Hargreaves Lansdown plc
Report and Financial Statements
for the year ended 30 June 2009
Registered number: 02122142 1
Contents
Page
Business overview
Highlights 2
Our business and objectives 3
Chairman’s statement 5
Chief Executive’s statement 7
Operating and financial review
Strategy, objectives and markets 8
Performance 9
Financial review 11
Operations 13
Risks and uncertainties 14
Corporate social responsibility 17
Outlook 17
Corporate Governance
Management team 18
Directors’ report 19
Corporate governance statement 22
Audit Committee report 26
Directors’ remuneration report 28
Statement of directors’ responsibilities 33
Financial Statements
Independent auditors’ report 34
Consolidated income statement 35
Consolidated statement of recognised income
and expense 36
Consolidated and Company balance sheets 37
Statement of cash ﬂows 38
Notes to the ﬁnancial statements 39
Directors, company details, advisors 67
Five-year summary 68
Our aim
We aim to help investors make more of their investments 
by providing the best information, the best service and
the best prices in a manner which creates most value for
our shareholders.
About us
Hargreaves Lansdown distributes investment products and
attracts high quality earnings derived from the value of
investments under administration or management.  
Our success can be attributed to innovative marketing, 
a high retention of clients through the provision of 
first class service and information.  The company 
employs a unique direct selling model which is cost
eﬀective, scalable and aﬀords a high proﬁt margin.
At a glance
� Revenue increased by 10% to £132.8m (2008: £120.3m)
� Proﬁt before tax increased by 20% to £73.1m (2008:
£60.9m)
� Underlying diluted earnings per share* increased by
22% to 11.0 pence (2008: 9.0p)
� Assets under administration increased by 7% to
£11.9bn (2008: £11.1bn) despite a 24% decline in the
FTSE All-Share index
� Total dividend payout for the year increased by 29% to
10.101 pence (2008: 7.809p) per share **
(*) Underlying EPS based upon underlying earnings before investment gains, and
the weighted average fully diluted share capital 
(**) Comprising 3.065 pence interim dividend, 4.229 pence proposed ﬁnal
dividend and 2.807 pence proposed special dividend  
Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009
Highlights
2009 2008 Movement 
Revenue £132.8m £120.3m +10%
Proportion of recurring revenue 70% 72% -2pts
Operating profit margin 52.5% 48.0% +4.5pts
Profit before tax £73.1m £60.9m +20%
Total assets under administration  £11.9bn £11.1bn +7%
Underlying diluted earnings per share (*) 11.0p 9.0p +22%
(*) Based upon earnings before any investment gains, and the weighted average fully diluted share capital 
10% increase in revenue:
Revenue increased by 10% to £132.8 million.  The growth is attributed to an increase in revenue
of £12.7 million in the Vantage division resulting from improved revenue margins, increased
assets under administration and a full year’s revenue on assets secured in the previous year.  
The proportion of recurring revenue i.e. management fees, renewal commission and interest,
remained high at 70% (2008: 72%). 
Operating profit margin of 52.5%:
Costs have been well controlled during the year.  The Group’s operating margin has increased to
52.5%.  The increase resulted from 10% revenue growth coupled with an increase to operating
costs of just 1%.
£11.9 billion total assets under administration:
The 7% growth in asset values is attributable to strong new business volumes which more 
than oﬀset the signiﬁcant market decline. There was a 24% fall in the FTSE All-Share index 
during the year.
22% increase in underlying diluted EPS:
from 9.0 pence to 11.0 pence
29% increase to total dividend payout:
from 7.809 pence to 10.101 pence
2
We have had another strong year of ﬁnancial performance.  Revenue was £132.8 million and proﬁt before tax
increased by 20% to £73.1 million. Underlying diluted earnings per share and dividends per share were higher
by 22% and 29% respectively.
Revenue (£million)
2005
2006
2007
2008
2009
50.4
73.5
98.8
120.3
132.8
Operating profit margin (%)
2005
2006
2007
2008
2009
26.0
33.0
41.2
48.0
52.5
Total assets under administration (£billion)
2005
2006
2007
2008
2009
4.1
6.1
10.2
11.1
11.9
Underlying EPS (pence)
2005
2006
2007
2008
2009
2.2
4.2
6.4
9.0
11.0 Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009
Our Business
Hargreaves Lansdown oﬀers a range of investment products, investment services, ﬁnancial planning and
advice.  We have established a reputation for providing high quality service and value-for-money products to
private investors, whether they are making their own investment decisions or looking for an advisory or
discretionary service. 
Revenue contribution
We have five main operating divisions:
Vantage  
Advisory
Third Party 
Discretionary
Stockbroking 
in addition to our Central Support Services division .
Recent awards
2
3
4
Assets under administration at 30 June 2009
£11.9bn 
(2008: £11.1bn)
Revenue for the year to 30 June 2009
£132.8m 
(2008: £120.3m)
Profit before tax for the year to 30 June 2009
£73.1m 
(2008: £60.9m)
Employees (excluding directors) at 30 June 2009
589
(2008: 639)
Offices - Bristol, also satellite oﬃce in London, and ﬁnancial advisors throughout the UK.  
Website - www.H-L.co.uk
3
The Group's flagship service, Vantage, is a direct-to-private investor fund supermarket and wrap platform.  Vantage offers clients the
administrative convenience of being able to hold and manage their investments, including unit trusts, OEICs, equities, bonds, investment
trusts and cash, irrespective of the tax vehicle, in one place with consolidated valuation reports, a single dealing service and instant online
access.
The Group also provides investment management, independent financial advisory and stockbroking services to private investors and advisory
services to companies in respect of group pension schemes.
1 56
1
Vantage - 64% 
2
Advisory - 10%
3
Third Party - 13%
4
Discretionary - 8%
5
Stockbroking - 3%
6
Central Services - 2%
2008/2009
• Best Investment Advisor - Money Marketing Awards
• Lifetime Achievement Award - Peter Hargreaves - New Breed Advisor Awards
• Best use of Platform Technology - New Breed Advisor Awards
• Best Online IFA - Online Finance Awards
• Best IFA - Personal Finance Awards
• Best SIPP Provider - What Investment
2007/2008
• Most Effective Employer and Advisor Partnership Award - Employee Beneﬁts
• Best Investment Manager - FT and Investors Chronicle Wealth Management Awards 
• IFA Personality of the Year - Investment Week Fund Manager of the Year Awards 2008 - Mark Dampier Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009
Objectives
� We strive to make Hargreaves Lansdown
the best and most profitable in all the
areas in which it operates.  
� We aim to attract and retain clients by
identifying and satisfying their
investment requirements fairly and
profitably.  Whether they are making
their own investment decisions, or
looking for advisory or discretionary
services, we aim to offer a broad range of
investment solutions.
� We strive to provide shareholders with a
growing stream of dividend income,
delivered by steady and consistent
growth in earnings per share as market
conditions permit.
� We aim to provide our staff with
satisfying careers and an opportunity to
contribute to and participate in the
success of the business.
Strategy
To fulfil our objectives, we need to
command and retain the trust of our clients
by consistently delivering on the
commitments we make.  We must maintain
our client focus, putting the best long term
interests of the client first, regardless of
short term pressures, fashions or market
conditions.  By creating value for our clients,
we believe we will create long term value for
shareholders and provide fulfilling careers
for our staff.
In particular, we shall focus on the
following:
� Continued direct, quality service to
generate growth in Vantage, our direct
to investor fund supermarket and wrap
platform;
� Delivering strong performance to
increase assets under management in the
Hargreaves Lansdown range of multi-
manager funds and our Portfolio
Management Service;
Strategy
� Continuing to provide a premium
personal financial advisory service, using
our direct mail expertise to streamline
the advisory process;
� Continuing to provide a high quality
Stockbroking service;
� Continuing to improve earnings quality
within the business;
� Heightening the visibility of the
Hargreaves Lansdown brand;
� Continuing in our commitment to
provide high quality service to clients
through all the channels available, and in
particular helping more clients to benefit
from online usage;
� Increasing operational efficiency and
maintaining rigorous cost control;
� Managing risk effectively; and
� Providing independent, clear
information, or advice if preferred, so
that people can identify their financial
priorities and choose appropriate
products and solutions.
Our Objectives
Hargreaves Lansdown is in business to help investors make more of their money by providing a combination of
the best information, the best service and the best prices in its areas of operation, thereby creating value for
clients, staﬀ and shareholders.
4 Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009
Profit before tax increased by 20% from
£60.9 million to £73.1 million, and
turnover increased by 10% from £120.3
million to £132.8 million.  Our percentage
of revenue which is recurring in nature (i.e.
renewal commission, management fees and
interest) fell slightly to 70% compared to
72% for the previous year due in part to the
record volume of stockbroking deals
handled during the second half of the
financial year which increased the level of
transactional (non-recurring) income.  
Operating costs were well controlled
allowing our operating profit margin to
increase from 48.0% to 52.5%.  Underlying
diluted earnings per share have risen by 22%
to 11.0 pence compared to 9.0 pence for
2008.
During the year our assets under
administration increased from £11.1 billion
to £11.9 billion.  This includes £1.4 billion
of assets under our own management. 
Total assets under administration increased
by 7% in comparison to a decline in the
FTSE All-Share index of 24%.
Dividend
The performance of the Group has allowed
us to propose a final ordinary dividend of
4.229 pence per share increasing the total
ordinary dividends up to 7.294 pence per
share for the year.  This total dividend
payout equates to 65% of post tax profits.  
As in previous periods we have reviewed our
cash requirements going forward and are
pleased to propose a special dividend of
2.807 pence per share.  This equates to a
further 25% of post tax profits taking the
total dividend payout for the year to 10.101
pence per share.  We remind shareholders
that any special dividend in future years will
depend upon our future cash requirements
and therefore will vary.
Staff
The culture of Hargreaves Lansdown is to
provide our clients with the best
information, the best service and the best
prices.  This has borne fruit and we continue
to attract new clients and retain existing
clients.  Everything we do would not be
possible without the hard work of all our
staff and I should like to pay special tribute
to them.  Without their efforts we would be
unable to produce such a performance.
Board Changes
Since flotation, to comply with the
Combined Code of Corporate Governance I
have worked towards separating my
Chairman’s duties with my Executive
responsibilities and therefore will be
stepping down as Executive Chairman of the
Group at the Annual General Meeting
(AGM), with effect from 1 December 2009.
I shall however remain on the Board as an
Executive Director.  
Mike Evans, who has served enthusiastically
as a Non-Executive Director for the Group
for the last three years, has agreed to seek
election at the AGM as Non-Executive
Chairman with effect from 1 December
2009. His knowledge and experience have
proven invaluable to the Board.  This should
stand him in good stead to develop the
Chairman’s role.
Tracey Taylor was appointed as Group
Finance Director on 24 November 2008
having previously been Group Accounting
Director and a member of the Executive
Committee.  Tracey who has been with us
for ten years has stepped seamlessly into the
role justifying our policy of promoting
internally.  
During September 2009, Jonathan Bloomer
will come to the end of his three year term as
Senior Independent Non-Executive
Director, and I am pleased to report that he
has showed a willingness to continue in this
role for a further three years and will seek re-
election at the 2009 AGM. 
Chairman’s Statement
5
“Everything we do
would not be possible
without the hard work
of all our staﬀ and I
should like to pay
special tribute to them.
Without their eﬀorts
we would be unable to
produce such a
performance.”
I am pleased to report that the Group has had another successful year which is very satisfying in view of the
adverse market conditions.
The Board is proposing
a ﬁnal ordinary
dividend of 4.229
pence (2008: 2.42p)
and a special dividend
of 2.807 pence (2008:
2.324p)
Dividends per share
Total dividends have 
increased by 29%
2009: 10.101 pence
2008: 7.809 pence Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009
Chairman’s Statement
Executive Management 
Team Changes
My congratulations go to Ian Hunter
(Investment Marketing Director) and Nick
Marson (Vantage and Broking Operations
Director) on their appointments which took
effect from 1 July 2009.  Both Ian and Nick
have been with the Group for twelve years
having developed their expertise and
knowledge during that time.
We recognise that not all appointments can
be made internally and welcome Ian Gorham
to the Group as Chief Operating Officer with
effect from 1 September 2009.  Ian joins us
from Grant Thornton UK LLP where he was
a partner and head of the firm’s Financial
Services Group having built this up over a
period of six years.  Prior to this he ran the
Regulatory Practice in the South West for a
major consultancy.  We all look forward to
working with Ian and benefiting from his
knowledge of the financial services market. 
Regulation
Further details of the much awaited Retail
Distribution Review were issued by the
Financial Services Authority in June 2009.
As with all reviews there are still areas to be
clarified but we are delighted that in the
main it has vindicated our business model as
the one the whole industry should follow.
We do not feel there are any areas of the
review which cause ourselves any major
issues and we look forward to continuing to
work with our regulators to improve the
standards within our industry.  
Offices
On 22 July 2009 we signed the lease for the
occupation of our offices at One College
Square, Bristol (Harbourside).  The signing
of the lease signalled the start of the fit-out
works and although we have set a very tight
timetable we still anticipate being in
occupation by the end of January 2010.  
Conclusion
Peter Hargreaves in his Chief Executive
report has highlighted the performance of
the Group and the outlook for the future.
The Board of directors, together with the
Executive Committee, has operated
efficiently and with strength of purpose
during the year and I would like to thank all
my fellow directors for their contribution.
Our trading performance demonstrates the
resilience of our business model.  The
development of our Board, Executive
Committee and subsidiary Boards illustrates
the strength and depth of the management
team and our desire to develop the Group as
a public listed company.
Stephen Lansdown 
Chairman 
22 September 2009
6 These figures should be reviewed in the light
of the economic background.  Within this
accounting period the UK financial system
was close to breaking point, a situation
which resulted in the loss of public
confidence in all parts of the financial sector.
Investment businesses suffer during any
inclement investment climate.  Similarly
these conditions destroy investor
confidence.  The FTSE 100 Index at the
financial year end, 30 June 2009, was
approximately 40% lower than its peak at the
beginning of the millennium 9½ years prior.
A bear market not experienced since the
1930s.  
The FTSE All-Share Index is probably the
most representative of the assets that we
hold, and that index was some 24% lower at
the year end than it had been at the start of
our financial year.  This has a seriously
deleterious effect on the assets on which we
derive much of our earnings.  This was on
the back of a decrease in the All-Share Index
of 16% in the previous year ended 30 June
2008.  It was difficult to find anywhere
where investors could have made money
during the accounting period under review,
other than gilts and overseas government
bonds (where on the back of sterling’s
decline UK investors enjoyed a currency
bonus too).  Fortunately our clients had
negligible exposure to property, which on
the whole would have done worse than
almost any equity investments during that
period.  When you judge our trading results
in this light we can justly claim to be proud
of our performance.  
Outlook and Strategy
Twelve months ago we felt the outlook for
markets was gloomy and from the current
levels things don’t look much better today.
The only certainty is that we must be twelve
months nearer the revival of markets than
we were a year ago.  We think investors are
shell-shocked and most believe they already
have enough invested to benefit if this
market rally is sustained.  
Our strategy will therefore be no different
than it has been for most of this decade.
Rather than solely asking our clients to
commit new money we are continuing to
encourage existing clients to transfer the
remainder of their assets into Vantage
(Vantage is our investment platform which
holds and values clients’ investments giving
them a first class administration system for
managing their portfolios) and to find new
clients who will transfer their existing
investments into Vantage.  Investors can
transfer their ISAs, SIPPs and investments
held outside those tax wrappers.
One material loss of income will be the
return we make on cash balances.  This was
tailing off during the financial year under
review but the current financial year will
bear the brunt of this loss of revenue. 
A positive point is that low interest rates are
also causing savers to consider other homes
for their deposits which should eventually
benefit us.  Similarly the population has
once again become a net saver.  Initially this
will manifest itself in paying down debt but
will eventually result in investment.
The economic climate will affect all parts of
our business.  However as more and more
investment advisory businesses cease to
trade or fail to service their clients properly,
we benefit as investors seek our services.  We
believe that this is resulting in us improving
our market share.  Internally the ideas flow
has not subsided and our team remains
enthusiastic and motivated.  We should be
able to capitalise on the malaise within most
of our competitors.  It is interesting to note
that a major source of leads for new clients is
the result of referrals from existing clients.
Many businesses in our sphere view the
Retail Distribution Review (RDR) as a
threat on the horizon.  We count ourselves
fortunate that we could comply with most of
the provisions of the RDR immediately, and
the few exceptions without much effort or
cost.  We are therefore positive and believe
that when the confidence in the markets
becomes more sustained, we are as well
placed as any business in our sphere and
considerably better positioned than the
majority.
Summary
A significant portion of our earnings is based
on the value of our clients’ investments at
the end of each month.  On these dates in
the year under review the average level of
the FTSE 100 was approximately 4490.
Currently the index stands at 5134 (as at
21/09/09).  Should the market remain at
these levels or improve this will go some way
towards offsetting our reduced return on
cash deposits.  
We continue to capture market share and we
are well positioned for the RDR.  We have
been vigilant in containing recurring costs
and my team are still showing the innovative
flair they have exhibited over the years.  We
are seeing definite signs that the citizens of
the UK have a more positive attitude
towards saving.  We are a market leader in
ISAs, and the increased ISA allowance will
certainly benefit the group.  
The year ahead will be a challenging one but
I have every confidence that the directors
and staff of Hargreaves Lansdown will be
more than up to that challenge.
Peter Hargreaves 
Chief Executive Officer 
22 September 2009
Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 7
Chief Executive’s Statement
We are pleased to present our ﬁnal results for the year ended 30 June 2009. Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 8
Operating and Financial Review
This OFR has been prepared to provide
additional information to shareholders to
assess the current position and future
potential of the Group. It should not be
relied on by any other party for any other
purpose.  This OFR contains forward-
looking statements that involve risks and
uncertainties. The Group’s actual results may
differ materially from the results discussed in
the forward-looking statements as a result of
various economic factors or the business risks,
some of which are set out in this document.
Certain figures contained in this OFR,
including financial information, have been
subject to rounding adjustments.
Accordingly, in certain instances the sum of
the numbers in a column or a row in tables
contained in this document may not conform
exactly to the total figure given for that
column or row.
Long T erm Strategy and 
Key Objectives 
Hargreaves Lansdown is a leading provider of
investment management products and
services to private investors in the UK.  
Our flagship service, Vantage, is a direct-to-
private investor fund supermarket and wrap
platform. Vantage offers clients the
administrative convenience of being able 
to hold and manage their investments,
including unit trusts, OEICs, equities, bonds,
investment trusts and cash, irrespective of the
tax vehicle, in one place with consolidated
valuation reports, a single dealing service and 
instant online access.
In addition to offering externally managed
investment products, we manage funds
through our own range of multi-manager
funds and PMS, our discretionary portfolio
management service.  We also provide
independent financial advisory and
Stockbroking services to private investors and
advisory services to companies in respect of
group pension schemes.
In providing this breadth of services direct to
the private investor, we offer a compelling
proposition for clients. 
Fund supermarkets and wrap platforms
typically focus on servicing the IFA
community and are remunerated for acting as
administrator. The IFA using the platform is
remunerated for acting as distributor. We
provide our fund supermarket and wrap
platform direct to the private investor,
thereby performing the role, and capturing
the economics, of both the platform provider
and distributor.
We believe that this business model, together
with our significant purchasing power,
enables us to retain a greater share of the
annual management charge, also known as
renewal commission, from fund providers
than we would through acting solely as a
fund distributor or a fund platform provider. 
We strengthen our ability to win and retain
clients by discounting initial charges and
passing on a portion of the annual
management charge to clients as a loyalty
bonus on many Vantage accounts.  The
Hargreaves Lansdown business model allows
us to offer highly competitive prices to our
clients and achieve strong profitability.
We aim to create shareholder value by being
the leading provider of investment
management products and services to private
investors in the UK. 
Our strategy is focused on growing the 
value of assets we have under administration
or management and consequently increasing
our revenues, maintaining tight cost 
control and improving our profit margin. 
In particular, we will focus on: 
Administration
� providing high quality information and
services to our clients 
� continuous improvements to our
platform and infrastructure
� giving clients the confidence and support
to transact business online
� motivating and retaining our talented
employees 
� maintaining our client-focused and
entrepreneurial culture
� cost control and operational efficiency
� relocation of our staff into a single
location during the 2010 financial year
Marketing
� maintaining our dialogue with clients
� expanding our investor database
� improving our range of services
� remaining flexible, responsive and
opportunistic
� maintaining and improving our profile
� continual improvement of data capture
and data mining
Competition and Markets
The markets in which Hargreaves Lansdown
operates are highly fragmented. We compete
with other businesses providing investment
products and services direct to the private
investor. These include IFAs, execution-only
brokers, banks, building societies, life 
assurers and those fund supermarkets and
wrap platforms which are available direct to
the private investor. We believe that 
Vantage is the largest fund supermarket 
and wrap platform for the private investor 
in the UK.  Our target market is the UK 
mass affluent population looking to invest
their savings. 
This Operating and Financial Review (‘OFR’) describes the main trends and factors underlying our performance
and position during the year ended 30 June 2009 as well as those which are likely to aﬀect us in the future.  This
OFR has been prepared with consideration to the guidance provided in the UK Accounting Standard Board’s
2006 Reporting Statement on OFRs.  Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 9
Operating and Financial Review
Performance
We use a range of indicators across each of the divisions in order to assess performance. However, we consider the following measures to be
the key financial indicators when looking at the overall performance of the Group.  We refer to these measures throughout the Operating and
Financial Review, and the Chairman’s and Chief Executive’s Statements.
Notes:
1. The closing values as at 30 June 2009 and 30 June 2008, sourced from ProQuote.
2. Total value of renewal commission, management fees and interest earned on client money, as a percentage of total revenue.
3. Percentage of assets either held in an account which generates a fixed management fee or held in an account which generates management fees, renewal commission or interest 
proportionate to the value of assets held.
4. Unique number of clients holding at least one Vantage account (ISA, SIPP or Fund and Share Account) with a value greater than £100 at the year end.
5. Operating profit (before investment gains) divided by revenue.
6. Based upon earnings (before investment gains), and the weighted average fully diluted share capital.
Strategy/objectives Performance indicator 2009 2008
Growing the value of assets Total assets under administration £11.9bn £11.1bn +7%
under administration and 
management
FTSE All-Share index
(1)
2172.08 2855.69 -24%
Improving earnings quality Percentage of recurring revenue 
(2)
70% 72% -2pts
Proportion of assets earning recurring revenue 
(3)
86% 88% -2pts
Generating growth Number of active Vantage clients 
(4)
276,000 245,000 +13%
in Vantage
Maintaining tight cost control % operating profit margin 
(5)
52.5% 48.0% +4.5pts
and operational efficiency
Shareholder value and Underlying diluted earnings per share 
(6)
11.0p 9.0p +22%
superior financial performance
Total assets under administration can be broken down as follows: At 30 June 2009 At 30 June 2008
£’billion £’billion
Assets Under Administration “AUA”
- Vantage 10.7 10.0
- Other 0.2 0.2
AUA Total 10.9 10.2
Assets Under Administration and Management “AUM”
- Portfolio Management Service (PMS) 1.0 0.9
- Multi-manager funds outside of PMS 0.4 0.4
AUM Total 1.4 1.4
Less: Multi-manager funds included in both AUA and AUM (0.4) (0.4)
Total Assets Under Administration 11.9 11.1
A key indicator of success for the Group is
the extent to which it has increased its total
assets under administration (AUA) during
the period.  This involves encouraging
existing clients to entrust us with more of
their savings through the provision of
quality service, information and pricing,
whilst also attracting new clients through
our various marketing initiatives.  
