View more on these topics

Henderson profits surge but it faces £7.6m FSCS levy

Andrew Formica
Formica: ’Reinforce position’

Henderson has received a £7.6m interim levy from the Financial Services Compensation Scheme as it announced a 37 per cent increase in profits for 2010.

Underlying profit was £100.7m compared with £73.7m in 2009 and assets under management rose by 11 per cent to £58.7bn.

The company has seen higher margin inflows of £2bn in 2010 compared with £700m while operating margin increased by 9 per cent to 30 per cent.

Henderson says this is due to higher market levels, positive higher margin inflows as well as the benefits of the New Star acquisition in April 2009 and continued cost control.

The board has proposed a final dividend for the full year of 4.65p, up from 4.25p.

The FSCS last month announced a £93m interim levy on advisers. The levy includes FSCS compensation costs of £86m, mainly to compensate Lifemark investors, and management expenses of £7m. In addition, investment fund managers are to be billed £233m, meaning the total FSCS interim levy is £326m.

Earlier this year, Henderson announced plans to acquire Gartmore for an estimated £335m. The acquisition is set to conclude in April.

Henderson chief executive Andrew Formica says: “This acquisition will reinforce our position as a diversified asset manager bringing with a credible, traditional and absolute return franchise as well as additional investment strengths and it will significantly streng- then our presence among UK retail investors.”

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