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Henderson Group announces 47% profit fall

Henderson Group has posted a 47 per cent fall in pre-tax profits for the first half of 2009.

The firm announced pre-tax profits of £27.1m for the first half of the year, down on the £50.8 for the first six months of 2008 with the firm citing outflows, negative markets and currency movements for the fall.

In a market update from last month, Henderson Group revealed that it expected profits to be slashed to around £25m-£28m, including one quarter contribution from New Star.

Henderson Group’s assets under management stood at £53bn at the end of June 2009, a slight increase on the £52.6bn 12 months earlier. At January 1, 2009, the group assets under management stood at £49.5bn.

The group has seen £0.1bn of inflows for the second quarter of 2009 following on from £3bn of outflows in the first quarter

The group’s interim dividend stand at 1.85p per share.

Henderson Global Investors has also seen its profits before tax fall to £34.6m, down from £60.6m for the first six months of 2008.

Chief executive Andrew Formica says: “Although markets have recently improved, they are still well below the levels of 2007 and 2008 and, therefore, 2009 will be more challenging for earnings. However, we should benefit from a full period of ownership of New Star in the second half of 2009 and also the growing interest of clients in our products that we have seen of late. In addition, our competitive long-term investment performance, diversity of revenues, and active cost management should provide some support.”

Formica says that the group is looking at a number of opportunities for further acquisition, but says any talks are at a preliminary stage.

“The improvements in market conditions have meant that any firm that is considering its future has held back. Any acquisitions are likely to be smaller than the New Star acquisition which was in the region of £100m. We would look to increase our penetration in the Asian market as well as the property market. We are also looking at our hedge fund and retail offering. The aim is to improve the talent and depth of our investment team.”

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