In 2009 the value of total assets under
administration grew by 7% during the
period, from £11.1 billion to £11.9 billion.
This is largely made up of £10.7 billion
(2008: £10.0 billion) of assets held within
the Vantage service, with the remainder
being assets held within the Portfolio
Management Service and other nominee
portfolios.  The 7% (2008: 9%) growth in
asset values was attributable to strong new
business volumes, partially offset by
significant market decline. During the 2009
financial year, the FTSE All-Share index fell
by 24% (2008: 16%) and has on average
been 28% (2008: 1%) lower than during the
previous year. 
The Vantage service allows clients to hold
assets in tax efficient wrappers such as an
ISA or SIPP, or alternatively in a Fund and
Share Account.  The highest growth in asset
values during the year was evident in the
SIPP, increasing by 26%.  
As at 30 June 2009, the value of the Vantage
ISA was £4.7 billion, (30 June 2008: £5.0
billion), the Vantage SIPP was £2.9 billion
(30 June 2008: £2.3 billion) and the
Vantage Fund and Share Account was £3.1
billion (30 June 2008: £2.7 billion).   Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 10
Operating and Financial Review
The £0.7 billion (2008: £0.9 billion)
increase in Vantage assets from £10.0 billion
to £10.7 billion can be attributed to £1.8
billion of net new business inflows (2008:
£2.3 billion), other positive growth factors
with a value of £0.1 billion, such as retained
investment income and £1.2 billion of
market decline (net of interest credited to
clients on cash balances) compared to £1.5
billion of market decline in 2008. 
Vantage clients increased their cash
weightings during the period, peaking at
around 19% of assets during November
2008 and again just prior to the end of the
tax year.  The composition of assets across
the whole of Vantage changed during the
period. As at 30 June 2009, Vantage assets
were held 25% as equities (30 June 2008:
23%), 59% as funds (30 June 2008: 63%)
and 16% as cash (30 June 2008: 14%). 
The value of assets managed by Hargreaves
Lansdown through its own range of multi-
manager funds and PMS remained at £1.4
billion as at 30 June 2009 (2008: £1.4
billion). Of these assets under management,
£0.4 billion were held within Vantage as at
30 June 2009 (2008: £0.4 billion).  The
negative impact of the market during the
period is offset by £0.2 billion of net new
business which predominantly relates to the
Portfolio Management Service.
Analysis of our assets under administration
suggests that the FTSE All-Share index is
the most appropriate benchmark to use for
the market and so any change in this index
can form a useful comparison against the
growth in AUA.  The FTSE All-Share index
fell by 24% during the year ended 30 June
2009, from 2855.69 to 2172.08,
compounding the 16% fall during the 2008
financial year.  On average the FTSE All-
Share index has been 28% lower than during
the 2008 financial year. The effect of the
turbulent market during the year was more
than offset by net new business to give the
7% growth to total AUA. 
The importance of AUA is that they
produce a recurring revenue stream made
up of renewal commission, management fees
and interest.  The percentage of recurring
revenue attributable to these ‘quality
earnings’ fell from 72% in 2008 to 70% in
2009 due in part to the record volume of
stockbroking deals handled during the
second half of the financial year which
increased the level of transactional (non-
recurring) income.  The value of recurring
revenues increased by 7% from £87.1
million to £93.2 million.  
Not all of our AUA generate recurring
revenue. For example, there are no annual
charges levied on equities held in the
Vantage Fund and Share Account.  For these
assets the Group receives dealing
commission based upon the levels of trading
activity.  So when looking at the growth in
total AUA, it is relevant to consider another
indicator; the proportion of assets earning
recurring revenue. This has decreased from
88% in 2008 to 86% in 2009. This can
largely be attributed to the substantial
volume of Hargreaves Lansdown shares in
the Fund and Share account which, like all
equities in this account, do not generate any
recurring revenue.  The price of Hargreaves
Lansdown shares ended the year 38% higher,
with a value of £0.70 billion on the platform
compared to an opening value of £0.55
billion.
The indicators mentioned provide a useful
measure of how successful the Group has
been in gathering assets under
administration. However, it does not give
any indication of whether this success is
predominantly due to effective cross selling
to existing clients and their increasing
wealth or whether the Group is successfully
adding to its client bank. This is essential in
order to replace natural client losses and
expand the business.  The number of active
V antage clients acts as an indicator of how
successful the Group has been in this
respect. In 2009, the number has increased
by 13% (2008: 12%).  
The operating profit margin is another key
financial indicator, increasing from 48.0% to
52.5%. The chart depicts how the margin
has grown significantly year-on-year since
2005.  
The Group’s revenue, predominantly
derived from asset values, has been able to
grow quicker than costs. The efficiency of
the Vantage platform is central to the
scalability of the business model.
We consider the underlying diluted
earnings per share figure, adjusted to
exclude the impact of investment gains, to
be the most appropriate measure of
performance.  This increased by 22% in the
year from 9.0 pence to 11.0 pence.
Operating profit margin (%)
2005
2006
2007
2008
2009
26.0
33.0
41.2
48.0
52.5 Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 11
Operating and Financial Review
The economic and market downturn has
affected key revenue drivers such as the
value of assets under administration and
income dependent on interest rates.  
Notwithstanding the significant market
decreases, the Group has increased revenue
by £12.5 million or 10%, to £132.8 million
in the year ended 30 June 2009, compared
to £120.3 million for the year ended 30
June 2008. This was driven by a growth in
revenue of £12.7 million within the Vantage
division, together with a £1.7 million
increase to revenue in the Third Party
division. 
The Group’s operating profit increased by
21% to £69.8 million in 2009 compared to
£57.7 million for 2008.  The Group’s
operating profit margin increased from
48.0% to 52.5%.  The increase resulted from
10% revenue growth, coupled with tight
cost management resulting in an increase to
operating costs of just 1%.  During the year
the Group incurred £1.25 million of costs
relating to the forthcoming move to the
new office which is due to take place in
January 2010.
There were £3.3 million of investment
revenue and other gains during the year
compared to £3.2 million in the year ended
30 June 2008. The higher value in the
current year is predominantly due to
additional deferred consideration on the
disposal of a fixed asset investment during an
earlier year which resulted in net gains of
£0.7 million. This additional investment
gain was partly offset by a drop in
investment revenues from £3.1 million in
2008 to £2.5 million in 2009, arising from
interest on the Group’s cash balances.
Although the Group’s own cash balances
were maintained at higher levels than the
previous year, they generated lower income
due to the fall in interest rates.  
The Group’s reported profit before tax
increased to £73.1 million, compared to
£60.9 million in the previous year.  The
effective tax rate for the Group this year was
28.7% which has resulted in a reported
profit after tax for the year of £52.1 million,
compared to £42.4 million for the previous
year. 
Revenue by division
Year Ended Year Ended
30 June 30 June
2009 2008
£’million £’million
Vantage 84.9 72.2
Advisory 13.2 14.8
Discretionary 10.1 10.3
Third Party 18.0 16.3
Stockbroking 4.4 4.9
Central services 2.2 1.8
132.8 120.3
Revenue contribution by division 2009
The Group is currently organised into five
core operating divisions, based around
products and services. The directors do not
believe that it is appropriate to apply
segmental reporting to these divisions for
the reasons set out in note 5 to the financial
statements. This analysis of revenue by
division has been provided as additional
information to shareholders to assess the
position and potential of the Group.
The Vantage division increased its revenues
by £12.7 million, from £72.2 million to
£84.9 million. This resulted from growth in
assets under administration from £10.0
billion to £10.7 billion, the impact of a full
year’s income on assets acquired during the
previous year and improved revenue
margins. The overall average monthly
revenue margin within Vantage increased
from 74bps p.a. in 2008 to 90bps p.a. in
2009, as a result of the exceptional interest
rate environment and increased proportion
of client assets held as cash, and record
volumes of equity dealing particularly in the
second half of the year.  
Increased interest returns on cash were
achieved during the first half of the financial
year due predominantly to the divergence
between base rate and LIBOR.  The increased
margin has been gradually unwinding during
the second half of the financial year, and this is
likely to reduce further during the 2010
financial year as LIBOR continues to fall. The
increased interest rates obtained by the Group
have been passed on to clients in the form of
high interest cash offers available to clients
during the year in addition to improving the
margin in the Vantage division, assisting with
the retention of AUA.  During the year clients
cumulatively placed over £0.5 billion of cash
within our various high interest cash offerings. 
Revenues from the Advisory business
decreased by £1.6 million, from £14.8 million
to £13.2 million. In addition to initial and
renewal commission earned on the
distribution of third party investments, this
division earns initial charges and annual
management fees on assets introduced into
2
3
4
1 56
1
Vantage - 64%
2
Advisory - 10%
3
Third Party - 13%
4
Discretionary - 8%
5
Stockbroking - 3%
6
Central Services - 2%
Financial Review
2009 2008
£’million £’million
Revenue 132.8 120.3
Administrative expenses (63.0) (62.6)
Operating profit 69.8 57.7
Non operating income 3.3 3.2
Profit before taxation 73.1 60.9
Taxation (21.0) (18.5)
Profit after taxation 52.1 42.4 Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 12
Operating and Financial Review
the Group’s Portfolio Management Service
(PMS). The value of assets managed in PMS
increased by 6% from £929 million to £982
million. This growth can be attributed to high
inflows of £201 million, offset by market
decline.  The sole distribution of PMS is
through the Group’s team of advisors. The
number of advisors decreased from 86 at the
start of the year to 75 by 30 June 2009,
including 10 advisors allocated to the
division’s telephone advice service.  The
proportion of PMS assets invested in
Hargreaves Lansdown multi-manager funds
has increased during the year following the
launch of the HL Strategic Bond Fund in
February 2009.  As at 30 June 2009, 89% of
PMS assets were invested in Hargreaves
Lansdown multi-manager funds (2008: 63%). 
The multi-manager funds maintained
exposure to equities and corporate bonds
during the year, and the volatility of these
markets have had a negative effect on the
assets under management.  The Group’s
investment strategy has proved beneficial in
the longer term with two of the Group’s
fund of funds performing above their IMA
sector average since launch.  Performance
over the short term has picked up
encouragingly and three of the funds
performed above their sector average over
the first half of the 2009 calendar year.
Throughout most of the year the Group
operated four multi-manager funds, a fifth
fund, the HL Strategic Multi Manager Bond
Fund, was launched in February 2009 and
as such it is too soon for performance
comparisons.
The Discretionary division earns renewal
commission on underlying investments held
in PMS, including the value of PMS investments
in the Group’s multi-manager funds.  The
multi-manager funds charge 1% annually on
the value of funds under management, which
is recognised in the Discretionary division
net of the renewal commission paid to PMS
and Vantage.  Revenues in the discretionary
division fell slightly from £10.3 million to
£10.1 million.  The value of Hargreaves
Lansdown’s multi-manager funds increased
from £1.0 billion to £1.3 billion between 30
June 2008 and 30 June 2009. As at 30 June
2009, 68% of these were held within PMS,
31% were held within Vantage and the
remainder were held directly. 
Hargreaves Lansdown’s Third Party
business comprises those investment products
which are sold by the Group but not held in
Vantage or other Group nominee accounts.
These include corporate pensions, personal
pensions, annuities, third party investment
products and venture capital trusts. The
divisions handling Third Party business saw
a rise in revenues overall of 10%, from £16.3
million to £18.0 million. Of the £1.7 million
increase, £2.3 million can be attributed to
an increase in corporate pension revenue,
£1.0 million to an increase in personal
pensions revenue and £1.6 million to a fall
in third party investment revenues.
The £2.3 million growth in revenue within
the Corporate Solutions business results
from an increase in activity within existing
Group Personal Pension (GPP) schemes and
new schemes implemented in the year.
Takeover activity within two existing GPP
schemes alone accounts for a significant
proportion of the increase to revenue.  The
division continues to focus its marketing
efforts to raise awareness of the Hargreaves
Lansdown Group SIPP . Over time, the
management expects a transition in
corporate pensions from its traditional initial
commission model to a Group SIPP fund
based income model.  This is very much in
line with the Group’s focus on maximising
‘quality’ recurring revenues. 
As expected, revenue from the Third Party
Investments business continues to decline as
more clients choose to transfer their
investments onto the Vantage platform.
Revenue has fallen significantly from £5.6
million in 2008 to £4.0 million, exacerbated
by the fall in asset values as a result of the
market downturn.
Strong annuity rates, successful marketing
and ease of execution through our website
have again resulted in strong sales in
annuities which has increased revenues from
the Personal Pensions business to £4.8
million (2008: £3.8 million). 
The Stockbroking division provides broking
services which include CFDs, spread
betting, currency services and certificated
dealing.  The division experienced a decline
in revenue of 10%, from £4.9 million to
£4.4 million. As with the previous year, this
can primarily be attributed to a higher
proportion of equity trades executed
through Vantage and a higher proportion of
trades being placed online, attracting a
lower commission rate. During 2008 clients
were encouraged to transfer their shares into
the Vantage nominee service and
accordingly income within the Stockbroking
division decreased in favour of additional
income within Vantage, and this effect has
continued throughout 2009.  
Administrative expenses
Year Ended Year Ended
30 June 30 June
2009 2008
£’million £’million
Staff costs 37.2 36.5
Commission payable 8.3 10.2
Marketing costs 6.0 6.2
Depreciation, 
amortisation and 
financial costs 1.9 1.4
Other costs 9.6 8.3
63.0 62.6
In response to the market downturn, the
Group had an early and strong focus on
delivering efficiencies and controlling costs.
As a result, administrative expenses
increased by just 1% from £62.6 million to
£63.0 million. 
The Group’s largest cost remains staff costs,
which represents 59% of administrative
expenses (2008: 58%) and increased by 2%.
The number of staff (including directors)
employed at 30 June 2009 was 599, and the
average number of staff during year was
607, a decrease of 8% against an average of
657 for the comparative year.   The decrease
in staff numbers results mainly from a
reduction to the number of seasonal staff
retained and through filling vacancies
internally rather than by external
recruitment. 
Commission payable includes the share of
renewal commission which the Group
receives on funds held in Vantage which is
rebated back to clients as a cash loyalty
bonus (except with respect to those funds
held in the SIPP). It decreased by 19%, from
£10.2 million to £8.3 million, in line with
the fall in value of the related client assets. 
Group marketing spend decreased by 3%,
from £6.2 million to £6.0 million. This
includes the costs of sending information to
existing and potential clients, including the
Group’s flagship publication, the
Investment Times. These costs also include
an element of media advertising, postage,
stationery and the cost of corresponding
with clients. There has been an overall
increase in the level of client communication
and direct marketing activity in the year
compared to the previous financial year.
However the increase has been more than
offset by an increased proportion of client
marketing taking place online or via email Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 13
Operating and Financial Review
compared to postal campaigns, and lower
advertising rates, and this has contributed to
an overall decrease in marketing costs.
During the year under review we introduced
the facility for clients to opt out of receiving
paper valuations and contract notes. Instead
these documents are now available in
electronic format through our secure
website.  The financial benefit of these
changes is already materialising and the
savings will continue to grow as more
people and businesses choose to transact
business and receive information online.
The capital expenditure of the business
remains fairly low.  Accordingly, the charge
for depreciation, amortisation and financial
costs for the year was not significant at £1.9
million, increasing from £1.4 million in
2008. The increase is predominantly an
increase in depreciation.  
Other administrative costs and overheads
include items such as building and utility
costs, dealing costs, irrecoverable VAT,
compliance costs, insurance, professional
services, computer maintenance and
external administration charges.  These
increased by 16% from £8.3 million to £9.6
million, and includes £1.4 million of
professional fees relating to the Group’s
relocation to new offices during 2010.  
Non operating income 
Investment revenues increased from £3.2
million to £3.3 million. There was one
investment disposal gain of £0.7 million
during the year relating to an earnout on the
disposal of an investment during an earlier
year. This additional income was partly offset
by a drop in investment revenues from £3.1
million in 2008 to £2.5 million in 2009,
arising from interest on the Group’s cash
balances which although were maintained at
higher levels than the previous year generated
lower income due to the fall in interest rates.
Taxation
Taxation increased from £18.5 million to
£21.0 million. The higher charge can be
attributed to an increase in pre-tax profits,
whilst the effective tax rate has reduced to
around 28.7% in line with the standard rate of
taxation. 
Earnings per share (EPS)
The basic diluted EPS increased from 9.0
pence to 11.1 pence. Underlying diluted EPS
increased by 22%, from 9.0 pence to 11.0
pence. This is calculated as the earnings for
the year, adjusted to exclude the net effect of
investment gains, divided by the total
weighted average fully diluted number of
shares, including those held by the Employee
Benefit Trust (the “EBT”).  As at 30 June
2009, the EBT held sufficient shares to satisfy
all outstanding share options granted under
the Employee Share Schemes.  
Dividend
The directors are now recommending a final
ordinary dividend of 4.229 pence per
ordinary share and a special dividend of
2.807 pence per ordinary share, payable on
30 September 2009 to all shareholders on the
register at the close of business on 11
September 2009.  When added to the interim
dividend of 3.065 pence per share, this brings
the total dividends in respect of the year to
10.101 pence per ordinary share (2008:
7.809p).
An arrangement exists under which the
Hargreaves Lansdown EBT has agreed to
waive all dividends.
Cash flow and capital expenditure
Capital expenditure remained relatively low,
increasing from £1.1 million to £1.6 million,
the majority of which related to IT
infrastructure and software. 
The Group is highly cash generative with the
only significant outgoing from underlying
profits during the current year being the
payment of a dividend. 
The total cash balance of £87.4 million
reported in the balance sheet includes £10.2
million of client settlement account balances.
The Group’s own cash balances increased from
£64.5 million to £77.2 million during the year.
This includes cash held within the EBT which
has decreased from £10.9 million as at 30 June
2008 to £6.8 million at 30 June 2009 following
the purchase of additional Hargreaves
Lansdown plc shares during the year.  
Net assets, capital requirement 
and treasury policy 
Group net assets increased from £70.31
million to £84.65 million. 
The Group has four subsidiary companies
which are authorised and regulated by the
Financial Services Authority. These firms
maintain capital resources at a level which
satisfies both their regulatory capital
requirements as well as their working capital
requirements. As at 30 June 2009, the
aggregated Pillar 1 regulatory capital
requirement across the four regulated
subsidiary companies was approximately £7
million compared to capital resources of
approximately £41 million, which resulted in
a surplus of approximately £34 million.
The Group has no borrowings and deposits
its liquid funds with selected financial
institutions with high credit ratings. In 2009,
the Group’s funds were held with no fewer
than three of these institutions and up to as
many as five. The Board reviews its usage of
banks on a regular basis with the primary
objective of ensuring the security of its assets
and the secondary objective of maximising its
return on them. The Group actively
maintains cash balances on short term deposit
to ensure that it has sufficient available funds
for operations. This policy is designed to
ensure that the Group takes no material
credit risk. 
The Group is not exposed to significant
foreign exchange translation or transaction
risk. 
Operations
IT
We continue to run the vast majority of our
administration and systems development in-
house rather than outsourcing to third
parties. In particular, we maintain full control
of the Vantage platform which is fundamental
in the administration of both Vantage and the
Portfolio Management Service. The notable
exception is the administration of our multi-
manager funds which is currently outsourced.
We believe that having control of our own
platform gives us the ability to control service
levels and react quickly to changing markets
and the needs of our clients. Those areas of
our business which are outsourced are kept
under close review to ensure they continue to
meet our standards.
We continue to make further improvements
to our services and our underlying
infrastructure.  We added a number of new
facilities and services to our website including
the ability to set up and amend regular
savings plans, and the provision of electronic
investment reports and contract notes.  The
development of our website is a key part of
our strategy and we continue to see the
benefits of higher volumes of business being
transacted online.    Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 14
Operating and Financial Review
We have a continuing programme of work to
further improve the performance and
resilience of our systems and infrastructure.
Implementation of a number of
improvements to increase efficiency, improve
security and reduce risk have taken place
during the year.  However, certain changes
have been delayed until the 2010 financial
year to coincide with the re-location of the
business planned for January 2010.  The re-
location affords many opportunities,
particularly in terms of re-structuring our
network and enhancing our business
continuity arrangements.
Regulation
In their reports, the Chairman and Chief
Executive highlighted changes to the
regulatory landscape, in particular the FSA’s
Retail Distribution Review. We are confident
that our current business model is well
positioned for these changes and do not
expect any significant increase to our
regulatory capital requirements, against
which we already maintain a healthy surplus.     
Staff
Our employees are vital to the Group’s
continuing success and we continue to focus
on motivating and retaining our talented staff.      
More staff became shareholders during the
year through a maturing SAYE scheme.
During October 2008 we also granted new
options under this scheme. Our Employee
Benefit Trust (EBT) is well funded and holds
sufficient shares to satisfy all outstanding
options. Further shares were purchased by
the EBT during the year to be used for the
future incentivisation of staff. The Board
believes that the use of share schemes in the
future will continue to incentivise staff and
help align their interests with those of other
shareholders.  Many employees also receive
an annual bonus related to the overall
profitability of the Group.
In addition to remunerating staff well, we
aim to retain and attract staff through the
provision of training, career progression,
good communication and a vibrant culture.
The continued growth and success of the
organisation continues to create
opportunities for staff. We believe that
moving all our staff from our current
locations into a single building will improve
communication even further and ensure that
we maintain the dynamic culture that has
been crucial to the Group’s success.
Risks and Uncertainties 
There are a number of potential risks to the
Group which could hinder the successful
implementation of our strategy and have a
material impact on our long term
performance. These arise from internal or
external events, acts or omissions which
could potentially pose a threat to the future
success and survival of the Group. The
Board and senior management of
Hargreaves Lansdown are proactive in
identifying, assessing and managing risk. 
The risk profile of the business has not
changed significantly this year, but a few of
the risks included in the 2008 Annual
Report have materialised, such as market
volatility. We have not been immune from
the current economic climate and market
downturn.  A significant part of Group
revenue is based on the value of client
investments, and those have declined in
value during the year.  The high percentage
of assets in tax wrappers and a cash option
on our platform have reduced the impact of
the current market turbulence on our
performance.   However, when investor
confidence is low there is an increased risk
that the value of assets being withdrawn
from our platform will rise, although we
have not experienced this during the year.  
Market volatility and a consequent drop in
the performance of our in-house managed
funds remain as risks in the current economic
climate.  The exceptional interest rate
environment during the year, in particular the
divergence of LIBOR and base rate during
the first half of the financial year, has
benefited the Group.  However, the
continued low interest rates create the risk of
a decline in earnings due to a decline in
interest turn.
The difficulties seen in the banking sector led
us to explicitly include the risk of bank default
within the Group risk register, alongside the
more general risk of reliance on third parties.
Client money is currently spread across a
number of banks which have strong credit
ratings and participate in the UK Government
Credit Guarantee Scheme.  Our treasury
policy is regularly reviewed by management. 
