Henderson posts £3m loss in first half

Henderson made a pre-tax loss of £3.1m in the six months to 30 June, compared to a £41.6m profit in the first half of the year, partly due to Gartmore-related expenses.

Gartmore employee share awards and other charges were responsible for a £37.8m reduction in underlying profits.

Underlying profit before tax rose from £48.5m to £86.4m over the reporting period.

Assets under management increased from £61.6bn in December 2010 to £74.4bn in the first half.

Henderson’s retail range saw a £575m new inflow, driven by Henderson and Gartmore absolute return funds, although this was offset by a £300m net outflow from Gartmore retail funds.

The firm’s interim dividend per share grew 5% to 1.95p per share, while total fee margin improved in H1 due to higher transaction and performance fees and three months' revenue from Gartmore.

Chief executive Andrew Formica said: "The first six months of this year have been busy for both the group and for markets. I am pleased that throughout this period we have produced a solid set of results with revenues increasing by 40%, underlying profit by 80% and EPS by 60%.

“While the acquisition of Gartmore dominated our efforts in the first half, the Henderson business continued to perform well. The integration of Gartmore is exceeding our expectations.

“Looking at the recent turmoil in markets, we are managing the business on the assumption conditions remain challenging in the short to medium term.

“However, given our hard work over the past few years, which has strengthened our business and client offerings, we are better equipped to weather this volatility. We will invest selectively in our business to ensure we deliver the best product and best service to our clients while we continue to manage our cost base actively."