Henderson Group interims defy volatile markets and fragile confidence

In its interim results statement, the Henderson Group (LON:HGG) highlighted strong growth, with revenues up 50% and profits up 80% from a year earlier, overcoming “market volatility and fragile investor confidence”. Assets under management (AUM) grew by 19% to £58.2bn.

The company claims that a competitive investment performance, skilled sales teams, and improved brand awareness had spurred on the business in the first six-months of the year. Henderson also highlighted that its ability to “capitalise on diverse investment opportunities” also contributed to the improved performance.

"Henderson has delivered a strong first half, despite market volatility and fragile investor confidence,” Henderson chief executive Andrew Formica said. “We expect market volatility to continue in the second half, though the business trends seen so far this year remains intact."
In the six-months ended 30 June 2010, Henderson’s underlying pre-tax profit grew by 79% to £48.5m (H109:£27.1m). The company’s investment funds

experienced a net inflow of £1bn during the period, compared to a £0.6bn outflow in the first half of 2009.

Henderson emphasised that its investment performance remains good in most areas. According to Henderson, most of its funds either matched or outperformed their respective benchmarks, with 72% of Fixed Income and 69% of Equity funds

achieving this target.

Underlying profit before tax has increased 79% to £48.5m (H109: £27.1m), and at the end of the period AUM had reached £56.4bn – down slightly from the 2009 full-year end which showed £58.1bn.

Basic earnings per share (EPS), based on underlying profit, increased by 62% to 4.7p (H109:2.9p), and the company declared a 1.85p per share interim dividend, which is line with last year.

Looking ahead, the asset manager cautioned over the “potential impact of regulatory changes ... as regulators and governments seek to rebuild trust and confidence”. However it believes that despite the challenges “faced by markets and by the industry”, the company is “well positioned to launch new products and to continue to grow”.