Our IT platform and infrastructure have
performed well throughout the year and we
have continued to invest and implement
changes with a strong focus on mitigating the
risks we face in this crucial area.  
The risk factors mentioned below do not
purport to be exhaustive as there may be
additional risks that the Group has not yet
identified or has deemed to be immaterial
that could have a material adverse effect on
the business. Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 15
Operating and Financial Review
Changing
markets and
increased
competition
Fluctuations
in the capital
markets
The Group operates in a highly competitive
environment with developing demographic trends
and our continued profitability depends on our ability
to respond to these pressures and trends. 
Fluctuations in capital markets may adversely affect
trading activity and/or the value of the Group’s assets
under administration or management, from which we
derive revenues.
� Strong market position with pricing power. 
� Full control over scalable and flexible platform.
� Experienced management team with a strong track
record of innovation and responsiveness to the market.
� Organisational structure and culture promotes
responsiveness.
� Client focused with a loyal customer base.
� Younger clients attracted by SIPP offering.
� Focus on recurring revenue streams over the more
volatile transaction-based alternative.
� High proportion of assets under administration in tax
wrappers so clients less likely to withdraw funds and
lose tax benefits.
� Cash option enables clients to shelter from market
volatility.
Industry Risks
Risk Type Risk Mitigating Factors / Controls
Evolving
technology
The Group’s technology could become obsolete if we
are unable to develop and enhance our systems to
accommodate changing preferences, new products
and the emergence of new industry standards.  
� Track record of successful development.
� High awareness and sponsorship of the importance of
technology at Board level.
� Substantial development team in place. 
Regulatory
risk
The Group may be materially adversely affected as a
result of new or revised legislation or regulations or by
changes in the interpretation or enforcement of
existing laws and regulations. 
� Strong compliance culture.
� Business model and culture geared towards FSA
principle of treating clients fairly.
� Financial strength of the organisation provides comfort
should the capital resource requirement be increased.
Changes in
taxation law
Changes made to tax legislation could reduce the
attractiveness of some of the Group’s investment
products such as ISAs and SIPPs.
� The government is more likely to encourage savings in
order to plan for an ageing population, which is
currently under-provided for. 
Damage to
the Group’s
reputation
There is a risk of reputational damage through the
actions of unassociated third parties such as the set-up
of a copycat website to fraudulently obtain funds from
our clients.
� Clients educated to improve awareness of potential
‘boiler room’ and other online scams.
� Hargreaves Lansdown security procedures are well
communicated to clients so they are more likely to
question anything out of the ordinary.
Business
continuity
In addition to the failure of IT systems, there is a risk
of disruption to the business as a result of power
failure, fire, flood, acts of terrorism, re-location
problems and the like.
� Critical applications and infrastructure mirrored across
primary and secondary sites.
� Business Continuity Plan produced in line with best
practice methodologies.
Damage to
the Group’s
reputation
There is a risk of reputational damage including as a
result of employee misconduct, failure to manage
inside information or conflicts of interest, fraud or
improper practice. 
� High level of internal controls including checks on new
staff.
� Well trained staff.
� Strong compliance culture.
Errors,
breakdowns or
security
breaches in
respect of the
Group’s
software or
information
technology
systems
Serious or prolonged breaches, errors or breakdowns
in the Group’s software or information technology
systems could negatively impact customer confidence.
It could also materially breach contracts we have with
our customers and data protection laws, which could
render us liable to disciplinary action by governmental
and regulatory authorities, as well as to claims by our
clients.
� High level of resilience built into daily operations.
� IT performance, scalability and security are deemed top
priorities by the Board.
� Large, experienced in-house team of IT professionals
and established name suppliers.
� Internal procedures marked against industry best
practice.   
Operational Risks
Risk Type Risk Mitigating Factors / Controls Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 16
Operating and Financial Review
Liquidity risk
The risk that the Group is unable to meet liabilities as
they become due because of an inability to liquidate
assets or obtain adequate funding. 
� Highly cash generative business.
� Low working capital requirement.
� Group maintains a substantial surplus above regulatory
and working capital requirements.
� Treasury management policy provides for the
availability of liquid funds at short notice. 
Bank default
Given the current economic climate and in particular
the unprecedented problems faced by banks, there is a
risk that a bank could fail. 
� Only use banks with strong credit rating where we do
not believe the government would allow them to fail.
� Deposits spread across multiple banks.
� Regular review and challenge of treasury policy by
management.
Interest rate
risks
Risk of decline in earnings due to a decline in interest
turn.  Low interest rates make it harder to attract
client money.
� Good relationships with banks used.
� Access to competitive interest rates due to large value of
cash deposits placed.
� Regular fixed high interest cash offers available to clients.
Financial Risks
Risk Type Risk Mitigating Factors / Controls
Key 
personnel 
risk 
The loss of, or inability to recruit, key personnel could
have a material adverse effect on the Group’s business,
results of operations or financial condition.
� Succession planning encouraged throughout Group via
management and staff objectives.
� Success of the Group should attract high calibre
candidates.
� SAYE schemes in operation to incentivise staff and
encourage retention.  
� Two year lock up on shares held by several directors
and senior management.
Litigation or
claims made
against the
Group
The Group’s business entails the risk of liability
related to litigation from clients or third parties and
actions taken by regulatory agencies. There can be no
assurance that a claim or claims will be covered by
insurance or, if covered, will not exceed the limits of
available insurance coverage, or that any insurer will
remain solvent and will meet its obligations to provide
the Group with coverage. 
� High levels of PI cover. 
� Comprehensive internal review procedures for
marketing literature.
Reliance on
third parties 
Any regulatory breach or service failure on the part of
an outsourced service provider could expose the
Group to the risk of regulatory sanctions and
reputational damage.
� Due diligence forms part of the selection process for
key suppliers.
� Ongoing review by our internal audit team of key
business partners.
Strategic risk
There is a risk that management will pursue
inappropriate strategies or implement the Group’s
strategy ineffectively.
� Very experienced management team, with a highly
successful track record to date.
� Management have demonstrated an excellent
understanding of the market and continue to monitor
this effectively through regular dialogue with clients.
Performance
of in-house
managed
funds
If the investment performance of the Hargreaves
Lansdown multi-manager funds were to be poor
relative to the market or in absolute terms, the Group
would be vulnerable to redemption /  cancellation of
units by investors in those collective investment funds
and a consequential reduction in revenues received
from such activities.
� Only manage Funds of Funds, divested equity
management to focus on core strength.
� Fund analysis focuses on ‘stock selection’ skills of
manager rather than basic performance analysis.
� Multi-manager funds well diversified at the underlying
fund level as well as by number of funds.
� Well established and proven investment process. 
� Our Funds of Funds give investors exposure to a broad
range of underlying investments. They are therefore less
vulnerable to sector specific poor performance than
specialised or focused funds.
Risk Type Risk Mitigating Factors / Controls Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 17
Operating and Financial Review
Corporate Social Responsibility 
The Board considers that the environmental
risk from direct actions taken by the Group is
minimal, and that the main social responsibility
focus should be on the Group’s staff and
customers.  Information on the Group’s
employment policies and client service is
detailed in the Directors’ Report.  However,
we appreciate that alongside providing our
clients with the best service and producing
profits for our shareholders, we can also take
sensible steps to reduce the impact of our
business on the environment. We continue to
shred and recycle confidential waste and have
arrangements for the collection of recyclable
waste such as printer toner cartridges, cardboard,
newspapers and out-of-date literature.  We
also continue to recycle redundant IT
equipment through specialist third parties.   
In many respects, our objective of reducing
waste and minimising the environmental
impact of our business is aligned with our
objectives of protecting client data, reducing
costs, and improving efficiency. It is our aim
to deal with clients and other businesses
electronically wherever possible and we have
invested heavily in providing a user friendly,
comprehensive website and automated links
to banks and fund providers.  We provide the
facility for clients to opt out of receiving
paper valuations and contract notes. Instead
these documents are now available in
electronic format through our secure website.
Our investment in this area will continue and
we aim to further reduce the amount of paper
we use whilst providing better service.  The
benefits will grow as more people and
businesses choose to transact business and
receive information online.  
Business travel is another area which impacts
both our costs and the environment.  We do
not provide company cars as standard to
managers or to our network of advisors.
These advisors are spread throughout the UK
which minimises travel time. We provide a
telephone advice service to handle those cases
where a face-to-face meeting is unnecessary. 
We appreciate that there is more we could do
to reduce the impact of our business on the
environment and we aim to improve on the
positive steps we have already taken and
ensure that social, environmental and ethical
considerations are taken into account in our
future decision making.  When we move to
our newly built premises in 2010 we will
introduce ‘chilled beam’ air conditioning,
which is up to 60% more energy efficient and
intend to utilise technology to manage
lighting in a manner which minimises
wastage.  We will continue to introduce
energy-efficient schemes and look at ways of
optimising building energy performance and
reducing our electricity usage.    
We provide an Ethical Investment Service to
assist clients who wish to invest in a socially
responsible manner. This includes an ethical
investment guide and a dedicated section of
our website with a tool which enables clients
to search for funds which meet their ethical
criteria.
The Group seeks to contribute to the
communities in which we live and work. In
addition to providing employment opportunities
and minimising our environmental impact, we
have also chosen to support a local community
initiative. The Board have agreed to provide
support of £30,000 p.a for five years to a
project that, like our own business, seeks to
encourage savings and financial awareness.
The organisation provides these services in
deprived areas within Bristol. 
Every year we receive many requests for
support from a wide range of charitable and
social groups. Though often very worthy
causes, unfortunately we are not able to make
a donation to them all.  We have made it
company policy to support only one charity
or non-profit organisation each year which is
selected from suggestions received from
employees within the Group. This year we are
proud to support Bristol’s Under Privileged
Children’s Charity, and our fund raising
initiatives have been focused on this charity.
Future Outlook  
During the 2009 financial year, the credit
crisis turned into a financial and economic
crisis. Several banks have experienced
financial difficulty.  Asset values have seen
dramatic falls.  Throughout the crisis, our
clients have been able to rely on our
assistance and continued supply of relevant
information.  The Group has displayed
resilience in these difficult market conditions,
although there has been an inevitable impact
on the value of client assets under
administration due to the market downturn.
As other investment advisory businesses cease
to trade or fail to service their clients properly
we will benefit as investors seek our services.
As always, our ability to gather assets and
attract clients will depend on the severity and
duration of market fluctuations.  Although
we expect trading conditions to remain
challenging over the next twelve months, we
believe that investors will continue to transfer
their assets to us in order to benefit from the
services and information we provide,
together with the transparency, choice and
control available through our platform. 
In his statement, the Chief Executive
outlined some of the current challenges
facing the business, such as the low interest
rate environment, the economic climate and
market volatility.  The current low interest
rates are likely to lead to a material loss of
income in the 2010 financial year, although
the improved market levels seen during July
and August 2009 will go some way towards
offsetting this. 
The Board has reviewed the Group’s strategy
and has concluded that in the current
uncertain climate it still remains the right
approach.  We will focus on exploiting
opportunities with the aim of replacing the
lost income resulting from lower interest
rates and continuing to grow the business.
Opportunities include the increased ISA
allowance, new fund launches, the eligibility
of protected rights monies into our SIPP, the
prospect of investors becoming more cost-
sensitive and looking to reorganise their
portfolios by transferring into Vantage, and
an increase in demand for our advisory
services, as investors seek guidance through
the current market uncertainty. 
Resilient systems, a focus on providing clients
with a high-quality and low cost service, and
the adherence to cautious risk policies are at
the core of the Group’s approach.  We will
continue to invest in our systems, equipment
and infrastructure, as well as maintaining
high quality staff.  We believe such an
approach will ensure client satisfaction, help
maintain existing business and attract new
business and so will enhance long term value
for shareholders.
Tracey Taylor
Group Finance Director
22 September 2009 Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 18
Management T eam
Members of the Board:
The following directors have served during
the year: 
Non-Executive Directors:
Jonathan Bloomer -
Senior Non-Executive Director.  
Jonathan became a Non-Executive Director
of the Company in September 2006.
Jonathan is currently a partner in Cerberus
European Capital Advisors LLP, Executive
Chairman of Lucida plc and Chairman of
Scottish RE Group Limited.  Previously,
Jonathan was Chief Executive of Prudential
plc.  He also spent twenty years in practice
with Arthur Andersen LLP . Jonathan was
Chairman of the Practitioner Panel of the
FSA. His previous positions also include
board membership of the Association of
British Insurers, Geneva Association
(International Association for the Study of
Insurance Economics) and Railtrack plc.
Jonathan is also a Trustee and the Treasurer
of the NSPCC.
Michael Evans - 
Non-Executive Director.  
Michael became a Non-Executive Director of
the Company in September 2006. Michael is
a qualified actuary with 27 years' industry
experience.  He is Non-Executive Chairman
of the Unitholders' Advisory Committee of
the ING Real Estate Select Global Osiris
Fund and also Non-Executive Chairman of
the Manager's Advisory Committee of the
ING Real Estate Income Trust Limited and
has recently completed a two year assignment
as director of life insurance at Pinsent Masons
LLP . Michael was formerly Chief Operating
Officer at Skandia UK Limited.
Jonathan Davis -
Non-Executive Director.  
Jonathan became a Non-Executive Director
of the Company in February 2008.
Jonathan, a former senior business journalist
on The Times, The Economist and The
Independent, is a regular columnist in the
Financial Times and founder of Independent
Investor LLP, an independent investment
publishing business. He has degrees in
history and management from Cambridge
University and MIT and is the author of
three books on investment. He is also a
Director of Agrifirma Services Ltd.
Executive Directors:
Stephen Lansdown FCA, FSI -
Chairman.  
Stephen co-founded Hargreaves Lansdown
in 1981. Stephen qualified as a Chartered
Accountant in 1975 and specialised in
taxation with Touche Ross & Co.  Stephen is
also Chairman of Bristol City Football Club.
Stephen is a Fellow of the Securities &
Investment Institute.
Peter Hargreaves FCA, MSI -
Chief Executive.  
Peter co-founded Hargreaves Lansdown in
1981.  Previously, he qualified as a Chartered
Accountant and worked for a predecessor of
KPMG, Unisys Group and Whitbread plc.
Peter is Non-Executive Chairman of ITM
Power plc and is a Member of the Securities
& Investment Institute.
Tracey Taylor FCCA, MSI -
Group Finance Director.  
Tracey joined Hargreaves Lansdown in
1999.  In 2001, Tracey was appointed to the
role of Company Secretary and in 2006 was
appointed to the role of Group Accounting
Director and to the Executive Committee.
In 2008 she was appointed to the Board and
the position of Group Finance Director.
Prior to joining Hargreaves Lansdown she
qualified as an accountant.   Tracey holds an
MSc in Finance and is also a Member of the
Securities & Investment Institute (MSI).
Martin Mulligan, formerly a member of the
Board and Executive Committee, resigned as
Group Finance Director on 21 November
2008.
Members of the 
Executive Committee:
Mary Theresa Barry -
Group Marketing Director.  
Theresa graduated with a 2:1 in Politics from
the University of Bristol. She joined
Hargreaves Lansdown as the first full-time
employee in 1982.  Theresa has also worked
in marketing at Abbey Unit Trust Managers
Limited in the City of London. 
Nigel Bence -
Group Compliance Director.  
Nigel graduated with a First from Bristol
Polytechnic (now the University of the West
of England) with a BA Honours Degree in
Financial Services.  He joined the compliance
department of Hargreaves Lansdown in
1992.  In 2001, he was appointed to the role
of Group Compliance Director. 
Andrew Christian -
Managing Director 
V antage and Broking Operations. 
Andrew graduated from Nottingham
Polytechnic (now Nottingham Trent
University) with a 2:1 in Law.  He joined
Hargreaves Lansdown in 1991, and worked
initially on the investment helpdesk before
moving to Hargreaves Lansdown
Stockbrokers in 1992.  Andrew was
appointed Director of Hargreaves Lansdown
Stockbrokers in 1998. He took over
responsibility for all Vantage operations in
2003. 
Alex Davies -
Director of Pensions. 
Alex joined Hargreaves Lansdown in 1999.
He has a degree in Politics and International
Relations from the University of Kent at
Canterbury. He is responsible for the
pensions business (SIPPs, annuities and
Income Drawdown) as well as the
Hargreaves Lansdown website. Since
October 2008 Alex has also been responsible
for IT and Systems. He was appointed to the
board of Hargreaves Lansdown Pensions
Direct in 2006 and to the boards of
Hargreaves Lansdown Asset Management
and Hargreaves Lansdown Stockbrokers in
May 2009. 
Lee Gardhouse -
Investment Director 
Hargreaves Lansdown Fund Managers Ltd.
Lee graduated from Liverpool John Moores
University with a BA in Economics. Lee
joined Hargreaves Lansdown as a trainee
fund manager in 1995. He took
responsibility for the Hargreaves Lansdown
multi-manager fund range in 2001, and
manages the Portfolio Management Service.
He was appointed Investment Director of
Hargreaves Lansdown Fund Managers in
2006 and was appointed to the Executive
Committee in 2008.  
Peter Hargreaves, Stephen Lansdown and
Tracey Taylor are also members of the
Executive Committee. Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 19
Principal Group activities
Hargreaves Lansdown plc is the parent
company of a group of companies which
offers a range of investment products,
investment services, financial planning and
advice.  Hargreaves Lansdown has established
a reputation for providing high quality service
and value-for-money products to private
investors, whether they are making their own
investment decisions or looking for an
advisory or discretionary service. 
The Group's flagship service, Vantage, is a
direct-to-private investor fund supermarket
and wrap platform.  Vantage offers clients the
administrative convenience of being able to
hold and manage their investments, including
unit trusts, OEICs, equities, bonds,
investment trusts and cash, irrespective of the
tax vehicle, in one place with consolidated
valuation reports, a single dealing service and
instant online access.
The Group also provides independent
financial advisory and stockbroking services
to private investors and advisory services to
companies in respect of group pension
schemes. 
The subsidiary undertakings of the Group
during the year are listed in note 16 to the
financial statements.  The principal trading
subsidiaries, Hargreaves Lansdown Asset
Management Limited, Hargreaves Lansdown
Stockbrokers Limited, Hargreaves Lansdown
Fund Managers Limited and Hargreaves
Lansdown Pensions Direct Limited, are
authorised and regulated by the Financial
Services Authority.
Business review
A full review of the Group’s business
activities, financial position, cash flows,
liquidity position, together with the factors
likely to affect its future development,
performance and position are set out in the
Chairman’s and Chief Executive’s Report on
pages 5 to 7 and the Operating and Financial
Review on pages 8 to 17 and are incorporated
into this report by reference.  In addition,
note 3 to the Financial Statements discloses
the key sources of estimation uncertainty and
judgements made by the management; and
note 35 includes the Group’s policies and
processes on capital management, financial
risk management and details on its exposure
to such risks.
The Group maintains ongoing forecasts that
indicate continued profitability in the 2010
financial year.  Stress test scenarios are
undertaken and the outcomes of which show
that the Group has adequate capital resources
for the foreseeable future even in adverse
economic conditions.  The Group’s business
is highly cash generative with a low working
capital requirement; indeed, the forecast cash
flows show that the Group will remain highly
liquid in the forthcoming financial year.
The Directors therefore believe that the
Group is well placed to manage its business
risks successfully despite the current uncertain
economic outlook.  After making enquiries,
the Directors expectation is that the Group
will have adequate resources to continue in
operational existence for the foreseeable
future.  Accordingly, they continue to adopt
the going concern basis in preparing the
Annual Report and Financial Statements.
Post balance sheet events
On 22 July 2009 the Company signed the
lease for the Group’s new head office.
Further details are provided in note 33 to the
financial statements. There have been no
other significant events since the balance
sheet date, other than the declaration of the
final ordinary and special dividend to be paid
on 30 September 2009 as described below
and in note 11. 
Group results and 
Company dividends
Operating profit for the year ended 30 June
2009 was £69.8 million (2008: £57.7
million).  The Group profit after taxation for
the year ended 30 June 2009 was £52.1
million (2007: £42.4 million).  
Dividends are shown in note 11 to the
financial statements.  In addition to the first
interim dividend of 3.065 pence per share,
we have declared a second (final) ordinary
dividend of 4.229 pence per share, taking the
total ordinary dividends up to 7.294 pence
per share.  This total dividend payout equates
to 65% (2008: 60%) of post tax profits. We do
not intend to accumulate cash going
forwards and are therefore pleased to declare
a special dividend of 2.807 pence per share.
This equates to a further 25% (2008: 25%) of
post tax profits. Any special dividend in future
years will depend upon our future cash
requirements and therefore may vary.  
Capital structure
The Company’s shares are listed on the main
market of the London Stock Exchange.  The
Company’s authorised and issued share
capital during the year and as at 30 June 2009
are shown in note 22. 
The ordinary shares rank pari passu in all
respects.  Save as agreed at the general meeting
of the shareholders, the ordinary shares have
pre-emption rights in respect of any future
issues of ordinary shares to the extent conferred
by Section 561 of the Companies Act.  
No unissued share or loan capital of the Company
is under option or agreed, conditionally or
unconditionally, to be put under option.  The
Trustee of the Employee Benefit Trust (EBT),
a subsidiary of the Company, holds Ordinary
Shares for the EBT for the exercise of options
granted under the employee share schemes.
Restrictions on transfer of shares
At the time of the flotation of the Company
during May 2007, the then directors of the
Company and directors of the subsidiary
companies gave undertakings not to offer,
sell or contract to sell, pledge or otherwise
dispose of ordinary shares (directly or indirectly)
which were held by them on Admission to the
main market of the London Stock Exchange
and not sold as part of the flotation, other
than in certain limited circumstances.  The
remaining restrictions apply as follows:
(i) Following the Results Announcement for
the financial year of the Company ending
on 30 June 2009 but prior to the Results
Announcement for the financial year of
the Company ending on 30 June 2010,
to such number of Shares as is equal to 50
per cent. of the total number of Locked-
in Shares; and
(ii) Following the Results Announcement for
the financial year of the Company ending
on 30 June 2010 but prior to the Results
Announcement for the financial year of
the Company ending on 30 June 2011,
to such number of Shares as is equal to 25
per cent. of the total number of Locked-
in Shares.  
The restrictions set out above shall cease to
apply in their entirety following the Results
Announcement for the financial year of the
Company ending on 30 June 2011.
The directors present their annual report on the aﬀairs of the Group together with the ﬁnancial statements and
auditors’ report for the year ended 30 June 2009.
Directors’ Report Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 20
Substantial shareholdings
As at 1 September 2009, the Company has not
been notified of any shareholdings amounting
to more than 3 per cent of the issued share
capital of the Company other than the directors’
interests which are set out in the Directors’
Report and the following shareholding:-
At the date of notification, 26 August 2009,
Adam Norris held 14,552,549 shares which
amounted to 3.07% of the issued share capital
of the Company. 
Supplier payment policy
The Company’s policy , which is also applied by
the Group, is to settle terms of payment with
suppliers when agreeing the terms of each
transaction, ensure that suppliers are made
aware of the terms of payment and abide by the
terms of payment.  Trade creditors of the Group
at 30 June 2009 were equivalent to 26 (2008:
19) days’ purchases, based on the average daily
amount invoiced by suppliers during the year.
