Henderson reveals bumper profits amid £70m Gartmore costs

Henderson Global Investors is raising its dividend after reporting a 58% profits jump in 2011, even with the cost of the Gartmore integration impacting results.

The asset manager, the sixth largest by AUM in the UK market, said in its full year results the total acquisiton and integration costs of the Gartmore takeover came in at £69.7m before tax, although this fell to £34.5m after tax and other benefits.

This was on top of the cost of the deal itself, completed in April last year, of £365.4m. However, Henderson said the deal itself had ‘exceeded all expectations’ with the group holding onto 85% of Gartmore’s AUM post takeover, as well as acquiring an operating margin above 50%.

Overall the group reported underlying profits before tax jumped to £159.2m, from £100.7m the previous year, off revenues which jumped 32%, while assets under management climbed £2.7bn to £64.3bn.

Underlying profits were at the upper end of guidance the group gave to the market.

The group also upped its dividend from 6.5p per share to 7p.

Chief executive Andrew Formica (pictured) said: “Henderson has delivered a strong set of results in 2011 in what were challenging market conditions.

“The acquisition of Gartmore has exceeded our expectations on all counts and made a significant contribution to these results.

“We also made good progress in our key strategic objectives, growing our retail and absolute return businesses and selling a number of non-core assets. We have succeeded in driving efficiencies in the group, while continuing to invest in the business.”


This article was first published on Investment Week


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