Henderson pre-tax profits jump 58%

Henderson Group has reported underlying pre-tax profits of £159.2m for 2011.

The figure is up 58 per cent on the £100.7m of pre-tax profits in 2010 with the group citing the acquisition of fund manager Gartmore as a major contributor to the increase.

The group saw assets under management jump from £61.6bn to £64.3bn at December 31,2011, while total fee income rose to £480m in 2011, up from £362.9m in the previous year.

Recurring profit before tax fell slightly from £87m in 2010 to £82.2m last year.

The acquisition of Gartmore cost Henderson £69.7m, however the firm says that this fell back to £34.5m after tax and other benefits. These include costs related to staff, mergers and rebranding.

The group also increased its dividend from 6.5p per share to 7p.

Henderson chief executive Andrew Formica says: “The acquisition of Gartmore has exceeded our expectations on all counts and made a significant contribution to these results. We also made good progress in our key strategic objectives, growing our retail and absolute return businesses and selling a number of non-core assets. We have succeeded in driving efficiencies in the Group, whilst continuing to invest in the business.

“Market conditions remain uncertain, but I am confident about the outlook for the Henderson Group. We have succeeded in strengthening both our business and client offerings and are well equipped to continue to deliver good returns for our investors through this volatility. As always, our focus is on delivering the best product and service to our clients, and creating value for our shareholders.”