Critical accounting policies
The accounting policies adopted by Hargreaves
Lansdown have been consistently applied
throughout the current and prior year and are
set out in note 2 to the financial statements.
The preparation of our financial statements in
accordance with these policies has required
management to make a number of estimates,
assumptions and judgements. Further details
on key sources of judgements and estimation
uncertainty are provided in note 3 to the
financial statements. 
Employment policies
Disabled employees
Applications for employment by disabled persons
are always given full and fair consideration, bearing
in mind the aptitudes of the applicant concerned.
In the event of members of staff becoming
disabled, every effort is made to ensure that
their employment with the Group continues and
that appropriate training is arranged.  It is the
policy of the Group that the training, career
development and promotion of disabled persons
should, as far as possible, be identical to that
of other employees.
Directors’ Report
Number and % of Ordinary Shares Number of Ordinary Shares
Directors’ Interests at 30 June 2009 and at the date of this report at 30 June 2008
Non-executive and executive directors
J Bloomer 15,625 < 0.01% 15,625
M Evans 15,625 < 0.01% 15,625
P Hargreaves 152,717,606 32.20% 152,717,606
S Lansdown 109,060,843 22.99% 132,060,843
T Taylor 925,000 0.20% 889,224
Total 262,734,699 55.39% 285,698,923
Reporting
Shares in Hargreaves Lansdown plc are listed
on the main market of the London Stock
Exchange and as such the Company is required
to comply with its disclosure requirements.
Directors
The directors, who served throughout the
year except as noted, were as follows:
Non-executive directors:
Jonathan Bloomer 
Michael Evans 
Jonathan Davis 
Executive directors:
Peter Hargreaves (Chief Executive Officer)
Stephen Lansdown (Chairman)
Tracey Taylor (Finance Director) appointed
24 November 2008
Martin Mulligan (former Finance Director)
resigned on 21 November 2008
J Bloomer, M Evans and J Davis are members
of the Remuneration Committee, Audit
Committee and Nomination Committee.  
J Bloomer acts as Chairman of these
Committees and is the senior independent
non-executive director.
Retirement and re-election 
of directors
In accordance with the Company’s Articles of
Association at each annual general meeting
any director who has been in office for more
than three years or more since their
appointment or last re-appointment must
retire ‘by rotation’. Those retiring shall also
include any director who wishes to retire.  A
separate resolution to reappoint any director
appointed since the last annual general
meeting must be proposed.   
Tracey Taylor was appointed during the year
and offers herself for election at the
forthcoming annual general meeting.
Jonathan Bloomer and Michael Evans both
reach the end of their three year
appointments as non-executive directors on
18 September and 1 September 2009
respectively.  Being eligible, each of these
directors offers themselves for re-election.  
Biographical details of the directors proposed
for election and re-election are shown on
page 18.
Directors’ interests
During the period covered by this report, no
director had any material interest in a
contract to which the Company or any of its
subsidiary undertakings was a party other
than their own service contract, requiring
disclosure under the requirements of the
Companies Act 2006 except in respect of the
rental of the head office premises at
Kendal House as disclosed in note 34 to the
financial statements.
The directors who held office at 30 June
2009 had the following interests (including
beneficial interests) in the shares of the
Company.  Any changes in the interests of
directors between 30 June 2009 and the date
of this report are also shown below.
The figures shown below are exclusive of any
interests under Share Options. Details of Share
Options which have been granted to directors
as at the date of this report pursuant to
employee share schemes are set out in the
directors’ remuneration report. Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 21
Directors’ Report
Health and welfare
Hargreaves Lansdown is committed to providing
a safe and healthy environment in which its
employees can work. The Health and Safety
consultants who were previously engaged to
carry out a full review of our health and safety
policy and procedures, have been retained on
an ongoing basis to ensure that standards are
maintained. As a result, risk assessments have
been improved and updated training for
employees with health and safety
responsibilities is ongoing.
Employee consultation
Hargreaves Lansdown actively encourages
employee involvement and consultation and
places emphasis on keeping its employees
informed of the company’s activities and
financial performance by such means as the
employee intranet and publication to all staff
of relevant information and corporate
announcements.  
Equality and diversity
Hargreaves Lansdown recognises, respects
and values difference and diversity.  We are an
equal opportunities employer and it is our policy
to ensure that all job applicants and employees
are treated fairly and on merit regardless of
their race, gender, marital status, age, disability ,
religious belief or sexual orientation.  
The Group seeks to ensure all employees and
applicants to its businesses are given equal
opportunity in all aspects of employment to
ensure that the Group's businesses attract,
retain and promote the best available talent.
All the businesses work to embed these
principles in all aspects of their management
practices and to ensure that this is evident to
employees in their day-to-day work.  Further
employment information is provided in the
Operating and Financial Review.
Client service
Hargreaves Lansdown aims to ensure that we
treat our clients fairly in every aspect of our
dealings with them and to provide a first class
service at all times. 
The fair treatment of our clients is central to
our corporate culture and we aim to provide
the best information, the best service and the
best prices to our clients. We strive to provide
clear information to all our clients and keep
them appropriately informed at all times whilst
they remain a client of Hargreaves Lansdown.
We aim to ensure that our services and
investment performance meet our clients’
expectations.  We continually strive to improve
our services to ensure they are designed and
targeted appropriately and that any advice we
provide is suitable for our clients. We will
never impose unreasonable barriers to
prevent clients from switching their
investments or make a complaint.
If clients ever feel the need to complain, our
complaints handling team carefully investigate
our client’s complaint and endeavour to provide
them with a fair resolution. We benchmark our
performance in treating clients fairly against
statistics published annually by the Financial
Ombudsman Service for the industry. The
results for the 2009 financial year compared
against the last figures published by the
Ombudsman show that Hargreaves Lansdown
is achieving exceptionally good results in
treating our clients fairly if they raise a complaint. 
Special business
Articles of Association
The company’s Articles of Association can only
be amended by special resolution at a general
meeting of shareholders.  It is proposed to adopt
new Articles of Association at the 2009 Annual
General Meeting (AGM). Since the directors
are proposing a large number of changes, to
take account of developments in law and
practice applicable to companies since the current
Articles of Association were adopted in 2007, it
is more appropriate to adopt new Articles of
Association, rather than amend the existing
ones.  A circular to shareholders will be sent
with the Notice of Annual General Meeting
containing a summary of principal changes
proposed and the reasons for these changes.
Authority to purchase own shares
The Company was granted authority at the
AGM in 2008 to purchase its own shares up
to an aggregate value of 10% of the issued
nominal capital. This authority expires at this
year’s Annual General Meeting and a special
resolution will be proposed for its renewal.
Directors’ authority to allot shares and
waiver of pre-emption rights
Resolutions are to be proposed as special
business at the AGM on 27 November 2009
to enable the directors to allot unissued shares
and, subject to the limits therein contained, to
allot shares for cash other than to existing
shareholders in proportion to their shareholdings. 
The resolution enabling directors to allot
unissued shares will be limited to the allotment
of shares up to a maximum nominal amount of
£202,725.50, which represented the difference
between the company’s authorised and issued
share capital at 21 September 2009. The
directors do not have any present intention of
exercising such authority and the authority
will expire at the conclusion of the next AGM
after the passing of the proposed resolution.  
The resolution enabling the directors to allot
shares other than to existing shareholders in
proportion to their shareholdings is limited
to the allotment of shares up to a maximum
nominal value of £94,863.72, which
represents 5% of the total ordinary share
capital in issue as at 21 September 2009. 
Both of these resolutions seek authorities which
are in accordance with the current guidelines
issued by the Investment Committees of the
Association of British Insurers and the
National Association of Pension Funds.
Share schemes
Three resolutions are to be proposed as
special business at the 2009 AGM to enable
the directors to adopt two new share incentive
plans and renew one existing share option
scheme.  The existing all-employee Save as You
Earn scheme will be renewed in addition to
adopting a new Hargreaves Lansdown plc
Executive Joint Share Ownership Plan (JSOP),
and a Library Information Services Ltd
Executive Share Option Scheme (LIS Option
Scheme).  Further details of these schemes are
provided in the shareholders’ Notice of AGM. 
Auditors
Each of the persons who is a director at the
date of approval of this annual report
confirms that:
� so far as the director is aware, there is no
relevant audit information of which the
Company's auditors are unaware; and
� the director has taken all the steps that
they ought to have taken as a director in
order to make themselves aware of any
relevant audit information and to
establish that the Company's auditors are
aware of that information.
This confirmation is given and should be
interpreted in accordance with the provisions
of s418 of the Companies Act 2006. 
Deloitte LLP have expressed their willingness
to continue in office as auditors and a
resolution to reappoint them will be proposed
at the forthcoming Annual General Meeting.
By order of the Board,
Simon Power 
Company Secretary
22 September 2009 Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 22
Corporate Governance Statement
Statement of compliance with the 
Combined Code
During the year ended 30 June 2009,
Hargreaves Lansdown plc has applied the
principles and complied with the provisions
of Section 1 of the Combined Code on
Corporate Governance (‘the Code’) with the
exception of ‘Independence of the Chairman
on appointment’:-
The Chairman does not meet the independence
criteria set out in the Code since he is an
executive director of the Company. The
Board considers that departure from the
Combined Code in this area is appropriate
and gave its reasons for non-compliance both
in the prospectus published as part of the
Company’s Initial Public Offering, and in
subsequent Annual Reports.  In his
Chairman’s statement, Stephen Lansdown
has provided details of the proposed changes
to his role and the agreement of the Board to
recommend Michael Evans for appointment
as non-executive Chairman with effect from
1 December 2009, following which the
Group will be in compliance with this
provision of the Code.   
The Company’s auditor, Deloitte LLP, are
required to review whether the above
statement reflects the Company’s compliance
with the nine provisions of the Combined
Code specified for its review by the Listing
Rules and to report if it does not reflect such
compliance.  No such report has been made.
Details of how Hargreaves Lansdown
complied with the Code are summarised in
this statement.
Statement about applying the 
principles of the Code
The Company has applied the principles set
out in section 1 of the Code, including both
the main principles and the supporting
principles, by complying with the Code as
reported above.  Further explanation of how
the principles and supporting principles have
been applied is set out below and in the
directors’ remuneration report and Audit
Committee report.
Directors
Board of directors
As at 30 June 2009, the Board of
Hargreaves Lansdown comprised of 
3 executive members and 3 independent
non-executive directors. All of the directors
bring strong judgement to Board
deliberations.  The Board is of sufficient 
size and diversity that the balance of skills
and experience is considered to be
appropriate for the requirements of 
the business.
The Chairman has primary responsibility for
running the Board. The Chief Executive,
Peter Hargreaves, has executive
responsibilities for the operations, results
and strategic development of the Group.
Clear divisions of accountability and
responsibility exist and operate effectively
for these positions.
The Board requires all non-executive
directors to be independent in their
judgement and free from any business or
other relationship that could interfere with
the exercise of objective judgement. The
non-executive directors do not participate in
any of the Group’s share option or other
incentive schemes.
The Board uses its judgement to determine
if a non-executive director is independent of
management and whether any business or
other relationship exists which could
materially interfere with the exercise of
objective, unfettered or independent
judgement by the non-executive director or
otherwise affect the non-executive director’s
ability to act in the best interests of the
Group.  In doing so, the Board gives due
regard to provision A.3.1 of the Combined
Code.
The Board concludes that Mr Evans and Mr
Bloomer were independent directors
throughout the financial year. The Board
has considered the relationships explained
below, and is also satisfied that Mr Davis has
been an independent director under the
terms of the Combined Code since his
appointment.   
1. In November 2007 Mr Hargreaves
provided a personal loan on commercial
terms to Mr Davis to assist with his purchase
of an investment in Agrifirma Limited.
The US$417,000 (£210,000) loan was
provided prior to Mr Davis being
appointed to the Board. The loan was
repaid in June 2009.  The Board has taken
advice from the Company’s lawyers and
on review considers that under the
provisions of the Combined Code the loan
constituted a relationship or circumstance
which could have appeared to affect Mr
Davis's judgment and should have been
disclosed as such in the 2008 Annual Report. 
The Board considers Mr Davis to be
independent in character and judgement.
He provides a robust and effective
challenge to management, contributes
effectively to Board debate and has
proved himself willing to defend his
viewpoint for the overall good of the
Group. The Board and Committee
debates and decisions reached since his
appointment have been reviewed and the
Board is satisfied that no situation has
arisen throughout the period which could
have been affected by any perceived
conflict of interest. 
2. Mr Davis is a director of Agrifirma
Services Limited, a former UK subsidiary
of Agrifirma Limited, which following a
restructuring in May 2009 has been
acquired by Agrifirma Brazil Limited.  He
is also a part time consultant to and
shareholder in Agrifirma Brazil Limited.
Mr Hargreaves also holds investments in
Agrifirma Limited and Agrifirma Brazil
Limited.  The Company itself has no
dealings with Agrifirma Limited or
Agrifirma Brazil Limited. The Board has
reviewed this arrangement and concluded
that as the shareholding of each director
is of a minority level, the common
shareholding does not interfere with Mr
Davis’ independence.
Biographies for the Board of directors,
including details of any other significant
directorships or appointments, are set out on
page 18.
In this section of our Annual Report and Accounts, we explain the key elements of the Group's corporate
governance structure. The directors of Hargreaves Lansdown plc are committed to high standards of corporate
governance and the Company is committed to the principles of corporate governance contained in the
Revised Combined Code on Corporate Governance that was published in June 2008 by the Financial Reporting
Council (‘the Code’) for which the Board is accountable to shareholders.  Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 23
Role of the Board
The Board determines the strategic direction
of the Group and reviews operating, financial
and risk performance. It is the decision-
making body for all other matters deemed
material to the Group in strategic, financial
and reputational terms. The non-executive
directors constructively challenge the
management team and supplement the
executive directors' management expertise
with a diversity of business skills and
experience. 
The Board and its Committees meet
regularly.  Formal minutes or reports of each
of these meetings are circulated to all
directors. 
The Board has delegated full authority to the
Executive Committee except for a list of
matters which are reserved for decision by the
Board.  There is a formal schedule of those
matters reserved to the Board, which
includes:
� approval of corporate strategies and
objectives; 
� approval of interim and final financial
results and payment of dividends; 
� the appointment of directors; 
� approval of major capital or revenue
expenditure; 
� approval of forecasts and medium term
plans; 
� approval of significant changes in the
Group structure and product range;
� corporate governance matters.
The Board has delegated the day-to-day
management of the Group to the Group
Chief Executive, who is supported by the
executive directors and senior executives. The
Group Chief Executive and executive
directors of the Group are responsible to the
Board for developing strategy and the
profitability and overall performance of the
Group. 
Board responsibilities
The Board meets a minimum of four times
each financial year to discuss matters such as
current performance, long term planning,
material capital commitments and risk
management.  During the intervening
months, meetings of the Executive
Committee are held and minutes from the
meetings are circulated to the Board.
Board committees 
There are a number of Committees of the
Board to which various matters are delegated.
The Committees all have formal Terms of
Reference that have been approved by the
Board, and performance of the Committees
are assessed annually by the Board.  Terms of
reference of the Audit, Remuneration and
Nomination Committee are available on the
Group’s website (www.H-L.co.uk).  
Details are set out below:
Audit Committee
The Audit Committee is responsible for
assisting the Board in discharging its
responsibilities for financial reporting
including the integrity of the annual and
interim reports, preliminary results and any
other formal announcements relating to
financial performance, risk reporting and
reviewing the Company’s internal corporate
control.  The Audit Committee’s primary
responsibilities are to review the financial
statements, to review the Group’s internal
control and risk management systems, to
consider the appointment of the external
auditors, their independence and reports to
the Committee, as well as to review the
programme of Internal Audit.  
The responsibilities of the Audit Committee
and an explanation of how it applies the
principles of the Combined Code, are set out
in the audit committee report. 
The Audit Committee is chaired by Jonathan
Bloomer and its other members at 30 June
2009 were Michael Evans and Jonathan
Davis.  The Audit Committee meets at least
three times each year but more frequently
when required, and met four times during
this financial year.  On each occasion the
Head of Internal Audit, Group Compliance
Director and Group Finance Director were
invited to attend.  The external auditors
attended all of the meetings.
Remuneration Committee
The Remuneration Committee is responsible
for the framework or broad policy for the fair
remuneration of the Executive Directors of
the Group as well as their performance
management.  These will be determined with
due regard to the interests of the Company
and the Shareholders.  It monitors the levels
and structure of remuneration for senior
management and seeks to ensure that they
are designed to attract, retain and motivate
the Executive Directors needed to run the
Company successfully.   
The Remuneration Committee meets at least
twice during each financial year, and met four
times during the current year.  The
Committee is chaired by Jonathan Bloomer
and its other members at 30 June 2009 were
Michael Evans and Jonathan Davis.  The
responsibilities of the Remuneration
Committee and an explanation of how it
applies the directors’ remuneration principles
of the Combined Code, are set out in the
directors’ remuneration report.
The Nomination Committee
The Nomination Committee leads the
process for Board appointments, re-election
and succession of directors and the
Chairman. It is responsible for making
recommendations to the Board concerning
the composition of the Board including
proposed appointees to the Board, whether
to fill any vacancies that may arise or to
change the number of Board members.  
The Committee is chaired by Jonathan
Bloomer and its members at 30 June 2009
were Michael Evans and Jonathan Davis.
The Company Secretary may also attend in
his capacity as Secretary of the Company.
The Nomination Committee meets at least
once each year.  The Committee met five
times during the year.
There is a formal, rigorous and transparent
procedure for the appointment of new
directors to the Board. This process will
involve the Nomination Committee
interviewing suitable candidates who are
proposed by either existing Board members
or by an external search company. Careful
consideration will be given to ensure
appointees have enough time available to
devote to the role and that the balance of
skills, knowledge and experience on the
Board will be maintained. When the
Committee has found a suitable candidate,
the Chairman of the Committee will make a
proposal to the whole Board and the
appointment is the responsibility of the whole
Board following recommendation from the
Committee. 
All directors have to submit themselves for
re-election at least every three years if they
wish to continue serving and are considered
by the Board to be eligible. At the 2009
Annual General Meeting, Tracey Taylor
offers herself for election, and both Jonathan
Bloomer and Michael Evans offer themselves
for re-election. 
The Nomination Committee has determined
that Michael Evans has excellent skills to fulfil
the position of Chairman of the Board when,
as discussed in the Chairman’s statement,
Stephen Lansdown steps down as Chairman.
The Board believes that his skills and
experience and knowledge of the Group have
Corporate Governance Statement Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 24
proven to be invaluable and have positioned
him as the ideal candidate for the role.  As
such, it was not necessary to use an external
search consultancy or open advertising for
recruitment of a Chairman. 
Executive Committee
The Board has delegated full authority to the
Executive Committee subject to a list of
matters which are reserved for decision by the
full Board.  In particular the Executive
Committee is responsible to the Chief Executive
for developing and monitoring every aspect
of the Group businesses on a continuing
basis, for developing and implementing
business strategy as agreed by the Board and
ensuring that day to day operations are
conducted in accordance with the relevant
regulatory and statutory requirements.
The Executive Committee is chaired by
Stephen Lansdown, and Peter Hargreaves in
his absence, and also comprises Tracey
Taylor, Nigel Bence, Andrew Christian, Lee
Gardhouse, Theresa Barry and Alex Davies.
Martin Mulligan was a member of the
Committee until November 2008. 
The Executive Committee meets at least
quarterly but more frequently when required,
and met four times during the current
financial year.
Training
The Group’s overall objective is to maintain
and enhance professional standards for all its
employees.  It is particularly necessary to
maintain these standards for all staff who fall
under the scope of the Financial Services
Authority Training and Competence rules.
All directors and staff under the scope of
these rules are required to perform certain
training during a year.  
For all new directors, the Chairman is
responsible for preparing and implementing a
personalised induction programme including
guidance as to their duties, responsibilities and
liabilities as a director of the Company.  The
induction process can include time with several
of the senior managers and executives in a
number of business areas, demonstrations of
systems where relevant and visits to the offices.  
Every director has access to appropriate
training as required subsequent to
appointment.  The need for director training
is regularly assessed.
Performance evaluation
Individual appraisal of each director’s
performance is undertaken either by the
Chief Executive or Chairman each year and
involves meetings with each director on a
one-to one basis.   The non-executive
directors, led by the senior independent
director, carry out an appraisal of the
performance of the Chairman. 
Other information
Any director has access to the advice and
services of the Company Secretary and may
seek independent professional advice, if
necessary, at the Company’s expense. The
Company Secretary is responsible to the
Board for ensuring Board procedures are
followed.  Any removal or appointment of
the Company Secretary is decided by the
Board.
All directors may take independent
professional advice at the Company’s expense
in conducting their duties. 
Relations with shareholders
Shareholder relations
The Company is committed to maintaining
good communications with shareholders 
and has a programme of communication 
with shareholders through interim and
annual reports, the AGM and the Investor
Relations section of the corporate website at
www.H-L.co.uk.  
It is intended that all directors will attend
each AGM and shareholders will be given the
opportunity to participate by asking
questions at the AGM on 27 November
2009.  In addition, the Chairman, Chief
Executive and Group Finance Director
welcome dialogue with individual
institutional shareholders in order to 
develop an understanding of their views
which can be fed back to the Board. 
General presentations are also given to
analysts and investors covering the annual
and interim results. 
Attendance at meetings during the financial year by members of each committee
Board Audit Remuneration Nomination Executive
Meetings * Committee Committee Committee Committee
meetings meetings meetings meetings
Directors
Peter Hargreaves 4/4 - - - 4/4
Stephen Lansdown 4/4 - - - 3/4
Tracey Taylor 3/3 - - - 3/4
Martin Mulligan 1/1 - - - 1/2
Jonathan Bloomer 4/4 4/4 4/4 5/5 -
Michael Evans 4/4 4/4 4/4 5/5 -
Jonathan Davis 4/4 4/4 4/4 5/5 -
Executive Committee
Theresa Barry ---- 4/4
Nigel Bence ---- 4/4
Andrew Christian ---- 4/4
Lee Gardhouse ---- 4/4
Alex Davies ---- 4/4
* Where Board meetings have been held for a specific purpose to discuss matters at short notice, all Board members are sent papers and given the opportunity to comment by
telephone or email if they are unable to attend at short notice. 
Corporate Governance Statement Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 25
Accountability and audit
Going concern
The financial statements are prepared on a
going concern basis as the directors are
satisfied that, at the time of approving the
financial statements, the Group has the
resources to continue in business for the
foreseeable future.
Internal control and risk management
The Board has overall responsibility for the
Company’s system of internal control and
risk management and for reviewing its
effectiveness. The directors are required to
establish systems for the control of the
conduct of the business and to conduct the
business with prudence and integrity.  In
discharging this responsibility, the Board
confirms that it has established the
procedures necessary to apply the Code,
including clear operating procedures, lines of
responsibility and delegated authority. These
procedures have been in place throughout
the year and are regularly reviewed by the
Board. Business performance is managed
closely and the Board and Management has
established processes, as part of the normal
good management of the business, to
monitor:
� progress towards strategic objectives;
� financial performance, within a
framework including forecasting,
financial reporting, reviewing variances
against plan and taking appropriate
management action; and
� risk management processes, which accord
with the Turnbull guidance and are
supported by reports from the Head of
Internal Audit that the significant risks
faced by the Company are being
identified, evaluated and appropriately
managed, having regard to the balance of
risk, cost and opportunity.
