Secondary Recommendation

Hargreaves Lansdown - Spectacular debut for investment management products firm

June 2007

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Shares in Hargreaves Lansdown, a leading provider of investment management products, soared to an impressive 31% first day premium after being introduced to the full list at 160p a share by broker Citigroup. The placing raised £190m from existing shareholders (25% of the share capital) and with no new money needed, it was heavily oversubscribed. This in part reflects the company’s excellent track record, in which turnover has more than doubled from £16.4m in 2004 to £35.2m last year, powering net profit from £7.7m to £19.8m. But it also reflects the expectation that the Hargreaves’ story has extremely long legs; it has a highly scalable business model, while it is still relatively small compared ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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