View more on these topics

Henderson expects profits to be slashed in half

Henderson Group has warned that it expects profits to halve for the first half of 2009.

The group says it expects profits of between £25m and £28m in the period, including one quarter’s contribution from New Star, with the figure down from the £50.8m taken in for the first half of 2008.

Henderson says the contribution of New Star will increase Group earnings in the second half of the year with a full period of ownership. The firm says asset retention levels are 77 per cent better than expected.

Henderson says it has reduced the expense ratio of the acquired New Star business to 38 per cent from July 1, 2009, six months ahead of expectations.

Henderson Group chief executive Andrew Formica says: “Although we saw some welcome stability return to markets in the second quarter of 2009, they remain significantly below the average level of last year.”

“As expected, and as flagged earlier this year, lower markets, combined with fragile investor confidence and demand, have had an adverse impact on our revenues. The prompt action we took to reduce our costs and the benefits of the New Star acquisition for nearly three months have helped to offset some of this impact, but profits will be lower in the first half of 2009.”

Recommended

PosSol expands level 4 training

Positive Solutions is set to roll out its apprenticeship scheme across the country and is in talks with universities about developing a follow-up programme to bring candidates up to QCF level four.

Mismatch of the day

I once had a client for whom the optimum portfolio was a single share – either he held it or he didn’t. In a similar vein, the riskiest position he ever took, in his view, was holding only cash. In such circumstances, it meant he was bereft of positive ideas and was invested in an asset class bound to be eroded by inflation.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com