Henderson Group talks up strength in interim results

Henderson Group published its interim results for the six months to 30 June on Thursday, with assets under management up 3% to £95.0bn when compared to the start of the period.

The FTSE 250 firm said net outflows over the six months were £2.0bn, with underlying profit before tax of £100.5m, down from £117.4m a year ago.

Underlying diluted earnings per share also slipped, to 7.1p from 8.9p on 30 June 2015.

At the end of the period, Henderson held capital above regulatory requirements of £105m.

Its board declared an interim dividend of 3.2p per share, up 0.1p from the 3.10p interim dividend in 2015.

The board described “consistently strong” investment performance, with 77% of funds outperforming relevant metrics over three years as at 30 June.

It also said its new investment teams performing well, notably Global Emerging Markets Equity, Henderson Geneva US Small-Cap Growth and US High Yield.

Henderson said it was seeing an increasingly global client base, with around 50% of assets under management being managed for clients outside the UK, up from 30% in 2013.

It remained in a strong financial position, and is now debt free following repayment of £150m in senior notes in March 2016.

Henderson’s board also anticipated minimal operational impact following the UK vote to leave the European Union.

“The first half was dominated by widespread market uncertainty in the run up to the UK referendum,” said chief executive Andrew Formica.

“Clients pulled back from investing in European assets and UK property, particularly after the referendum result, but we saw good demand for absolute return and income generating investment styles.

“Our institutional flows turned positive in the second quarter, with a positive pipeline,” Formica added.

He said that across its retail product range since the end of June, outflows have moderated and investment performance has improved.

“At the midpoint of our five year growth and globalisation strategy, we are a fundamentally stronger business.

“Our new investment teams continue to deliver excellent performance and half of our assets are now managed for clients outside the UK,” Formica explained.

He said the dislocation caused by the UK referendum result demonstrates the importance of continuing to diversify the business.

“Our plan is to stay close to our clients, stay vigilant on costs and stay true to our strategy.

“Outstanding investment management, strong client relationships and growing brand recognition remain the key drivers of future growth,” Formica said.