The key features of the system of business
control and risk assessment established by the
Board include:
� a well defined management structure
with clear accountabilities and
delegations; 
� the Group Audit Committee, the Executive
Committee, and a system of executive risk
managers, which enhance and support
the oversight role of the Board; 
� management information systems which
enable the Board to receive
comprehensive monthly analysis of
financial and business performance;
� an Internal Audit function which reports
to the Audit Committee on the
effectiveness of key internal controls in
relation to these major risks; 
� a Compliance function to manage
relationships with the Group's key
regulators and to identify major
compliance and regulatory risks; 
� a Money Laundering Reporting Officer
and anti-money laundering procedures,
and controls including training
programmes for all staff; 
� a risk manager who specifically considers
the potential exposure of the Group to
loss through financial crime and the
controls in place to mitigate the risk of
such loss; and
� a Group Risk Strategy requiring all senior
managers to identify major risks and
monitor the effectiveness of internal
controls applied throughout the business.
The Group's Internal Audit Department
carries out reviews of the effectiveness of
internal controls operated by each
department or business unit as part of the
audit of that department or unit.
In addition, the Audit Committee receives
reports from the Head of Internal Audit on
the work carried out under the annual
internal audit plan, and also reports from the
external auditors.
The Board has delegated oversight of the
Group's Internal Control Policy to the Audit
Committee. The Audit Committee received
reports on the current operation of internal
controls in relation to key and emerging risks,
and the Audit Committee carried out an
overall review of the effectiveness of the
Group's system of internal control for the
year to 30 June 2009 and the period to the
date of this report, on behalf of the Board.
The Board has delegated oversight of the
Group’s risk management policies and
procedures to the Audit Committee.
Enhancements to the process used for
identifying, evaluating and managing the
significant risks faced by the Group were
introduced in early 2009.  A Risk Co-
ordinator has been appointed to draw all the
registers together and report to the directors
and non-executive directors on a quarterly
basis, for their review and feedback. A
summary of the significant risks is provided
within the Operating and Financial Review.
This process is regularly reviewed by the
Board and accords with the Turnbull
Guidance for directors on the Combined
Code.
The Board receives minutes and reports from
the Chairman of the Audit Committee and
the Executive Committee. These identify any
significant issues relating to the adequacy of
the Group's system of internal control and to
the risk management policies and procedures
across the full range of risks to which the
Group is exposed, and how they are being
controlled. The Board, the Executive
Committee and the Audit Committee receive
reports from the Head of Internal Audit
identifying the effectiveness of internal
controls together with specific reports on any
major issues. 
The majority of the activities of the Group,
including the systems of business control, are
subject to supervision by the Financial
Services Authority. The Group is required on
a regular basis to submit detailed prudential
and statistical returns covering all areas of its
business and meets regularly with its
supervisors, conducting the relationship in an
open and constructive manner.
Through the monitoring processes set out
above, the Board has conducted a review of
the effectiveness of the system of internal
control during the year ended 30 June 2009.
The system of internal control is designed to
manage, rather than eliminate, the risk of
failure to achieve business objectives and
provide reasonable assurance as to the
effectiveness of the safeguards protecting the
business against the risk of material error, loss
or fraud. In that context, the review, in the
opinion of the Board, did not indicate that
the system was ineffective or unsatisfactory
and the Board is not aware of any change to
this status up to the approval of this Annual
Report.
Model Code
The Company has its own internal dealing
rules which extend the FSA Listing Rules
Model Code provisions to all employees.
Audit Committee and auditors
The Audit Committee report on the
following pages provides details of the role
and activities of the Committee and its
relationship with the internal and external
auditors.
Stephen Lansdown
Chairman
22 September 2009
Corporate Governance Statement Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 26
Summary of the role of the 
Audit Committee
The Audit Committee is appointed by the
Board.  The Audit Committee’s terms of
reference include all matters indicated by the
Combined Code.  The terms of reference are
considered annually by the Audit Committee
and are then referred to the Board for approval.
The Audit Committee is responsible for:
� monitoring the integrity of the financial
statements of the Group and any formal
announcements relating to the Group’s
financial performance and reviewing
significant financial reporting judgements
contained therein;
� reviewing the Group’s internal financial
controls and, unless expressly addressed
by the Board itself, the Group’s internal
control and risk management systems;
� monitoring and reviewing the effectiveness
of the Group’s internal audit function;
� making recommendations to the Board,
for a resolution to be put to the
shareholders for their approval in general
meetings, in relation to the appointment
of the external auditors and the approval
of the remuneration and terms of
engagement of the external auditors;
� reviewing and monitoring the external
auditors’ independence and objectivity
and the effectiveness of the audit process,
taking into consideration relevant UK
professional and regulatory requirements;
and
� developing and implementing a policy on
the engagement of the external auditors
to supply non-audit services, taking into
account relevant guidance regarding the
provision of non-audit services by the
external audit firm.
The Audit Committee is required to report
its findings to the Board, identifying any
matters in respect of which it considers that
action or improvement is needed, and make
recommendations as to the steps to be taken.
Composition
The members of the Audit Committee are:
Date of 
Name appointment Qualification
J Bloomer 18 Sept 2006 Chartered 
accountant
M Evans 1 Sept 2006 Actuary
J Davis 1 Feb 2008
Membership of the Committee is reviewed
by the Chairman of the Committee at regular
intervals and any recommendations for new
appointments are made to the Nomination
Committee for onward recommendation to
the Board.  Appointments are for a period of
three years and are extendable by no more
than two additional three year periods.  The
Committee comprises three independent
non-executive directors.  Two members
constitute a quorum.
The Audit Committee structure requires the
inclusion of one financially qualified member
(as recognised by the Consultative
Committee of Accountancy Bodies).
Currently the Audit Committee Chairman
fulfils this requirement.  All Audit Committee
members are expected to be financially
literate.
The Group provides an induction
programme for new Audit Committee
members and ongoing training to enable all
of the Committee members to carry out their
duties.  The induction programme covers the
role of the Audit Committee, its terms of
reference and expected time commitment by
members; and an overview of the Group’s
business, including the main business and
financial dynamics and risks.  New
Committee members also meet some of the
Group’s staff.  Ongoing training includes
attendance at formal conferences, internal
company seminars and briefings by external
advisors.
The Board expects the Audit Committee
members to have an understanding of:
� the principles of, contents of, and
developments in financial reporting
including the applicable accounting
standards and statements of
recommended practice;
� key aspects of the Group’s operations
including corporate policies, Group
financing, products and systems of
internal control;
� matters that influence or distort the
presentation of accounts and key figures;
� the principles of, and developments in,
company law, sector-specific laws and
other relevant corporate legislation;
� the role of internal and external auditing
and risk management;
� the regulatory framework for the Group’s
businesses; and
� environmental and social responsibility
best practices.
Meetings
The Audit Committee is required to meet at
least three times per year and has an agenda
linked to events in the Group’s financial
calendar.  The agenda is predominantly
cyclical and is therefore approved by the
Audit Committee Chairman on behalf of his
or her fellow members.  Each Audit
Committee member has the right to require
reports on matters of interest in addition to
the cyclical items.
The Audit Committee invites the Group
Chairman, Group Chief Executive, Group
Finance Director, Head of Internal Audit,
Group Compliance Director and senior
representatives of the external auditors to
attend all of its meetings in full, although it
reserves the right to request any of these
individuals to withdraw.  Other senior
management are invited to present such
reports as are required for the Committee to
discharge its duties.
Overview of the actions taken by 
the Audit Committee to discharge
its duties
Since 1 July 2008 the Audit Committee has:
� reviewed the financial statements in the
2008 reports and accounts and the
interim report issued in February 2009.
As part of this review the Committee
received a report from the external
auditors on their audit of the annual
reports and accounts and review of the
interim report;
� considered the output from the Group-
wide process used to identify, evaluate
and mitigate risks;
� reviewed the effectiveness of the Group’s
internal controls and disclosures made in
the annual report and accounts on this
matter;
� reviewed and agreed the scope of the
audit work to be undertaken by the
auditors;
� considered a report from the external
auditors on their observations of controls
across the Group;
� agreed the fees to be paid to the external
auditors for their audit of the 2009
accounts and interim report;
� reviewed its own effectiveness;
� undertaken an evaluation of the
performance of the Internal Audit
function;
� agreed a programme of work for the
Company’s Internal Audit function;
Audit Committee Report Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 27
� undertaken an evaluation of the
performance of the external auditors;
� received reports from the Head of
Internal Audit on the work undertaken
by Internal Audit and management
responses to proposals made in the audit
reports issued by the function during the
year; and
� received presentations on the Group’s
treasury and tax functions. 
External auditors
The Audit Committee is responsible for the
development, implementation and
monitoring of the Group’s policy on external
audit.  The policy assigns oversight
responsibility for monitoring the
independence, objectivity and compliance
with ethical and regulatory requirements to
the Audit Committee, and day to day
responsibility to the Group Finance Director.
The policy states that the external auditors
are jointly responsible to the Board and the
Audit Committee and that the Audit
Committee is the primary contact.
The Group’s policy on external audit sets out
the categories of non-audit services which the
external auditors will and will not be allowed
to provide to the Group, subject to de
minimis levels and Audit Committee
Chairman approval.
To fulfil its responsibility regarding the
independence of the external auditors, the
Audit Committee reviewed:
� the changes in key external audit staff in
the external auditors’ plan for the current
year;
� the arrangements for day to day
management of the audit relationship;
� the confirmation that no external audit
staff are employed by the Group;
� a report from the external auditors
describing their arrangements to identify,
report and manage any conflicts of
interest; and
� the overall extent of non-audit services
provided by the external auditors, in
addition to their case by case approval of
the position of non-audit services by the
external auditors.
To assess the effectiveness of the external
auditors, the Audit Committee reviewed:
� the external auditors’ fulfilment of the
agreed audit plan and variations from the
plan;
� the robustness and perceptiveness of the
auditors in their handling of the key
accounting and audit judgements; and
� the content of a report from the external
auditors on their observations of controls
across the Group.
As a consequence of its satisfaction with the
results of the activities outlined above, the
Audit Committee has recommended to the
Board that the external auditors are re-
appointed.
Internal Audit function
The Audit Committee is required to assist the
Board to fulfil its responsibilities relating to
the adequacy of the resourcing and plans of
the Internal Audit department.  To fulfil
these duties, the Committee reviewed:
� Internal Audit’s terms of reference,
reporting lines and access to the Audit
Committee and all members of the
Board;
� Internal Audit’s plans and its achievement
of the planned activity;
� the results of key audits and other
significant findings, the adequacy of
management’s response and the
timeliness of resolution;
� the statistics on staff numbers,
qualifications and experience and
timeliness of reporting; and
� the level and nature of non-audit activity
performed by Internal Audit.
The Group’s Whistleblowing Policy contains
arrangements for the Head of Internal Audit
to receive, in confidence, complaints on
accounting, risk issues, internal controls,
auditing issues and related matters for
reporting to the Audit Committee as
appropriate.
Overview
As a result of its work during the year, the
Audit Committee has concluded that it has
acted in accordance with its terms of
reference and has ensured the independence
and objectivity of the external auditors.
The Chairman of the Audit Committee will
be available at the Annual General Meeting
to answer any questions about the work of
the Committee.
Approval
This report was approved by the Audit
Committee and signed on its behalf by:
Michael Evans
Member of the Audit Committee
22 September 2009
Audit Committee Report Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 28
Introduction
This report has been prepared in accordance
with Schedule 8 to the Accounting
Regulations under the Companies Act 2006.
The report also meets the relevant
requirements of the Listing Rules of the
Financial Services Authority and describes
how the Board has applied the principles
relating to directors’ remuneration.  As
required by the Act, a resolution to approve
the report will be proposed at the Annual
General Meeting of the Company at which
the financial statements will be approved.
The Act requires the auditors to report to the
Company’s members on certain parts of the
directors’ remuneration report and to state
whether in their opinion those parts of the
report have been properly prepared in
accordance with the Companies Act 2006.
The report has therefore been divided into
separate sections for audited and unaudited
information.
Unaudited information
Remuneration Committee
This report deals with the remuneration
policies and the work of the Remuneration
Committee in the year ended 30 June 2009.
The Company has a Remuneration
Committee which is responsible for the
framework or broad policy for the fair
remuneration of the Executive Directors of
the Company and its subsidiaries as well as
their performance management.  These will
be determined with due regard to the
interests of the Company and the
Shareholders.  The Committee makes
recommendations to the Board.  No director
plays a part in any discussion about his or her
own remuneration. The Remuneration
Committee will meet at least twice per year
and is governed by formal Terms of
Reference. They are reviewed annually and
can be viewed at www.H-L.co.uk.
The members of the Committee throughout
the financial year and to the date of this
report were Jonathan Bloomer, Michael
Evans and Jonathan Davis who are
independent non-executive directors.  The
Committee is chaired by Jonathan Bloomer.
None of the Committee has any personal
financial interest (other than as shareholders),
conflicts of interests arising from cross-
directorships or day-to-day involvement in
running the business.  
In determining the directors’ remuneration
for the year, the Committee consulted Peter
Hargreaves (Chief Executive), Theresa Barry
(Group Marketing Director) and Stephen
Lansdown (Chairman) about its proposals
and they attend meetings at the invitation of
the Committee except when their own
remuneration is being discussed.  
The role of the Committee
The Committee’s purpose is to:
� determine and recommend to the Board
the remuneration policy for the
Chairman, executive directors of the
Company and of the subsidiary
companies;
� ensure the level and structure of
remuneration is designed to attract,
retain, and motivate the executive
directors needed to run the Company
and the Group; 
� and monitor the level and structure of
remuneration for senior management.
The performance measurement of the
executive directors and key members of
senior management and the determination of
their annual remuneration package are
undertaken by the Committee.  The
Committee also ensures that the
remuneration relationship between the
executive directors and senior executives of
the Company below this level is appropriate.
In particular, any exceptional remuneration
arrangements for senior executives are
advised to the Committee. 
Executive directors’ contracts
It is the Company’s policy that executive
directors should have contracts with an
indefinite term providing for a maximum of
one year’s notice.  All executive directors
currently have contracts which are subject to
one year’s notice by either party.  The
Company may at any time exercise its
discretion to pay the executives in lieu of the
notice period.  The details of the directors’
contracts are summarised in the table below:
Name of Contract Notice
director date period
P Hargreaves 5 Apr 2007 12 months
S Lansdown 5 Apr 2007 12 months
T Taylor 1 Nov 2008 12 months
Hargreaves Lansdown recognises that its
executive directors may be invited to become
non-executive directors of other companies.
Such non-executive duties can broaden
experience and knowledge which can benefit
the Company. Subject to approval by the
Board, executive directors are allowed to
accept non-executive appointments and
retain the fees received, provided that these
appointments are not likely to lead to
conflicts of interest. Peter Hargreaves
currently receives fees of £45,000 p.a. in
respect of his duties as non-executive
chairman of ITM Power plc. 
Executive directors’ contracts of service
which include details of remuneration will be
available for inspection at the Annual General
Meeting.
Remuneration policy for executive
directors of the Company and 
subsidiary companies
The remuneration policy of the Group is
designed to attract, motivate and retain
directors of the calibre needed to maintain
the Group’s position as a market leader and
to reward them for enhancing shareholder
value.  
The Committee believes that a significant
proportion of total remuneration should be
performance-related to closely align the
interests of shareholders and executive
directors of the Group.  Our policy is to pay
relatively low basic salaries but to give
executive directors and senior managers the
opportunity to earn large bonuses for
exceptional performance together with the
benefits of participation in share option
schemes. Executives are encouraged to
accumulate personal holdings in Hargreaves
Lansdown plc shares. 
Bonuses are based on achievements such as
delivering growth, managing risk, improving
customer service and satisfaction, and
achieving efficiencies, all of which contribute
directly to the value of the business.  By the
nature of our business, the Group’s profits
are quickly turned into cash, and the risk of
unexpected losses arising in the future from
unrealised or deferred liabilities is low.  As
long as the Remuneration Committee is
satisfied that the performance which
generates a bonus has been sustained, and the
expected profits and cash flows have already
materialised, it considers there is no
justification for deferring that bonus or
introducing a clawback provision.
An important corollorary of this policy is that
bonuses will be generous in years when the
Directors’ Remuneration Report Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 29
Group’s performance is good, but more
frugal if profitability or the growth in profit
deteriorates.  If the performance of the
business turns down, the directors and most
senior members of staff expect to experience
the biggest reductions in bonus, both in
monetary and percentage terms.  
There are five main elements of the
remuneration package for executive directors
and senior management:
� basic annual salary;
� annual bonus payments; 
� share option incentives;
� pension arrangements and;
� benefits-in-kind
Basic annual salary 
The policy for executive directors of the
Company and of the subsidiary companies is
that basic annual salary should provide
adequate but not generous remuneration.
An executive director’s basic salary is
reviewed annually by the Committee prior to
the beginning of each financial year and when
an individual changes position or
responsibility.  In deciding appropriate levels,
the Committee considers salaries throughout
the Group as a whole, survey data and
information provided by advisors and up-to-
date information on a comparator group of
companies in the financial sector.
Annual bonus payments
The directors’ service contracts provide that
the executives may be paid a discretionary
bonus for each financial year of the Company.
The Committee believes that any incentive
compensation awarded should be tied to the
interests of the Company’s shareholders.
Therefore in determining the size of the
annual bonus pot to be distributed, the
principal measure used is Earnings Per Share.
In determining the allocation of the bonuses,
regard is given to the performance of the
individual, the relative success of the different
parts of the business for which the executive
director is responsible, and the extent to
which the strategic objectives set by the
Board are being met.  
The Committee does not generally consider
it appropriate to set an upper limit on
discretionary awards.  At the time of the IPO,
a cap on the bonuses of Stephen Lansdown
and Peter Hargreaves of 100% of salary was
agreed. The level of the cap is inconsistent
with the remuneration policy being applied
to the other executive directors and the
Committee decided that henceforth the cap
should be increased to 300% of salary.
Annual bonus payments to the other
executive directors, management and staff are
not capped. All bonus payments are not
pensionable.
Share option incentives
The executive directors of the Company and
subsidiary companies may have options
granted to them under the terms of the
Executive Share Option Scheme.  Options
under this scheme may be granted to
employees and directors of the Group as
selected by the Remuneration Committee.
Under that scheme, options are allocated to
qualifying employees and directors by
reference to individual past performance and
therefore the exercise of options granted
under the Executive Scheme are not
dependent upon performance criteria.    
The executive directors of the Company and
subsidiary companies are entitled to
participate in the SAYE share option scheme
on the same terms as all other employees.
They are also entitled to participate in the
Share Incentive Plan (SIP) on the same terms
as all other employees.   
The exercise price of the options granted
under the above schemes is equal to the
market value of the Company’s shares at the
time when the options are granted.  Benefits
received under share incentive schemes are
not pensionable.     
At the 2009 Annual General Meeting,
shareholders will be asked to approve a new
Executive Joint Share Ownership Plan
(JSOP).  Similar schemes are often referred
to as Share Appreciation Rights, the key
feature being that Directors and other
executives pay for their award at the outset
but only benefit if there is further growth in
the value of the Company’s share price,
subject to any conditions attached to the
award.  The Remuneration Committee is of
the view that this new scheme links rewards,
performance and the creation of value for
shareholders in an effective way, although
we also plan to retain the existing option
schemes for use when appropriate.  Our
Employee Benefit Trust (EBT) is well
funded and holds sufficient shares to satisfy
all outstanding options under all current
share schemes.
Pension arrangements
No directors or staff participate in a 
defined benefit pension scheme.  On 1 July
2008, the Group replaced its defined
contribution personal pension scheme 
with its own Group Self Invested Personal
Pension (the “GSIPP”).  The new scheme 
is non-contributory and allows staff to take
more control of their pension planning.
The Company contributes 4% of salary to
the scheme: bonuses and other benefits are
not pensionable.  Employees wishing to
make personal contributions to the GSIPP
can do so via ‘salary exchange’ ensuring 
that they benefit from maximum, 
immediate relief from income tax and
National Insurance Contributions (NIC).
Peter Hargreaves and Stephen Lansdown 
do not participate in the GSIPP .
Benefits-in-kind
The executive directors are entitled to life
assurance cover of three times the executive's
salary and, subject to the rules of the scheme,
permanent health insurance.  The executive
directors may also receive certain benefits-in-
kind.  
Outcome of review by Remuneration
Committee 
The Committee reviewed the remuneration
packages in the light of the Group’s
exceptional performance in extremely
difficult trading circumstances. Full year
profits were ahead of the market analysts’
consensus, costs have been controlled,
earnings per share have improved and
dividends have increased.  For a financial
services company in the face of the economic
downturn, these represent excellent results.
Directors’ Remuneration Report Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 30
Performance graph 
The graph opposite shows the Company’s
performance, measured by Total Shareholder
Return (TSR) i.e capital growth and
dividends paid, compared with the
performance of the FTSE 350 General
Financial Index during the period since
flotation.  
As the Company was not listed on a stock
exchange prior to May 2007, a comparison of
TSR prior to 15 May 2007 has not been
possible due to the absence of a quoted share
price.  
The Company’s performance measured using
underlying adjusted earnings per share (EPS)
has also been compared against the
performance of the FTSE 350 General
Financial Index (opposite).
Basic salaries were reviewed during the year
with no increases taking effect, with the
exception of Tracey Taylor who became
Group Finance Director during the year.
The Committee agreed that Peter
Hargreaves, Stephen Lansdown and Tracey
Taylor should receive bonuses of £600,000,
£350,000 and £250,000 respectively. The
bonuses paid to executive directors of the
Company and of the subsidiary companies
varied between half and four times salary.
Non-executive directors
All non-executive directors have specific
terms of engagement, which are available for
inspection, and their remuneration is
determined by the Board within the limits set
by the Articles of Association and based on
independent surveys of fees paid to non-
executive directors of similar companies.  
Each non-executive director is a member of
the Remuneration Committee, Nomination
Committee and Audit Committee, and the
basic fee of £30,000 to £35,000 p.a. paid
(depending on experience) includes a fee for
membership of each committee.  Additional
fees of £15,000 p.a. are paid to Jonathan
Bloomer for chairmanship of the three
committees.  Non-executive directors cannot
participate in any of the Company’s share
option schemes and are not eligible to join
the Company’s pension scheme.
Appointments are for a fixed term of three
years from the commencement date unless
terminated by either party on three months'
0
20
40
£
60
80
100
120
140
160
Date
Jun 2007
Jul 2007
Aug 2007
Sep 2007
Oct 2007
Nov 2007
Dec 2007
Jan 2008
Feb 2008
Mar 2008
Apr 2008
May 2008
Jun 2008
Aug 2008
Sep 2008
Oct 2008
Nov 2008
Dec 2008
Jan 2009
Feb 2009
Mar 2009
Apr 2009
May 2009
Jun 2009
Jul 2009
Aug 2009
Sep 2009
Total Shareholder Return
HL TSR
FTSE 350 General Financial
This graph shows the value of £100 invested in Hargreaves Lansdown plc shares on 15 May 2007 (admission to the
Official List) compared to £100 invested in the FTSE 350 General Financial sector.
