Asset manager Henderson (HGG) had a decent 2014, with funds under management (FUM) swelling 8 per cent to £81.2bn. That was despite the loss of £5.3bn in mandates through business disposals - on a like-for-like basis FUM would have grown 16 per cent. Crucially, it was a record year for net inflows, which more than doubled to £7.1bn.
The growth in funds drove a 22 per cent increase in management fee income to £404m. Performance fees came in lower, at £82.8m, so underlying profits rose by a more modest 13 per cent to 14.7p a share - although that was still 2 per cent ahead of consensus forecasts.
Last year's inflows were overwhelmingly driven by Henderson's retail business, particularly in the UK. Top-selling UK retail funds included Henderson UK Property, Henderson Cautious Managed and various European equity funds. Interestingly, given the patchy track record of M&A in the sector, chief executive Andrew Formica noted that over half of inflows last year came from products or managers taken on through the New Star and Gartmore acquisitions.
Management says it remains "vigilant" on costs. Last year, operating expenses rose by £37.9m to £334.6m, but the group managed to maintain its 35.5 per cent operating margin. Analysts at Numis expect pre-tax profits of £217m this year (from £188m in 2014), giving EPS of 16.3p.
| HENDERSON (HGG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 263p | MARKET VALUE: | £3bn | |
| TOUCH: | 262-263p | 12-MONTH HIGH: | 275p | LOW: 180p |
| DIVIDEND YIELD: | 3.4% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 89p* | NET CASH: | £77.7m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 314 | 77 | 9.9 | 6.5 |
| 2011 | 432 | 13 | 3.6 | 7 |
| 2012 | 386 | 77 | 8.2 | 7.15 |
| 2013 | 473 | 107 | 10.1 | 8 |
| 2014 | 538 | 136 | 11.7 | 9 |
| % change | +14 | +27 | +16 | +13 |
Ex-div: 7 May Payment: 29 May *Includes intangible assets of £678m, or 59p a share | ||||
