Henderson sees profits jump 79%

Henderson has reported a 79% increase in profit before tax for the first six months of 2010.

The firm made £48.5m of underlying profits before tax for the first half of the year, compared to £27.1m in the first half of 2009.

However, the group has reported a fall in assets under management in the first half of 2010. At June 30, Henderson had £56.4 billion assets under management—down from £58.1 billion at the end of December 2009. The group did see a net inflow of £1 billion in higher margin products in the first half of 2010.

The group’s operating margin grew from 16% to 29.1%, a rise which it attributes to improved markets in the first half of the year as well as the benefits of the New Star Asset Management acquisition made in April 2009.

Andrew Formica, Henderson chief executive, would not comment on industry speculation that the group was planning to make a bid for rival fund manager Gartmore. He says there a number of interesting opportunities in the market place, pointing to interest in both America and Asia. (article continues below)

Formica also says the firm is looking to expand its product range in the property, hedge fund and absolute return space.

Notwithstanding the challenges faced by markets and by the industry, he says Henderson is well positioned to launch new products and to continue to grow its business in all the channels and geographies where it operates.