0
2
4
6
8
10
12
2003
EPS (pence)
2004 2005 2006 2007 2008 2009
Growth in EPS
HL Underlying EPS
FTSE 350 General Financial
written notice or by the Company at any time
with immediate effect on payment in lieu of
notice.  Both Jonathan Bloomer and Michael
Evans have agreed to continue as non-
executive directors for a further three years
after expiry of their initial three year term in
September 2009.  In the case of Michael
Evans he has agreed to become non-
executive chairman with effect from 1
December 2009 subject to approval at this
year’s Annual General Meeting and the
Committee has agreed an increase to the fees
payable to him for this role to £90,000 p.a.
with effect from 1 December 2009.  
Jonathan Bloomer’s fees will be increased to
£55,000 p.a. in total with effect from 1
September 2009.  On the basis that these
appointments are confirmed at the Annual
General Meeting, the company will actively
seek a further non-executive director to
comply with the provisions of the Combined
Code.  
Non-executive directors are entitled to
reimbursement of all reasonable and properly
documented travel, hotel and other
incidental expenses incurred in the
performance of their duties and the Company
maintains appropriate directors' and officers'
liability insurance for their benefit.
Directors’ Remuneration Report Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 31
Audited information
The following information is provided in respect of directors who served during the year ended 30 June 2009: 
Aggregate directors’ remuneration 2009 2008
£’000 £’000
The total amounts for directors’ remuneration were as follows:
Pension contributions 22 218
Emoluments 2,124 1,613
Gains on exercise of share options 504 2,540
Share-based payments 22
2,652 4,373
Directors’ pension contributions
2 directors were a member of a money purchase scheme during 2009 (2008: 1).  Contributions paid by the Company were: 
2009 2008
Name of director ££
Current Executive directors
T P Taylor 18,567 -
Former Executive directors
M J Mulligan* 3,333 218,320
21,900 218,320
* In 2008, the Company pension contribution includes £190,000 of bonus sacrifice and the associated £24,320 employer’s national
insurance saving paid as pension contribution.
Directors’ emoluments
Fees/Basic Benefits Performance
salary in kind bonuses 2009 2008
Name of director £ £ £ Total
1
£ Total
2
£
Current Executive directors
P K Hargreaves 350,000 66,953 600,000 1,016,953 746,594
S P Lansdown 275,000 8,350 350,000 633,350 559,045
T P Taylor 127,254 1,820 145,833 274,907 -
752,254 77,123 1,095,833 1,925,210 1,305,639
Former Executive directors
M J Mulligan 83,333 - - 83,333 210,000
83,333 - - 83,333 210,000
Non-executive directors
J Bloomer 50,000 - - 50,000 50,000
M Evans 35,000 - - 35,000 35,000
J Davis 30,000 - - 30,000 12,500
115,000 - - 115,000 97,500
Aggregate emoluments 950,587 77,123 1,095,833 2,123,543 1,613,139
1
Emoluments for Tracey Taylor are shown for the 7 months following appointment to the Board and include annual performance bonus
accrued for the period.  Emoluments for Martin Mulligan are included up to date of resignation.
2
Excludes bonus sacrifice amounts which are shown as an employer’s pension contribution in the previous table.
Directors’ Remuneration Report Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 32
Directors’ share options
All of the executive directors of the Group as
at 8 November 2006, with the exception of
Peter Hargreaves and Stephen Lansdown,
were each awarded 12,650 Ordinary Shares
on 8 November 2006 under the terms of the
HMRC approved Share Incentive Plan (SIP).
At the award date the HMRC approved
market value was £0.24 per share.  These
shares are subject to a three year retention
period and are held by the trustee of the SIP,
Hargreaves Lansdown Trustee Company
Limited.  The figures shown below are
exclusive of such awards.  Options granted
under the share option and share incentive
schemes are not subject to performance
criteria.  
The closing market price of the ordinary 0.4
pence shares at 30 June 2009 was £2.05 and
the range during the year to 30 June 2009
was £1.32 to £2.27.
Aggregate emoluments disclosed above do
not include any amounts for the value of
options to acquire ordinary shares in the
Company granted to or held by the directors.
During the year, the following executive
directors acquired Ordinary Shares in the
Company from the EBT pursuant to Share
Options under the Executive Option Scheme
(Unapproved), and the all-employee SAYE
scheme on the following terms:
The interests of the directors who served during the year in options to acquire shares in Hargreaves Lansdown plc are as follows:
Approval
This report was approved by the Board of directors on 22 September 2009 and signed on its behalf by:
Michael Evans
Member of the Remuneration Committee
22 September 2009
Name of director Number of Exercise Date of Closing market Gains on Gains on
Ordinary Shares Price exercise price at exercise exercise
Acquired exercise date 2009 2008
££
Current Executive directors
T P Taylor 108,350 £0.04 1 August 2008 £1.63 172,671 -
220,000 £0.64 10 March 2009 £2.02 303,300 -
Former Executive directors
M J Mulligan 1,375,000 £0.55 7 September 2007 £2.10 - 2,137,500
275,000 £0.64 7 September 2007 £2.10 - 402,500
17,325 £0.04 1 August 2008 £1.63 27,610 -
503,581 2,540,000
At At Date from
Name of Type of 1 July 30 June Exercise Expiration which
director scheme 2008 Exercised Granted Lapsed 2009 Price Date exercisable
T P Taylor Exec Scheme 220,000 220,000 - - - £0.64 Feb 2016 Feb 2006
Exec Scheme - - 15,355 - 15,355 £1.95 Mar 2019 Mar 2014
SAYE 108,350 108,350 - - - £0.04 Mar 2009 Aug 2008
SAYE 22,550 - - - 22,550 £0.64 Nov 2012 May 2012
SAYE - - 2,373 - 2,373 £1.75 Mar 2014 Oct 2013
M J Mulligan SAYE 17,325 17,325 - - - £0.04 Mar 2009 Aug 2008
SAYE 26,400 - - 26,400 - £0.55 Nov 2012 May 2012
Directors’ Remuneration Report Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 33
Statement of Directors’ Responsibilities
Company law requires the directors to prepare financial statements for
each financial year.  Under that law the directors are required to
prepare the Group financial statements in accordance with International
Financial Reporting Standards (IFRSs) as adopted by the European
Union and Article 4 of the IAS Regulation and have also chosen to
prepare the parent company financial statements under IFRSs as
adopted by the EU.  Under company law the directors must not
approve the accounts unless they are satisfied that they give a true and
fair view of the state of affairs of the company and of the profit or loss
of the company for that period.  In preparing these financial statements,
International Accounting Standard 1 requires that directors:
� properly select and apply accounting policies;
� present information, including accounting policies, in a manner
that provides relevant, reliable, comparable and understandable
information; 
� provide additional disclosures when compliance with the specific
requirements in IFRSs are insufficient to enable users to
understand the impact of particular transactions, other events and
conditions on the entity's financial position and financial
performance; and
� make an assessment of the company's ability to continue as a
going concern.
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the company’s
transactions and disclose with reasonable accuracy at any time the
financial position of the company and enable them to ensure that the
financial statements comply with the Companies Act 2006.  They are
also responsible for safeguarding the assets of the company and hence
for taking reasonable steps for the prevention and detection of fraud
and other irregularities.
The directors are responsible for the maintenance and integrity of the
corporate and financial information included on the company’s
website.  Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
Responsibility statement
We confirm that to the best of our knowledge:
� the financial statements, prepared in accordance with
International Financial Reporting Standards, give a true and fair
view of the assets, liabilities, financial position and profit or loss of
the company and the undertakings included in the consolidation
taken as a whole; and
� the management report, which is incorporated into the directors'
report, includes a fair review of the development and performance
of the business and the position of the company and the
undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and uncertainties
that they face.
By order of the Board 
Stephen Lansdown           Tracey Taylor
Chairman Group Finance Director
22 September 2009 22 September 2009
The directors are responsible for preparing the Annual Report and the ﬁnancial statements in accordance with
applicable law and regulations. Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 34
Independent Auditors’ Report to the Members of Hargreaves Lansdown plc
We have audited the financial statements of Hargreaves Lansdown plc
for the year ended 30 June 2009 which comprise the Consolidated
Income Statement, the Consolidated and Parent Company
Statements of Recognised Income and Expense, the Consolidated
and Parent Company Balance Sheets, the Consolidated and Parent
Company Cash Flow Statements and the related notes 1 to 35.  The
financial reporting framework that has been applied in their
preparation is applicable law and International Financial Reporting
Standards (IFRSs) as adopted by the European Union.
This report is made solely to the company’s members, as a body, in
accordance with sections 495, 496 and 497 of the Companies Act
2006.  Our audit work has been undertaken so that we might state to
the company’s members those matters we are required to state to
them in an auditors’ report and for no other purpose.  To the fullest
extent permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company’s members as a
body, for our audit work, for this report, or for the opinions we have
formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities Statement,
the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit the financial statements in accordance
with applicable law and International Standards on Auditing (UK and
Ireland).  Those standards require us to comply with the Auditing
Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give reasonable
assurance that the financial statements are free from material
misstatement, whether caused by fraud or error.  This includes an
assessment of: whether the accounting policies are appropriate to the
Group’s and the parent company’s circumstances and have been
consistently applied and adequately disclosed; the reasonableness of
significant accounting estimates made by the directors; and the
overall presentation of the financial statements.
Opinion on financial statements
In our opinion:
� the financial statements give a true and fair view of the state of the
Group’s and of the parent company’s affairs as at 30 June 2009
and of the Group’s profit for the year then ended;
� the financial statements have been properly prepared in
accordance with IFRSs as adopted by the European Union; and
� the financial statements have been prepared in accordance with
the requirements of the Companies Act 2006 and, as regards the
Group financial statements, Article 4 of the IAS Regulation.
Opinion on other matters prescribed by the 
Companies Act 2006
In our opinion:
� the part of the Directors’ Remuneration Report to be audited has
been properly prepared in accordance with the Companies Act
2006; and
� the information given in the Directors’ Report for the financial
year for which the financial statements are prepared is consistent
with the financial statements.
Matters on which we are required to report 
by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you if,
in our opinion:
� adequate accounting records have not been kept by the parent
company, or returns adequate for our audit have not been
received from branches not visited by us; or
� the parent company financial statements and the part of the
Directors’ Remuneration Report to be audited are not in
agreement with the accounting records and returns; or
� certain disclosures of directors’ remuneration specified by law are
not made; or
� we have not received all the information and explanations we
require for our audit.
Under the Listing Rules we are required to review:
� the directors’ statement contained within the Directors’ Report in
relation to going concern; and
� the part of the Corporate Governance Statement relating to the
company’s compliance with the nine provisions of the June 2008
Combined Code specified for our review.
Mark McQueen (Senior Statutory Auditor)
for and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditors Bristol, 
United Kingdom
22 September 2009 Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 35
Consolidated Income Statement
Year ended Year ended
30 June 30 June
2009 2008
Note £’000 £’000
Revenue 4 132,845 120,332
Total operating income 132,845 120,332
Administrative expenses (63,038) (62,553)
Operating profit 69,807 57,779
Investment revenue 8 2,534 3,113
Other gains and losses 9 740 53
Profit before tax 73,081 60,945
Tax 10 (20,968) (18,551)
Profit for the year 6 52,113 42,394
Attributable to:
Equity holders of the Company 52,123 42,401
Minority interest (10) (7)
52,113 42,394
Dividend per share (pence) ** 11
2009 Interim dividend 3.065 3.065
2008 Final dividend 2.420 -
2008 Special dividend 2.324 -
Total dividend per share 7.809 3.065
Earnings per share
Basic earnings per share * (pence) 12 11.2 9.1
Diluted earnings per share * (pence) 12 11.1 9.0
All income, profits and earnings are in respect of continuing operations.
* Underlying earnings per share, excluding the impact of investment gains is shown in note 12.
** After the balance sheet date, the directors declared a final dividend of 4.229 pence per share and a special dividend of 2.807 pence per share
payable on 30 September 2009 to shareholders on the register on 11 September 2009. Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 36
Consolidated Statement of Recognised Income and Expense
Group Company
Year ended Year ended Year ended Year ended
30 June 30 June 30 June 30 June
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Profit for the financial year 52,113 42,394 46,150 37,755
Decrease in fair value of available-for-sale investments (77) - (77) -
Net expense recognised directly in equity (77) - (77) -
Total recognised income and expense for the financial year 52,036 42,394 46,073 37,755 Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 37
Consolidated and Company Balance Sheets
Group Company
At 30 June At 30 June At 30 June At 30 June
2009 2008 2009 2008
Note £’000 £’000 £’000 £’000
Assets:
Non-current assets
Goodwill 13 1,333 1,333 - -
Other intangible assets 14 237 291 - -
Property, plant and equipment 15 1,791 2,142 26 176
Investments 17 - - 2,152 2,152
Deferred tax assets 19 1,826 3,353 77 53
5,187 7,119 2,255 2,381
Current assets
Trade and other receivables 18 75,417 76,602 428 323
Cash and cash equivalents 18 87,416 68,241 34,795 28,674
Investments 17 2,382 1,142 1,402 478
Current tax assets 21 25 42 32
165,236 146,010 36,667 29,507
Total assets 170,423 153,129 38,922 31,888
Liabilities:
Current liabilities
Trade and other payables 20 75,992 72,108 1,391 4,202
Current tax liabilities 8,997 10,266 - -
84,989 82,374 1,391 4,202
Net current assets 80,247 63,636 35,276 25,305
Non-current liabilities
Provisions 21 784 444 - -
784 444 - -
Total liabilities 85,773 82,818 1,391 4,202
Net assets 84,650 70,311 37,531 27,686
Equity:
Share capital 22 1,897 1,897 1,897 1,897
Share premium account 23 8 8 8 8
Investment revaluation reserve 24 (77) - (77) -
Capital redemption reserve 25 12 12 12 12
Shares held by Employee Benefit Trust reserve 26 (10,965) (9,739) - -
EBT reserve 27 11,118 12,053 - -
Share option reserve 28 7,577 6,885 - -
Retained earnings 29 75,150 59,255 35,691 25,769
Total equity, attributable to equity shareholders of the parent 84,720 70,371 37,531 27,686
Minority interest (70) (60) - -
Total equity 84,650 70,311 37,531 27,686
The financial statements were approved by the Board of directors on 22 September 2009 and signed on its behalf by:
Stephen Lansdown Tracey Taylor
Chairman Group Finance Director Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 38
Statement of Cash Flows
Group Company
Year ended Year ended Year ended Year ended
30 June 30 June 30 June 30 June
2009 2008 2009 2008
Note £’000 £’000 £’000 £’000
Net cash from operating activities, after tax 30 56,951 34,670 (3,757) 3,993
Investing activities
Interest received 2,438 3,004 609 440
Dividends received from investments 96 109 45,750 38,300
Proceeds on disposal of available-for-sale investments 748 27 748 -
Purchases of property, plant and equipment (1,007) (950) - 2
Purchase of intangible fixed assets (345) (381) - -
Acquisition of available-for-sale investments (1,317) - (1,001) -
Net cash from investing activities 613 1,809 46,106 38,742
Financing activities
Purchases of own shares in EBT (3,832) (3,101) - -
Proceeds on sale of own shares in EBT 1,671 935 - -
Dividends paid (36,228) (14,164) (36,228) (14,164)
Net cash used in financing activities (38,389) (16,330) (36,228) (14,164)
Net increase in cash and cash equivalents 19,175 20,149 6,121 28,571
Cash and cash equivalents at beginning of year 68,241 48,092 28,674 103
Cash and cash equivalents at end of year 87,416 68,241 34,795 28,674 Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 39
Notes to the Financial Statements
1. General information
Hargreaves Lansdown plc (the “Company”) is a company incorporated in the United Kingdom under the Companies Act 2006 whose shares
are publicly traded on the London Stock Exchange. The address of the registered office is Kendal House, 4 Brighton Mews, Clifton, Bristol,
BS8 2NX, United Kingdom. The nature of the Group’s operations and its principal activities are set out in the Operating and Financial Review. 
These financial statements are presented in pounds sterling which is the currency of the primary economic environment in which the Group
operates. 
Basis of preparation
The consolidated financial statements of Hargreaves Lansdown plc have been prepared in accordance with International Financial Reporting
Standards adopted by the International Accounting Standards Board (“IASB”) and interpretations issued by the International Financial
Reporting Interpretations Committee of the IASB (together “IFRS”) as endorsed by the European Union. The Company's financial
statements have been prepared on the same basis and as permitted by Section 408 of the Companies Act 2006, no income statement is
presented for the Company.  The Company’s profit after tax for the year was £46,150,000 (2008: £37,755,000).
At the date of the authorisation of the financial statements the following standards and interpretations, which have not been applied in the
financial statements, were in issue but not yet effective:
IAS 1 Revised - Presentation of financial statements 
IFRS 2 Amendment - Share-based payments
IFRS 3 Business combinations 
IFRS 5 Amendment - Non-current assets held for sale and discontinued operations
IFRS 7 Improving disclosures about financial instruments
IFRS 8 Operating segments
IAS 7 Amendment - Statement of cash flows
IAS 16 Amendment - Property, plant and equipment
IAS 17 Amendment - Leases
IAS 27 Amendment - Consolidated and separate financial statements
IAS 32 Amendment - Financial instruments: Presentation
IAS 36 Amendment - Impairment of assets
IAS 38 Amendment - Intangible assets
IAS 39 Amendment - Financial instruments: Recognition and measurement
IFRIC 17 Distribution of non cash assets to owners 
The full impact of these pronouncements is being assessed by the Group.  However, the initial view is that the directors anticipate that the
future adoption of those standards, interpretations and amendments listed above will not have a material impact on the Group’s results
reported within the financial statements other than requiring additional disclosure or alternative presentation.
The financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments. The
principal accounting policies adopted are set out below.
2. Significant accounting policies
Accounting policies as shown below have been consistently applied throughout the current and prior financial year.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its
subsidiaries) made up to 30 June 2009.  Control is achieved where the Company has the power to govern the financial and operating policies
of an investee entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of
acquisition or up to the effective date of disposal, as appropriate.   
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those
used by the Group.  All intra-group transactions, balances, income and expenses are eliminated on consolidation.
The Group and Company financial statements are prepared on a going concern basis as discussed on pages 19 and 25. Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 40
Notes to the Financial Statements
2. Significant accounting policies (continued) 
Business combinations 
The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair
values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for
control of the acquiree, plus any costs directly attributable to the business combination. The acquiree’s identifiable assets, liabilities and
contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the acquisition date. 
Any gains or losses on sale of the Company’s own shares held by the Hargreaves Lansdown Employee Benefit Trust (“EBT”) are credited
directly to the EBT reserve and are treated as undistributable profits.
Non-current assets held for sale
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell.
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction rather
than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is
available for immediate sale in its present condition. Management must be committed to the sale which should be expected to qualify for
recognition as a completed sale within one year from the date of classification.
Goodwill
Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group’s interest in the fair value of the identifiable
assets and liabilities of a subsidiary, associate or jointly controlled entity at the date of acquisition. Goodwill is initially recognised as an asset at
cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill which is recognised as an asset is reviewed for
impairment at least annually. Any impairment is recognised immediately in profit or loss and is not subsequently reversed.
On disposal of a subsidiary, associate or jointly controlled entity, the attributable amount of goodwill is included in the determination of the
profit or loss on disposal.
Goodwill arising on acquisitions before the date of transition to IFRS on 1 July 2005 has been retained at the previous UK GAAP amounts
subject to being tested for impairment at that date. Goodwill written off to reserves under UK GAAP prior to 30 June 1997 has not been
reinstated and is not included in determining any subsequent profit or loss on disposal.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the
normal course of business, net of discounts, VAT and other sales-related taxes. Fund based commissions are recognised on an accruals basis
calculated according to the level of assets under the administration, or agency, of the Group.  Initial commissions are deemed to be earned at
the policy inception date, except in the case of the Group’s stockbroking and unit trust management subsidiary undertakings where all income
earned on securities transactions entered into on behalf of clients are recorded in the accounts on the date of the transaction.
Where commission is received on an indemnity basis, a provision is made for clawbacks which would be due if the policy lapses during the
indemnity period.   
Interest income is accrued on a time basis, using the effective interest rate method.
Dividend income from investments is recognised when the shareholders’ rights to receive payment have been established.
Operating profit
Operating profit is stated before investment revenue and finance costs.
Retirement benefit costs 
The Group operates a group self invested personal pension plan for staff.  Payments to the defined contribution retirement benefit scheme are
charged as an expense as they fall due.
Bonuses payable to employees
The Group recognises a liability and an expense for staff bonuses where contractually obliged or where there is a past practice.  
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be required
to settle that obligation. Provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation at the
balance sheet date, and are discounted to present value where the effect is material. 
Provisions are recognised for future committed property lease payments when the group receives no benefit from the property through
continuing usage and future receipts from any sub-letting arrangements are not in excess of the group’s future committed payments. Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 41
2. Significant accounting policies (continued)
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.  The tax currently payable is based on taxable profit for the
year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable
or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated
using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet
liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to
the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets
and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition
(other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, except where the
Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date.  Deferred tax assets are recognised to the extent that it is
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the year when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred
tax is also dealt with in equity.  Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its
current tax assets and liabilities on a net basis.
Share-based payments
The Group has applied the requirements of IFRS 2 Share-based Payments to all grants of equity instruments after 7 November 2002 that
were unvested at 1 July 2005.  
The Group issues equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair value
(excluding the effect of non market-based vesting conditions) at the date of grant. The fair value determined at the grant date of the equity-
settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of shares that will
eventually vest and adjusted for the effect of non market-based vesting conditions. Fair value is measured by use of the Black Scholes model.
The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise
restrictions, and behavioural considerations.  Prior to 15 May 2007 the Company’s shares were not listed on a stock exchange and therefore,
in the absence of a readily available market price for the shares, the share price was based on the market value agreed with HM Revenue &
Customs and share price volatility was estimated as the average of the volatility applying to a comparable group of listed companies.  
Property, plant and equipment
Plant and equipment are stated at cost less accumulated depreciation and any recognised impairment loss.  Depreciation is provided, where
material, on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual value, of each asset evenly using
a straight-line method over its estimated useful life as follows:
Fixtures, fittings, plant and equipment:
Leasehold property tenants’ fixtures over the life of the lease
Office equipment over 10 years
Computer equipment and software over 3 to 4 years
Motor vehicles over 4 years
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate that the carrying
value may not be recoverable.  The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in income.
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 42
2. Significant accounting policies (continued)
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
All other leases are classified as operating leases.  Rentals payable under operating leases are charged to income on a straight-line basis over the
term of the relevant lease.  Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight-line
basis over the lease term.
Intangible assets excluding goodwill
Other intangible assets comprise computer software which is stated at cost less amortisation and any recognised impairment loss. Amortisation
is provided, where material, on all intangible fixed assets excluding goodwill at rates calculated to write off the cost or valuation, less estimated
residual value, of each asset evenly using a straight-line method over its estimated useful life as follows:
Computer software over 3 to 4 years
The carrying values of computer software are reviewed for impairment when events or changes in circumstances indicate that the carrying
value may not be recoverable.  The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in income.
