Fund manager Henderson performed much better last year than the headline figures suggest. So while reported pre-tax profits were down sharply, adding back exceptional costs – including those relating to the acquisition of Gartmore – and underlying pre-tax profits jumped 58 per cent to £159m, helped by a nine-month contribution from Gartmore.
The better performance was driven by a 28 per cent rise in net management fees to £360m and an increase in performance fee income from £42.8m to £65.2m. And while some equity funds underperformed, fixed-income products delivered solid returns. In fact, on a rolling three-year basis, around two-thirds of funds met or exceeded their benchmarks.
However, continued uncertainty in financial markets instilled a note of caution among retail and institutional investors. And while assets under management (AUM) rose by £2.67bn to £64.3bn, this included a £15.7bn contribution from Gartmore. In fact, negative currency and market movements reduced funds by £2.7bn, there were retail net outflows of £1.4bn and institutional outflows were even higher at £4.7bn. On the property side, AUM grew by £598m to £12.4bn through a combination of positive market movements and a net inflow of funds.
Broker Numis Securities is forecasting 2012 EPS of 11.9p (12.4p in 2011).
| HENDERSON (HGG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 127p | MARKET VALUE: | £1.4bn | |
| TOUCH: | 126-127p | 12-MONTH HIGH: | 177p | LOW: 93p |
| DIVIDEND YIELD: | 5.5% | PE RATIO: | 35 | |
| NET ASSET VALUE: | 71p* | |||
| Year to 31 Dec | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|
| 2007 | 147.2 | 16.4 | 6.10 |
| 2008 | -17.0 | -3.2 | 6.10 |
| 2009 | 15.5 | 1.8 | 6.10 |
| 2010 | 76.5 | 9.9 | 6.50 |
| 2011 | 13.0 | 3.6 | 7.00 |
| % change | -83 | -64 | +8 |
Ex-div: 2 May Payment: 25 May *Includes intangible assets of £765m, or 69p a share | |||
