Henderson shares leap 9% on H1 profit surprise

Henderson shares have risen by almost 9% after the group said it expected underlying H1 profit to come in at around £100m, ahead of market expectations.

The group said that estimate, for the six months to 30 June, included expected performance fees of around £57m. The update sent shares up 8.6% to 175p by mid-morning.

Broker Numis, which rates the stock a hold with a price target of 157p, said both figures were well ahead of its expectations of £82.2m underlying profit and £24m in performance fees.

Henderson, due to announce half-year results on 8 August, previously reported an “encouraging result” for its retail business in Q1 2013 after enjoying its first net retail inflows since 2011.

The group – headed by Andrew Formica (pictured) – has seen year-to-date share price gains of 32%, with this morning’s jump erasing most of the losses suffered over the past month as market volatility hit asset manager share prices.

Today’s move, coupled with a 1.1% rise in the FTSE 100 to 6,520, has helped push large-cap asset managers higher.

Schroders rose 2.8% to £23.90, with Aberdeen up 2.8% to 396p, though the latter remains some way below year-to-date highs as a result of recent nervousness over the investment case for emerging markets.

Elsewhere, miners made the strongest gains in the morning session but the biggest riser was RBS, up 4.7% at 302.6p. The stock is now up 9% this week as it regains some of the ground lost during a tumultuous June.


This article was first published on Investment Week

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