Underlying pre-tax profit down 8.0 per cent at Henderson Group

Underlying profit before tax decreased by eight per cent to 146.5m pounds in the full year to December 31st at asset management house Henderson Group.

Underlying profit before tax decreased by eight per cent to 146.5m pounds in the full year to December 31st at asset management house Henderson Group.

The company reported that this was primarily due to lower performance and transaction fees, partially offset by a decline in variable staff compensation and continued cost control.

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As a result, the company said that the operating margin saw a slight decline from 36.3% to 36.0% and the compensation ratio reduced from 41.6% to 41.1%.

Underlying profit post tax was stable, but an increase in the average number of shares in issue resulted in lower diluted earnings per share of 11.7p from 12.4p.

The company reported that the "decline in diluted earnings per share from 12.4p in fiscal year 2011 to 11.7p in fiscal year 2012 was due to lower underlying profit and a higher average share count, partly offset by a lower effective tax rate".

Profit before tax rose to £96.2m from £13.0m one year earlier.

Commenting on the results, Andrew Formica, Chief Executive Officer of Henderson Group, said: "Political and economic uncertainty and the resultant market volatility during 2012 created a challenging sales environment for Henderson. Nonetheless, we remained focused on delivering excellent returns and service to our clients and I am pleased with the continued delivery of strong investment performance.

"We have maintained our rigorous cost discipline and as a result, the financial strength of the business has continued to improve, clearly visible in our balance sheet as we start 2013 in a net cash position.

"By simplifying and streamlining some parts of our business we were also able to make a number of investments which will result in Henderson being a more global business with stronger investment and distribution capabilities. Given all we achieved in 2012, and how we have positioned the business for the year ahead, I am confident about our outlook."

Henderson Group's share price was down 3.88% to 153.60p at 08:35 on Wednesday.




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