive the dividend.
This information is provided by RNS
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