Redesign of the FTSE: how two accountants became £ 1,000 £ 1. 5bn

Society 52pc founded and still owned by Peter Hargreaves and Stephen Lansdown, is promoted with ITV and Wood Group when the last quarterly realignment comes into effect Monday.

Mr. Hargreaves and Mr. Lansdown formed their partnership, which is now a total value of £ 1. 5bn or capitalization half the stock company of £ 3, with an investment of £ 500 in 1981.

About 660 staff hold 10pc of Hargreaves Lansdown shares and 14 000 customers who subscribed for stock 160 p in the flotation, less than four years have almost quadrupled their money to the 635 p Wednesday closing price.

Mr. Hargreaves, 64, said: "the secret of our success is simple;" We give customers what they want.

"If you call our hotline, a real person answer." If we say that we will communicate with you, we will. Emails are answered within four hours and letters are a response by return of mail.

Questioned the viability of its enterprise commercial actions of the coefficient of capitalization above 37 - or more than double the average FTSE 100 - Mr. Hargreaves responded: "I've always said our actions are expensive."

"The rationale is that our business model is unique, the quality of our earnings and admission fees."

"We receive no commission sales, so it takes a long time to become a profitable customer." But receive a share of the burden of management annual is the right way before because if what we buy monte in value for the client, the client is better and we earn more. »

Dismissing fears that rising like a rocket could descend like a stick, Mr. Hargreaves stressed: "we have no debt - on the contrary." We have enough cash in the Bank of commerce for 12 months without income at all.

"We might be the first company to make the FTSE without borrowing or acquisitions." He did everything by organic growth. »

The reshuffle sees Bunzl, Alliance Trust and African Barrick Gold relegated to the FTSE 250.

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