The phenomenal success story that is Bristol-based stockbrokers Hargreaves Lansdown continued yesterday with the announcement that its profits were up 42 per cent to £57 million.

The company – which was formed more than 20 years ago and floated on the stock exchange in May 2007 – is now the biggest stockbroker in the West Country and is fast becoming one of the region's most powerful financial institutions.

Chief executive Peter Hargreaves and chairman Stephen Lansdown set up the company in a Clifton house and have subsequently overseen one of the region's biggest business success stories.

During the past year, the company has seen its revenues increase by 22 per cent to just over £120m while competitors have struggled in the tough economic climate.

Earnings per share increased by 41 per cent to 9p and operating profit margin was up by more than 40 per cent.

Mr Hargreaves said he was delighted with the results and added: "We have demonstrated our resilience this year, by maintaining our inflows and increasing our assets under administration, despite a 16 per cent decline in the FTSE All-Share index. Our exceptional service, informative website, publications and accessible helpdesk have encouraged both new and existing clients to entrust us with their assets, whilst our continued entrepreneurial approach has enabled us to reach people in new ways and talk to them about their investments."

He also revealed that his company, soon to move its headquarters to Bristol's Harbourside, was looking to expand even further.

He said : "Over the coming months we shall focus on exploiting opportunities which still exist, such as the transfer market, growth in demand for advice and discretionary services and protected rights pension monies, which will become eligible for our SIPP (self-invested personal pension) in October. We will also continue to suggest more appropriate investments for the billions we believe are poorly invested elsewhere.

"We expect market conditions to remain challenging, but our aim will be to emerge with an increased presence in the market."

The move to the Stock Exchange has not been without its problems and Mr Hargreaves said: "Our first full financial year as a publicly quoted company has been a testing time.

"Our trading results must be viewed in light of the state of world stock markets and the world economy. Volatile markets bring the fear factor to the fore and investors shun stock market investment.

"There have been many factors affecting financial markets, such as the American sub-prime debacle, the collapse of property markets, the credit crunch, the oil price and recent falls in the Chinese and Indian stock markets, which had been billed as two of the world's most promising economies.

"During the financial year ended 30 June 2008 the assets that we administer for clients have increased from £10.2 billion to £11.1bn, an increase of £0.9bn, or nine per cent.

"We would be the last to be pleased about the overall figure but, in light of markets, this result is nothing less than remarkable. It does demonstrate our ability to grow client assets even in tough conditions."