Website development design and content development costs are capitalised only to the extent that they lead to the creation of an enduring
asset, which delivers benefits at least as great as the amount capitalised.
Impairment of tangible and intangible assets excluding goodwill
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in
order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other
assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher
of fair value less costs to sell and value in use.  An intangible asset with an indefinite useful life is tested for impairment annually and whenever
there is an indication that the asset may be impaired.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its
recoverable amount. An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in
which case the impairment loss is treated as a revaluation decrease.
Dividend recognition
Dividend distributions to the Company’s shareholders are recognised in the accounting period in which the dividends are declared and paid,
or if earlier, in the accounting period when the dividend is approved by the Company’s shareholders at the Annual General Meeting.
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes a party to the contractual
provisions of the instrument. 
Trade receivables
Trade 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, certain balances with clients,
Stock Exchange member firms and other counterparties are included as debtors.
Investments
Investments are recognised and derecognised on a trade date where a purchase or sale of an investment is under a contract whose terms require
delivery of the investment within the timeframe established by the market concerned, and are initially measured at cost, including transaction costs.
The Group’s available-for-sale investments have been included at fair value where a fair value can be reliably calculated, with the revaluation
gains and losses reflected in the investment revaluation reserve, as shown in note 24, 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 where the directors believe that cost is not materially different to fair value, with a fair value
adjustment recognised upon disposal of the investment. 
Investments which are designated as being held at fair value through profit or loss are carried at fair value, being the quoted market price of
the listed investment, with any gain or loss reported within the income statement.  An investment is classified in this category if it is held
principally for the purpose of selling in the short term.
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 43
2. Significant accounting policies (continued) 
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that are readily
convertible to a known amount of cash and are subject to an insignificant risk of changes in value.  Included within cash balances are amounts
held on client settlement accounts as shown in note 18.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity
instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities.
Trade payables
Trade payables are measured at fair value which is equivalent to amortised cost.  In accordance with market practice, certain balances with
clients, Stock Exchange member firms and other counterparties are included as creditors.
3. Key sources of judgements and estimation uncertainty
The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amount of
revenues, expenses, assets and liabilities and the disclosure of contingent liabilities. If in the future such estimates and assumptions, which are
based on management’s best judgement at the date of preparation of the financial statements, deviate from actual circumstances, the original
estimates and assumptions will be modified as appropriate in the period in which the circumstances change. The areas where a higher degree
of judgement or complexity arise, or areas where assumptions and estimates are significant to the consolidated financial statements, are
discussed below.
Share based payments
In determining the fair value of equity settled share based awards and the related charge to the income statement, the Group makes
assumptions about the future events and market conditions.  In particular, judgement must be formed as to the likely number of shares that
will vest, and the fair value of each award granted.  The fair value is determined using a valuation model which is dependent on future
estimates, including the Group’s future dividend policy, the timing with which the options will be exercised and the future volatility in the
price of the Group’s shares.  Different assumptions about these factors to those made by the Group could materially affect the reported value
of share based payments.
Indemnity provision
The indemnity provision represents management’s best estimate of the Group’s liability to policy lapses resulting in indemnity commission
claw-backs.  The calculation is based on the volume of indemnified commission and on past experience of policy cancellation. 
Staff costs
Included in staff costs is an estimate of the future liability for bonuses and other employee incentive schemes which have been earned but not
paid. 
4. Revenue
Revenue represents commission receivable from financial services provided to clients, interest on settlement accounts and management fees
charged to clients.  It relates to services provided in the UK and is stated net of value added tax.  An analysis of the Group’s revenue is as
follows:
Year ended Year ended
30 June 30 June
2009 2008
Revenue from services: £’000 £’000
Fees and commission income 99,578 102,277
Interest and similar income 31,142 16,710
Subscriptions and sundry charges 2,125 1,345
Total operating income 132,845 120,332
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 44
5. Business and geographical segments
A business segment is a group of assets and operations engaged in providing services that are subject to risks and returns that are different
from those of other business segments. The Group is currently organised into different operating divisions, however the nature of the services
provided, the regulatory environment, the customer base and distribution channels for each division are the same so that for the purposes of
IAS 14 Segment Reporting, the consolidated entity operates in one business segment. The principal activity of the Group is the provision of
investment administration and advisory services.  As the Group only operates in one business segment, no additional business segmental
analysis has been shown.
All business operations are located within the UK and therefore the Group operates in a single geographical segment.
6. Profit for the year
Profit for the year has been arrived at after charging:
Year ended Year ended
30 June 30 June
2009 2008
£’000 £’000
Depreciation of owned plant and equipment 1,350 1,058
Amortisation of other intangible assets 399 171
Operating lease rentals payable - property 968 810
Staff costs (see note 7) 37,244 36,518
Auditors’ remuneration
The analysis of auditors' remuneration is as follows: 
Year ended Year ended
30 June 30 June
2009 2008
£’000 £’000
Audit fees: fees payable for the audit of the Company’s annual accounts 5 6
Audit fees: fees payable for the audit of the Company’s subsidiaries pursuant to legislation 79 78
Audit fees: fees payable for the audit of the Company’s half yearly financial report 10 10
Audit fees: other verification work 6-
Fees payable to the Company’s auditors and their associates for other services to the Group:
Tax advisory services 211
Total non-audit fees 211
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 45
7. Staff costs
The average number of employees of the Group (including executive directors) was:
The Group aims to attract, motivate and retain high calibre employees by rewarding them with competitive salary and benefit packages, which
may be linked to the creation of long-term shareholder value. Salary ranges are established by reference to those prevailing in the employment
market generally for employees of comparable status, responsibility and skills. All employees are eligible to be considered for an annual
discretionary bonus. In addition to cash bonuses, the Group operates various share based remuneration schemes as described in note 32.
Year ended Year ended
30 June 30 June
2009 2008
No. No.
Operating and support functions 447 479
Administrative functions 160 178
607 657
Of which the following number were employed by the parent company:
Administrative functions 33
Year ended Year ended
30 June 30 June
2009 2008
Their aggregate remuneration comprised: £’000 £’000
Wages and salaries 31,337 31,802
Social security costs 3,477 3,651
Share based payments expense 184 205
Other pension costs 2,246 860
37,244 36,518
8. Investment revenue
Year ended Year ended
30 June 30 June
2009 2008
£’000 £’000
Interest on bank deposits 2,438 3,004
Dividends from equity investment 96 109
2,534 3,113
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 46
The gain on disposal of investment represents further consideration received on completion of earnout clauses following the sale of an
investment during a previous financial year.
Factors affecting tax charge for the year
It is expected that the ongoing effective tax rate will trend to a rate approximating to the standard UK corporation tax rate (28%) in the
medium term.   A deferred tax asset in respect of future share option deductions has been recognised based on the Company’s share price as at
30 June 2009.  
Corporation tax is calculated at 28% of the estimated assessable profit for the year to 30 June 2009.
In addition to the amount charged to the income statement, certain tax amounts have been charged or credited directly to equity as follows:
£’000 £’000
Deferred tax relating to share based payments (note 28) 1,821 1,220
Current tax relief on exercise of share options (note 28) (2,329) (818)
(508) 402
9. Other gains and losses
Year ended Year ended
30 June 30 June
2009 2008
£’000 £’000
Profit on part disposal of subsidiary undertaking -53
Gain on disposal of investments 740 -
740 53
10. Tax
Year ended Year ended
30 June 30 June
2009 2008
£’000 £’000
Current tax 21,262 18,146
Deferred tax (note 19) (294) 405
20,968 18,551
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 47
10. Tax (continued)
Factors affecting future tax charge
Any increase or decrease to the Company’s share price will impact the amount of tax deduction available in future years on the value of shares
acquired by staff under share incentive schemes.  
The charge for the year can be reconciled to the profit per the income statement as follows:
After the balance sheet date, the directors declared a second interim (final) ordinary dividend of 4.229 pence per share and a special dividend
of 2.807 pence per share payable on 30 September 2009 to shareholders on the register on 11 September 2009.  Dividends are required to be
recognised in the financial statements when paid, and accordingly the proposed dividends amounts are not recognised in these financial
statements, but will be included in the 2010 financial statements as follows:
11. Dividends
Year ended Year ended
30 June 30 June
2009 2008
£’000 £’000
Profit before tax from continuing operations   73,081 60,945
Theoretical tax charge 20,463 18,030
- at the UK corporation tax rate of 30%, 
reducing to 
28% from 
28% 1 April
Items not allowable for tax 18 157
Effect of adjustments relating to prior years 452 323
Utilisation of small company rate and rate applicable to trusts 35 78
Impact of change in tax rate -(5)
Dividend income not subject to tax - (32)
Tax expense for the year 20,968 18,551
Effective tax rate 28.7% 30.4%
Year ended Year ended
30 June 30 June
2009 2008
£’000 £’000
Amounts recognised as distributions to equity holders in the period:
2008 Final dividend of 2.42p per share 11,224 -
2008 Final special dividend of 2.324p per share 10,779 -
First interim dividend of 3.065p (2008: 3.065p) per share 14,225 14,164
£’000
Final dividend proposed of 4.229p per share 19,640
Special dividend proposed of 2.807p per share 13,036
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 48
11. Dividends (continued)
Under an arrangement dated 30 June 1997 the Hargreaves Lansdown Employee Benefit Trust, which held the following number of ordinary
shares in Hargreaves Lansdown plc at the date shown, has agreed to waive all dividends. 
Year ended Year ended
30 June 30 June
2009 2008
Number of shares held by the Hargreaves Lansdown Employee Benefit Trust (HL EBT) 9,762,032 13,818,359
Representing % of called-up share capital          2.06% 2.91%
12. Earnings per share
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 issue during the period, including ordinary shares held in the EBT reserve which have vested unconditionally with
employees. 
Diluted earnings per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all
dilutive potential ordinary shares.  
Underlying basic earnings per share and underlying diluted earnings per share are calculated as for basic and diluted earnings per share, but
using an adjusted earnings figure such that the profit attributable to equity holders of the Company is stated before investment gains. The
directors consider that the underlying earnings per share represent a more consistent measure of underlying performance. 
Year ended Year ended
30 June 30 June
2009 2008
Earnings (all from continuing operations) £’000 £’000
Earnings for the purposes of basic and diluted earnings per share being net profit attributable to 
equity holders of the parent 52,123 42,394
Other gains and losses (740) (53)
Tax on other gains and losses 48 -
Earnings for the purposes of underlying basic and underlying diluted earnings per share 51,431 42,341
Number of shares Number Number
Weighted average number of ordinary shares for the purposes of diluted earnings per share 469,318,665 470,980,973
Weighted average number of shares held by HL EBT which have not vested unconditionally with employees 3,077,285 6,885,487
Weighted average number of ordinary shares for the purposes of basic earnings per share 466,241,380 464,095,486
Earnings per share Pence Pence
Basic earnings per share 11.2 9.1
Diluted earnings per share 11.1 9.0
Underlying basic earnings per share 11.0 9.1
Underlying diluted earnings per share 11.0 9.0
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 49
13. Goodwill - Group
30 June 30 June
2009 2008
£’000 £’000
Cost
At beginning and end of year 1,450 1,450
Accumulated impairment losses
At beginning and end of year 117 117
Carrying amount
At end of year 1,333 1,333
14. Other intangible assets - Group
Computer Software
£’000
Cost
At 1 July 2007 1,370
Additions 381
At 1 July 2008 1,751
Additions 368
Disposals (15)
Other movements (23)
At 30 June 2009 2,081
Amortisation
At 1 July 2007 1,289
Charge 171
At 1 July 2008 1,460
Charge 411
Disposals (15)
Other movements (12)
At 30 June 2009 1,844
Carrying amount
At 30 June 2008 291
At 30 June 2009 237
The net carrying value of goodwill relates entirely to the acquisition of Hargreaves Lansdown Pensions Direct Limited.  The Group tests
goodwill annually for impairment or more frequently if there are indications that goodwill might be impaired. The recoverable amount of
goodwill is determined from value in use calculations. The key assumptions for the value in use calculations are those regarding the discount
rates and growth rates during the period.  The Group prepares cash flow forecasts derived from the most recent financial forecasts covering
the period to 30 June 2011 approved by management extrapolated based on an estimated long term industry growth rate of 3%.
Management estimates discount rates using pre-tax rates that reflect current market assessments of the time value of money and the risks
specific to this subsidiary. The pre-tax rate used to discount the forecast cash flows is 9.8%.
Other movements relate to assets that are no longer in use by the Group.
Notes to the Financial Statements Fixtures, 
fittings,
plant and
equipment
£’000
Cost or valuation
At 1 July 2007 1,382
Disposals (2)
At 1 July 2008 1,380
Disposals (12)
At 30 June 2009 1,368
Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 50
15. Property, plant and equipment – Group
15. Property, plant and equipment - Company
Fixtures, 
fittings,
Motor plant and
Vehicles equipment Total
£’000 £’000 £’000
Cost or valuation
At 1 July 2007 24 5,210 5,234
Additions 31 933 964
Disposals (24) - (24)
At 1 July 2008 31 6,143 6,174
Additions - 1,251 1,251
Disposals - (33) (33)
Other movements - (244) (244)
At 30 June 2009 31 7,117 7,148
Accumulated depreciation and impairment
At 1 July 2007 11 2,974 2,985
Charge 8 1,050 1,058
Disposals (11) - (11)
At 1 July 2008 8 4,024 4,032
Charge 8 1,342 1,350
Disposals - (25) (25)
At 30 June 2009 16 5,341 5,357
Carrying amount
At 30 June 2008 23 2,119 2,142
At 30 June 2009 15 1,776 1,791
Other movements relate to assets that are no longer in use by the Group.
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 51
Accumulated depreciation and impairment Fixtures, 
fittings,
plant and
equipment
£’000
At 1 July 2007 1,044
Charge 160
At 1 July 2008 1,204
Charge 148
Disposals (10)
At 30 June 2009 1,342
Carrying amount
At 30 June 2008 176
At 30 June 2009 26
15. Property, plant and equipment – Company (Continued)
A list of the significant investments in subsidiaries, all of which are incorporated in the UK, is shown below.
Name of company Shares held Nature of business
Hargreaves Lansdown Asset Management Ltd 100% Unit trust and equity broking, investment fund management,
life and pensions consultancy
Hargreaves Lansdown Stockbrokers Ltd 100% Stockbroking
Hargreaves Lansdown Fund Managers Ltd 100% Unit Trust Management
Hargreaves Lansdown Pensions Direct Ltd 100% Pension broking
Hargreaves Lansdown Nominees Ltd 100% Nominee services
Hargreaves Lansdown Pensions Trustees Ltd 100% Trustee of the Vantage SIPP
Library Information Services Ltd 85% Data provider
Hargreaves Lansdown EBT Trustees Ltd 100% Trustee of the Employee Benefit Trust
Hargreaves Lansdown Trustee Company Ltd 100% Trustee of the Share Incentive Plan
16. Subsidiaries
17. Investments - Group
At 30 June At 30 June
2009 2008
£’000 £’000
At beginning of year 1,142 1,169
Purchases 1,317 -
Net decrease in the value of available-for-sale investments (note 24) (77) -
Disposals - (27)
At end of year 2,382 1,142
Current asset investments 2,382 1,142
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 52
17. Investments - Group (continued)
Current asset investments include the following:
At 30 June At 30 June
2009 2008
£’000 £’000
UK listed securities valued at quoted market price 1,641 401
Unlisted securities valued at cost 741 741
2,382 1,142
17. Investments – Company
At 30 June At 30 June
2009 2008
£’000 £’000
At beginning of period 2,630 2,630
Net decrease in the value of available-for-sale investments (note 24) (77) -
Purchases 1,001 -
At end of year 3,554 2,630
Non-current asset investments 2,152 2,152
Current asset investments 1,402 478
3,554 2,630
Investments include the following: At 30 June At 30 June
2009 2008
£’000 £’000
UK listed securities valued at quoted market price 924 -
Unlisted securities valued at cost 478 478
Non-current assets:– 
Investments in subsidiaries valued at cost less impairment 2,152 2,152
3,554 2,630
£717,000 (2008: £401,000) of investments are classified as held at fair value through profit and loss and £1,665,000 (2008: £741,000) 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
the revaluation gains and losses reflected in the investment revaluation reserve as shown in note 24, 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 where the directors believe that this is not significantly different to fair value, with
a fair value adjustment recognised upon disposal of the investment. 
£1,402,000 (2008: £478,000) of investments 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 the revaluation gains and losses reflected in the investment revaluation reserve as shown in
note 24, 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 where the directors believe
that this is not significantly different to fair value, with a fair value adjustment recognised upon disposal of the investment. 
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 53
18. Other financial assets
Trade and other receivables Group Company
At 30 June At 30 June At 30 June At 30 June
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Amounts receivable from subsidiaries and EBT - - 300 16
Trade receivables 60,780 63,620 - -
Other receivables 291 371 - -
Prepayments 14,346 12,611 128 307
75,417 76,602 428 323
19. Deferred tax
Other deductible
Accelerated Future relief on Share based temporary
tax depreciation capital losses payments differences Total
Group £’000 £’000 £’000 £’000 £’000
At 1 July 2007 510 - 4,121 347 4,978
Charge to income (156) - (151) (98) (405)
Charge to equity - - (1,220) - (1,220)
At 30 June 2008 354 - 2,750 249 3,353
Credit/(charge) to income 256 98 (113) 53 294
Charge to equity - - (1,821) - (1,821)
At 30 June 2009 610 98 816 302 1,826
Company
At 1 July 2007 440 - - - 440
(Charge)/credit to income (400) - - 13 (387)
At 30 June 2008 40 - - 13 53
Credit to income 24 - - - 24
At 30 June 2009 64 - - 13 77
Cash and cash equivalents Group Company
At 30 June At 30 June At 30 June At 30 June
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Cash and cash equivalents 87,416 68,241 34,795 28,674
Comprising: 
Restricted cash - client settlement account balances 10,231 3,776 - -
Restricted cash - balances held by EBT 6,800 10,934 - -
Group cash and cash equivalent balances 70,385 53,531 34,795 28,674
Trade 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, certain balances with clients,
Stock Exchange member firms and other counterparties are included in debtors.  Trade receivables include £54.0 million (2008: £55.4
million) of counterparty balances.
Cash and cash equivalents comprise cash held by the Group with instant or near-instant access.  Included in cash and cash equivalents are
amounts of cash held on client settlement accounts as shown above.  
The following are the major deferred tax assets recognised and movements thereon during the current and prior reporting years.
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 54
19. Deferred tax (continued)
20. Other financial liabilities
Group Company
At 30 June At 30 June At 30 June At 30 June
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Deferred tax asset 1,826 3,353 77 53
Trade and other payables Group Company
At 30 June At 30 June At 30 June At 30 June
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Current payables
Amounts payable to subsidiaries - - 14 3,236
Trade payables 62,601 60,138 - -
Social security and other taxes 3,423 3,294 155 107
Other payables 8,509 7,804 1,209 835
Accruals and deferred income 1,459 872 13 24
75,992 72,108 1,391 4,202
Commission 
on indemnity Property
terms costs Total
Included within non-current liabilities: £’000 £’000 £’000
At 1 July 2007 364 165 529
Utilised during year (85) - (85)
At 1 July 2008 279 165 444
Charged during year 96 244 340
At 30 June 2009 375 409 784
In accordance with market practice, certain balances with clients, Stock Exchange member firms and other counterparties are included in
creditors.  Trade payables include £61.5 million (2008: £56.9 million) of counterparty balances.  Accruals and other payables principally
comprise amounts outstanding for trade purchases and ongoing costs. 
The indemnity provision represents management’s best estimate of the Group’s liability to repay commission received on indemnity terms.
The provision is based on past experience and the volume of indemnified commission, and is expected to be utilised over indemnity periods of
up to 4 years.  
The provision on property related costs represents the Group’s future committed lease payments on non-cancellable leases and other
contractual obligations that arise on the surrendering of operating leases.
Notes to the Financial Statements
21. Provisions - Group Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 55
At 30 June At 30 June
2009 2008
£’000 £’000
Authorised:
525,000,000 ordinary shares of 0.4p each 2,100 2,100
Issued and fully paid:
Ordinary shares of 0.4p each 1,897 1,897
Shares Shares
Issued and fully paid:
Number of ordinary shares of 0.4p each 474,318,625 474,318,625
22. Share capital – Company and Group
At 30 June At 30 June
2009 2008
£’000 £’000
Balance at beginning and at end of year 88
At 30 June At 30 June
2009 2008
£’000 £’000
Balance at beginning and at end of year 12 12
23. Share premium account – Company and Group
24. Investment revaluation reserve
25. Capital redemption reserve – Company and Group
The Company has one class of ordinary shares which carry no right to fixed income.  
This reserve represents the difference between the issue price and the nominal value of shares issued.
The capital redemption reserve relates to the repurchase and cancellation of the Company's own shares. 
The investment revaluation reserve represents the decrease in fair value of available-for-sale investments held by the Group, net of deferred tax.
Group Company
At 30 June At 30 June At 30 June At 30 June
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Decrease in fair value of available-for-sale investments (77) - (77) -
Balance at end of year (77) - (77) -
Notes to the Financial Statements This distributable reserve represents the cumulative effect of share based payments and associated deferred tax.
Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 56
At 30 June At 30 June
2009 2008
£’000 £’000
Balance at beginning of year (9,739) (7,552)
Shares acquired in the year (3,832) (3,101)
Shares sold in the year 2,606 914
Balance at end of year (10,965) (9,739)
26. Shares held by Employee Benefit Trust reserve - Group
At 30 June At 30 June
2009 2008
£’000 £’000
Balance at beginning of year 12,053 12,030
(Loss)/gain on sale of shares by EBT (935) 23
Balance at end of year 11,118 12,053
27. EBT reserve - Group
At 30 June At 30 June
2009 2008
£’000 £’000
Balance at beginning of year 6,885 7,082
Share based payments expense 184 205
Deferred tax effect of share based payments (1,821) (1,220)
Tax relief on exercise of share options 2,329 818
Balance at end of year 7,577 6,885
28. Share option reserve - Group
29. Retained earnings 
The shares held by Employee Benefit Trust reserve represents the cost of shares in Hargreaves Lansdown plc purchased in the market and held
by the Hargreaves Lansdown plc Employee Benefit Trust to satisfy options under the Group’s share option schemes (see note 32).
The EBT reserve represents the cumulative gain/(loss) on disposal of investments held by the Hargreaves Lansdown Employee Benefit Trust
(“the EBT”).  The reserve is not distributable by the Company as the assets and liabilities of the EBT are subject to management by the
Trustees in accordance with the EBT trust deed.
Group Company
At 30 June At 30 June At 30 June At 30 June
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Balance at beginning of year 59,255 31,018 25,769 2,178
Dividends paid (36,228) (14,164) (36,228) (14,164)
Net profit for the year 52,113 42,394 46,150 37,755
Minority Interest 10 7 - -
Balance at end of year 75,150 59,255 35,691 25,769
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 57
30. Note to the consolidated cashflow statement
31. Commitments
Group Company
Year ended Year ended Year ended Year ended
30 June 30 June 30 June 30 June
2009 2008 2009 2008
£’000 £’000 £’000 £’000
Profit for the year after tax 52,113 42,394 46,150 37,755
Adjustments for:
Investment revenues (2,534) (3,113) (46,359) (38,740)
Other gains and losses (740) (53) (746) -
Income tax expense 20,968 18,551 (66) 355
Depreciation of plant and equipment 1,350 1,058 148 160
Amortisation of intangible assets 399 171 - -
Share-based payment expense 184 205 - -
Increase/(decrease) in provisions 340 (85) - -
Operating cash flows before movements in working capital 72,080 59,128 (873) (470)
Decrease/(increase) in receivables 1,185 (25,067) (105) 418
Increase/(decrease) in payables 3,884 7,851 (2,811) 1,320
Cash generated by operations 77,149 41,912 (3,789) 1,268
Income taxes (paid)/received (20,198) (7,242) 32 2,725
Net cash from operating activities 56,951 34,670 (3,757) 3,993
Year ended Year ended
30 June 30 June
2009 2008
Operating lease commitments £’000 £’000
The Group as lessee
Minimum lease payments under operating leases recognised as an expense in the year 968 810
At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under the remaining term of non-
cancellable operating leases, which fall due as follows:
Within one year 987 827
In the second to fifth years inclusive 10,602 8,525
After five years 33,997 2,810
Total minimum lease payments 45,586 12,162
Operating lease payments represent rentals payable by the Group for its office properties. The Group leases various offices under non-
cancellable operating lease agreements. The leases have varying terms, escalation values and renewal rights.
Total future minimum sublease payments expected to be received under a non-cancellable sublease at 30 June 2009 is £35,000
V AT group registration
As a result of group registration for VAT purposes, the Company is contingently liable for VAT liabilities arising in other companies within the
VAT group which at 30 June 2009 amounted to £94,219 (2008: £119,184).  
Capital commitments
At the balance sheet date, the Group had £818,000 (2008: £nil) worth of capital commitments regarding purchase of new office equipment.
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 58
32. Share based payments
Equity-settled share option scheme
The Group seeks to facilitate significant equity ownership by employees, principally through schemes which encourage and assist the purchase
of the Company’s shares.  
The Group operates three share option plans: the Employee Savings-Related Share Option Scheme (“SAYE”), the Hargreaves Lansdown plc
Share Incentive Plan (“SIP”), and the Hargreaves Lansdown Company Share Option Scheme (the “Executive Option Scheme").
Awards granted under the Employee SAYE scheme vest over five years. Awards granted under the Employee Share Incentive Plan vest over a
three-year period.  Awards granted under the Executive Option Scheme vest between nil and ten years.  Options are exercisable at a price
equal to the market value of the Company’s shares on the date of grant.  There are no performance conditions for options granted under any
of the schemes, although options are forfeited if the employee leaves the Group before the options vest.  
The recognition and measurement principles in IFRS 2 have been applied to all grants after 7 November 2002 which had not vested by 1 July
2005. They have not been applied to any grants made prior to 7 November 2002.
Details of the share options outstanding during the year are as follows:
30 June 2009 30 June 2008
Weighted Weighted
average average
Share exercise Share exercise
options price options price
No. Pence No. Pence
SIP
Outstanding at beginning of year 886,875 23.5 959,750 23.5
Exercised during the year (21,725) 23.5 - -
Forfeited during the year (88,550) 23.5 (72,875) 23.5
Outstanding at the end of the year 776,600 23.5 886,875 23.5
Exercisable at the end of the year ----
SAYE
Outstanding at beginning of year 8,138,625 33.3 8,867,925 10.4
Granted during the year 533,682 175.0 - -
Exercised during the year (3,449,124) 4.4 (274,725) 3.6
Forfeited during the year (588,622) 70.2 (454,575) 36.8
Outstanding at the end of the year 4,634,561 66.4 8,138,625 33.3
Exercisable at the end of the year 22,651 54.5 - -
Executive Option Scheme
Outstanding at beginning of year 2,392,500 63.6 4,042,500 60.5
Exercised during the year (2,392,500) 63.6 (1,650,000) 56.1
Granted during the year 829,170 195.4 - -
Outstanding at the end of the year 829,170 195.4 2,392,500 63.6
Exercisable at the end of the year - - 2,392,500 63.6
The weighted average share price of options exercised during the year at the date of exercise was 177.17 pence.
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 59
32. Share based payments (continued)
The share options outstanding at the end of each year have exercise prices and expected remaining lives as follows:
The fair value at the date of grant of options awarded during the year ended 30 June 2009 has been estimated by the Black Scholes
methodology and the principal assumptions required by the methodology were as follows:
30 June 2009 30 June 2008
Weighted Weighted
average average
Share expected Share expected
options remaining options remaining
No. life No. life
Option exercise price range (pence)
2.7 to 3.6 - - 3,402,575 0.1 years
23.5 776,600 0.4 years 886,875 1.4 years
54.5 4,179,551 2.8 years 4,736,050 3.9 years
63.6 - - 2,392,500 0 years
175.0 455,010 4.3 years - -
195.4 829,170 4.8 years - -
6,240,331 2.9 years 11,418,000 1.3 years
At 30 June
2009
Weighted average share price 181.12 p
Expected dividend yields 4.97%
SAYE
Weighted average exercise price 175.00 p
Expected volatility 13%
Risk-free rate 3.00%
Expected life 5 years
Executive scheme
Weighted average exercise price 195.38 p
Expected volatility 13%
Risk-free rate 3.00%
Expected life 5 years
No share options were granted during the year ended 30 June 2008.  The weighted average share price during the year ended 30 June 2008
was 190.15p.  
Prior to 15 May 2007 the Company’s shares were not listed on a stock exchange and therefore no readily available market price existed for the
shares.  The share price of share option awards granted prior to 15 May 2007 were based on the latest market value agreed with HM Revenue
& Customs using an earnings multiples approach based on comparable quoted companies.  Similarly, share price volatility was estimated as the
average of the volatility experienced by a comparable group of quoted companies.  The expected life used in the model has been adjusted,
based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural considerations.  Since 15
May 2007, a quoted market price has been available for the company’s shares. 
The Group recognised total expenses related to equity-settled share-based payment transactions as shown in note 7.
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 60
33. Events after the balance sheet date
Dividend
On 2 September 2009 the Directors proposed a second interim (final) ordinary dividend payment of 4.229 pence per ordinary share and a
special dividend of 2.807 pence per ordinary share, payable on 30 September 2009 to all shareholders on the register at the close of business
on 11 September as detailed in note 11. 
Lease
On 22 July 2009, the Company signed the lease for the Group’s new head office premises.  The lease term is 17.25 years with annual rent
payable of £2.74 million p.a.  The Group will also benefit from an initial 15 month rent-free period and other lease incentives.
34. Related party transactions
The Group has a related party relationship with its subsidiaries, and with its directors and members of the Executive Committee (the “key
management personnel”). Transactions between the Group and its key management personnel are disclosed below.  Details of transactions
between the Group and other related parties are also disclosed below.     
Trading transactions
The Group entered into the following transactions with directors and related parties who are not members of the Group:
During the years ending 30 June 2009 and 30 June 2008 the Group has been party to a lease with P K Hargreaves and S P Lansdown, who
are both directors of the Company, for the rental of the head office premises at Kendal House at an annual rental of £302,400.  No amount
was outstanding at any year end.
During the years ending 30 June 2009 and 30 June 2008 the Group has provided a range of investment services to shareholders, directors
and staff on normal third party business terms.
Remuneration of key management personnel
The remuneration, excluding national insurance costs, of the key management personnel of the Group being those personnel who were either
a member of the Board of a Group company or a member of the Executive Committee during the relevant year shown below, is set out below
in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.  
Year ended Year ended
30 June 30 June
2009 2008
£’000 £’000
Short-term employee benefits 6,337 5,682
Defined contribution pension costs 171 417
Share-based payments 31 15
6,539 6,114
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 61
34. Related party transactions (continued)
Included within the previous table are the following amounts paid to directors of the Company who served during the relevant year.  Full
details of directors’ remuneration are shown in the Remuneration Committee report. 
35. Financial instruments
Fair value
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 values 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 which the directors believe is not significantly different to fair value.  
Nature and extent of risks arising from financial instruments
(a) Financial risk management
Financial assets principally comprise trade and other receivables, cash and cash equivalents, and current asset listed and unlisted investments.
Financial liabilities comprise certain provisions and trade and other payables. The main risks arising from financial instruments are interest rate
risk, foreign exchange risk, price risk, liquidity risk, and credit risk. Each of these risks is discussed in detail below. 
The Group monitors financial risks on a consolidated basis.  Hargreaves Lansdown’s financial risk management is based upon sound economic
objectives and good corporate practice.  No hedging transactions have taken place during the years presented.  The Group has designed a
framework to manage the risks of its business and to ensure that the Directors have in place risk management practices appropriate to a listed
company. The management of risk within the Group is governed by the Board. 
Transactions between subsidiaries and between the Company and its subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed in this note. The parent Company, Hargreaves Lansdown plc, entered into the following transactions with
subsidiaries and the Employee Benefit Trust, which are related parties.
All amounts outstanding with related parties are unsecured and will be settled in cash.  No guarantees have been given or received in respect of
amounts outstanding.  No provisions have been made for doubtful debts in respect of the amounts owed by the related parties.  
Year ended Year ended
30 June 30 June
2009 2008
£’000 £’000
Wages and salaries, excluding national insurance costs 2,124 1,613
Pension contributions 22 218
Share-based payments 22
2,148 1,833
Aggregate gains made on the exercise of share options 504 2,540
Emoluments of the highest paid director 1,017 747
Number of directors who were members of money purchase pension schemes 2 1
Year ended Year ended
30 June 30 June
2009 2008
£’000 £’000
Dividends received from subsidiaries 45,750 38,300
Management charges to subsidiaries 720 699
Amounts owed to related parties at 30 June 14 3,237
Amounts owed by related parties at 30 June 300 16
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 62
35. Financial instruments (continued)
(b) Market risk
Interest rate risk
Interest rate risk is the risk that the Group will sustain losses from adverse movements in interest bearing assets.  There is an exposure to
interest rates on banking deposits held in the ordinary course of business.  At 30 June 2009 the value of financial instruments on the Group
balance sheet exposed to interest rate risk was £87,416,000 (2008: £68,241,000) comprising cash and cash equivalents.  A 100bps (1%) move
in interest rates, in isolation, would not have a material impact on the Group balance sheet or results.  This exposure is continually monitored
to ensure that the Group is maximising its interest earning potential within accepted liquidity and credit constraints. The Group has no
external borrowings and as such is not exposed to interest rate or refinancing risk on borrowings.  Cash at bank earns interest at floating rates
based on daily bank deposit rates.  Short term deposits are also made for varying periods of between one day and six months depending on the
immediate cash requirements of the Group and earn interest at the respective fixed term deposit rates.  As a source of revenue is based on the
value of client cash under administration, the Group has an indirect exposure to interest rate risk on cash balances held for clients. These
balances are not on the Group balance sheet. 
Foreign exchange translation and transaction risk
Foreign currency risk is the risk that the Group will sustain losses through adverse movements in currency exchange rates.  With substantially
all of the Group's businesses located within the UK, and therefore with minimal net assets and transactions of the Group denominated in
foreign currencies, the Group is not exposed to significant foreign exchange translation or transaction risk and as such does not hedge any
foreign current assets or liabilities.  The Group deals in foreign currencies on a matched basis on behalf of clients, limiting foreign exchange
exposure.  
Price risk
Price risk is the risk that a decline in the value of assets adversely impacts on the profitability of the Group as a result of an asset not meeting its
expected value.  
The Group is exposed to price risk on corporate investments held on the Group balance sheet.  At 30 June 2009, the fair value of investments
recognised on the Group balance sheet was £2,382,000 (2008: £1,142,000).  A 20% move in equity prices, in isolation, would not have a
material impact on the Group balance sheet or results. 
As a main source of revenue is based on the value of client assets under administration, the Group has an indirect exposure to security price risk
on investments held for clients. These assets are not on the Group balance sheet.  The risk of lower revenues is partially mitigated by asset class
diversification.  The Group does not hedge its revenue exposure to movements in the value of client assets arising from these risks, and so the
interests of the Group are aligned to those of its clients.
In addition, the Group acts as a private client investment manager, unit trust manager and agency stockbroker on a matched basis so its
exposure to market price movements in this capacity is limited to when there is a trade mismatch or error, or if one matched counterparty fails
to fulfil its obligations.  The impact of these risks is minimised by limits and monitoring controls.
(c) Liquidity risk
The Group is exposed to liquidity risk, namely, the risk that it may be unable to meet its payment obligations as they fall due.  The Group is
highly cash generative and holds significant liquid assets.  The Group actively maintains cash balances on short term deposit to ensure that the
Group has sufficient available funds for operations.
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 63
35. Financial instruments (continued)
The table below analyses the maturities of the undiscounted cashflows relating to financial liabilities of the Group based on the remaining
period to the contractual maturity date at the balance sheet date.
0-3 3-6 6-12 Over 
months months months 1 year Total
£’000 £’000 £’000 £’000 £’000
At 30 June 2009
Trade and other payables - current:
Trade payables 62,602 - - - 62,602
Social security and other taxes 3,381 42 - - 3,423
Other payables 8,176 333 - - 8,509
Accruals and deferred income 1,425 33 - - 1,458
Total 75,584 408 - - 75,992
Current tax 4,795 4,178 12 12 8,997
Long term provisions 418 42 315 9 784
Total financial liability exposed to liquidity risk 80,797 4,628 327 21 85,773
At 30 June 2008
Trade and other payables - current:
Trade payables 60,138 - - - 60,138
Social security and other taxes 3,252 42 - - 3,294
Other payables 7,456 348 - - 7,804
Accruals and deferred income 848 24 - - 872
Total 71,694 414 - - 72,108
Current tax 4,500 4,500 1,266 - 10,266
Long term provisions 279 - - 165 444
Total financial liability exposed to liquidity risk 76,473 4,914 1,266 165 82,818
(d) Credit risk
The Group has no significant concentration of credit risk as credit exposure is spread over a large number of counterparties and customers.  
Within the Group’s Stockbroking operation, the Group is exposed to credit risk from counterparties to a securities transaction during the
period between the trade date and the settlement date. This period is generally three business days. The Group has credit exposure that
extends beyond the original settlement date if the counterparty fails either to make payment or to deliver securities. These transactions are
with financial institutions and clients.  Settlement risk is substantially mitigated as a result of the delivery versus payment mechanism whereby
if a counterparty fails to make payment, the securities would not be delivered to the counterparty. In that instance, the securities could be sold
in the market and therefore the economic substance of the transaction is that securities serve as collateral in the case of delivery versus payment
trade debtors. As a result, the risk exposure is effectively to an adverse movement in market prices between the time of trade and settlement.  
Other credit risk within the Group is primarily attributable to its trade receivables and the majority represents balances due from other
regulated financial institutions where there is an ongoing relationship between the Group and institution. Credit risk is therefore considered
to be limited.  The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is
made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash
flows.
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 64
35. Financial instruments (continued)
Cash is held with UK banks. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by
international credit-rating agencies and since November 2008 the banks consist of certain eligible banks under the UK Government Credit
Guarantee Scheme. The Group takes a conservative approach to treasury management and selection of banking counterparties, and carries
out a regular review of all its banks’ and custodians’ credit ratings.    
The following table discloses the Group’s maximum exposure to credit risk on financial assets.
The following table contains an analysis of financial assets that are past due but not impaired at the balance sheet date.  An asset is past due
when the counterparty has failed to make a payment when contractually due.
At At
30 June 30 June
2009 2008
£’000 £’000
Receivables at cost:
Cash and cash equivalents 87,416 68,241
Trade and other receivables 75,417 76,602
Financial assets at fair value through profit or loss:
Financial investments 717 401
Available-for-sale financial assets:
Financial investments 1,665 741
165,215 145,985
Neither Over 12
impaired 0-3 months 3-6 months 6-12 months months
nor past due past due past due past due past due Total
Group £’000 £’000 £’000 £’000 £’000 £’000
At 30 June 2009
Trade and other receivables:-
Trade receivables 56,232 4,026 174 240 108 60,780
Other receivables 289 - - 2 - 291
Prepayments and accrued income 14,346 ---- 14,346
70,867 4,026 174 242 108 75,417
Held for trading assets 717 ---- 717
Available-for-sale assets 1,665 ---- 1,665
73,249 4,026 174 242 108 77,799
At 30 June 2008
Trade and other receivables:-
Trade receivables 55,629 7,582 215 131 63 63,620
Other receivables 367 - 3 - 1 371
Prepayments and accrued income 12,312 - 43 87 169 12,611
68,308 7,582 261 218 233 76,602
Held for trading assets 401 ---- 401
Available-for-sale assets 741 ---- 741
69,450 7,582 261 218 233 77,744
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 65
35. Financial instruments (continued)
The table below shows the credit quality of financial assets that are neither past due nor impaired using the following counterparty gradings:
Financial institutions 
In respect of trade receivables, £1.5 million (2008: £9.9 million) is due from financial institutions regulated by the FSA in the course of
settlement as a result of daily trading and £4.3 million (2008: £4.4 million) relates to revenue items due from financial institutions regulated
by the FSA.
For prepayment and accrued income, the balance predominantly relates to accrued interest due from financial institutions regulated by the
FSA on own and client cash balances.
Corporate clients 
Prepayments relating to businesses other than financial institutions, mainly purchase suppliers.
Individuals
In respect of trade receivables, the balance is related to amounts due from individual clients in the course of settlement as a result of daily
trading. 
In respect of prepayments and accrued income, the balance includes management fees and charges due from clients.
Financial Corporate
institutions clients Individuals Total
Group £’000 £’000 £’000 £’000
At 30 June 2009
Trade receivables 5,712 - 50,520 56,232
Other receivables 289 - - 289
Prepayments and accrued income 10,854 1,615 1,877 14,346
Held for trading assets 717 - - 717
Available-for-sale assets 1,665 - - 1,665
19,237 1,615 52,397 73,249
At 30 June 2008
Trade receivables 14,365 - 41,264 55,629
Other receivables 367 - - 367
Prepayments and accrued income 8,952 1,224 2,136 12,312
Held for trading assets 401 - - 401
Available-for-sale assets 741 - - 741
24,826 1,224 43,400 69,450
Capital management
Capital is defined as the total of share capital, share premium, retained earnings and other reserves. Total capital at 30 June 2009 was
£84,650,000 (2008: £70,311,000) and this capital is managed via the net assets to which it relates.  
Regulatory capital is determined in accordance with the requirements of the Capital Requirements Directive prescribed in the UK by the
Financial Services Authority (“FSA”), and the Group’s regulatory capital is divided into two tiers:
- Tier 1 capital, which is the total of issued share capital, retained earnings and reserves created by appropriations of retained earnings, net of
the book value of goodwill and other intangible assets; and 
- Tier 2 capital, which is unrealised gains arising on the fair valuation of equity instruments held as available-for-sale.
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 66
35. Financial instruments (continued)
The Group’s objectives when managing capital are i) to comply with the regulatory capital requirements set by the FSA; ii) to safeguard the
Group’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders;
and iii) to maintain a strong capital base to support the development of its business.
All regulated entities within the Group are required to meet the Pillar 1 regulatory Capital Resources Requirements (CRR) set out in the
Capital Requirements Directive (the Directive).  The CRR is the higher of i) the fixed overhead requirement and ii) the sum of the credit risk
capital requirement and the market risk capital requirement. 
The Group is also required to comply with the requirements of the Directive under Pillar 2 (operational risk) and Pillar 3 (disclosure) in
respect of the Group’s regulatory capital requirements. The Directive requires continual assessment of the Group’s risks in order to ensure
that the higher of Pillar 1 and 2 requirements is met, the objective being to ensure that the regulated firms have adequate capital to enable
them to manage their risks. The Group completes its assessment of regulatory capital requirements using its Individual Capital Adequacy
Assessment Process (ICAAP) under Pillar 2, which is a forward looking exercise that includes stress testing on major risks, such as a significant
market downturn, and identifying mitigating action. The ICAAP covers current as well as projected capital requirements, and is used to
manage regulatory capital. Under the requirements of Pillar 3, the Group is required to disclose regulatory capital information, and has done
so by making the disclosures available in the Group’s website at http://www.h-l.co.uk/investor-relations/pillar-3-disclosures.
All of the regulated firms maintained surplus regulated capital throughout the year.  The aggregated regulatory Pillar 1 capital surplus across
the four regulated subsidiaries was approximately £34 million at 30 June 2009 (2008: £25 million). Capital adequacy and the use of
regulatory capital are monitored by the Group’s management. 
Notes to the Financial Statements Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 67
Executive Directors
Peter Hargreaves  
Stephen Lansdown 
Tracey Taylor (appointed 24 November 2008)
Non-Executive Directors
Jonathan Bloomer 
Michael Evans
Jonathan Davis
Company Secretary
Simon Power
Auditors
Deloitte LLP, Bristol
Solicitors
Burges Salmon LLP, Bristol
Principal Bankers
Lloyds TSB Bank plc, Bristol
Brokers
Citigroup Global Markets Limited 
Numis Securities Limited
Registrars
Equiniti Limited 
Registered Office
Kendal House
4 Brighton Mews
Clifton
Bristol
BS8 2NX
Website
www.H-L.co.uk 
Company Number
02122142
Directors, Company Secretary, Advisors and Shareholder Information Hargreaves Lansdown Plc | Annual report and financial statements | Year ended 30 June 2009 68
Five Y ear Summary
IFRS IFRS IFRS IFRS IFRS
2009 2008 2007 2006 2005
£’000 £’000 £’000 £’000 £’000
Revenue 132,845 120,332 98,769 73,460 50,379
Administrative expenses (63,038) (62,553) (58,098) (49,190) (37,290)
Share of results of associates ---- (3)
Underlying operating profit 69,807 57,779 40,671 24,270 13,086
Exceptional administrative expenses - - (29,628) (19,627) (451)
Operating profit 69,807 57,779 11,043 4,643 12,635
Investment revenue 2,534 3,113 1,430 2,919 1,833
Other gains and losses 740 53 11,917 35 36
Profit before tax 73,081 60,945 24,390 7,597 14,504
Tax (20,968) (18,551) (7,435) (1,584) (4,172)
Profit after tax 52,113 42,394 16,955 6,013 10,332
Equity minority interests 10 7 - - -
Profit for the financial year attributable to members of 
the parent company 52,123 42,401 16,955 6,013 10,332
Equity shareholders’ funds 84,720 70,371 44,495 17,469 35,131
Weighted average number of shares for the purposes of 
diluted EPS (million) 469.32 470.98 474.32 474.32 474.32
pence pence pence pence pence
Equity dividends per share paid during year 7.809 3.065 3.00 1.81 0.72
Basic earnings per share 11.2 9.1 3.6 1.4 2.2
Diluted earnings per share 11.1 9.0 3.6 1.3 2.2
Underlying basic earnings per share 11.0 9.1 6.5 4.5 2.2
Underlying diluted earnings per share 11.0 9.0 6.4 4.2 2.2   Issued by Hargreaves Lansdown plc
Kendal House, Brighton Mews, Clifton, Bristol, BS8 2NX
Registered number: 02122142