26th Feb 2014 12:42
LONDON (Alliance News) - Henderson Group PLC Wednesday said it made record profits in 2013 on significant increases in both the retail and institutional assets it manages, after a turnaround in the company's retail business.
Pretax profits rose by 24% to GBP127.4 million from GBP102.7 million in 2012, boosted by a 14% increase in net fee income to GBP461.3 million from GBP406.3 million.
The FTSE 250 investment manager's net fees income rose thanks to increases in management fees and performance fees received, though transaction fees declined. The difference between growth in pretax profits and in net fee income can be ascribed to a slower increase in expenses from continuing operations than in net fees, as well as a GBP20.1 million contribution from discontinued business.
Expenses from continuing operations rose by 6.6% to GBP366.0 million.
Assets under management rose to GBP75.2 billion from GBP65.6 billion at the end of 2012. Henderson's retail business received a net inflow of GBP2.5 billion in the fourth-quarter, up from GBP1.3 billion in the third-quarter.
In a conference call with journalists, Chief Executive Andrew Formica said he expects Henderson to have a "truly global" footprint and infrastructure by 2018. He said the aim is to double assets under management to about GBP150 billion by 2018, which will be done through market appreciation and some bolt-on acquisitions in Australia and Asia.
He said Henderson is targeting a deal in the US to add to the diversity of business it offers.
Henderson raised its full-year dividend to 8.00 pence from 7.15 pence.
Henderson shares were Wednesday quoted at 245.00 pence, up 2.20 pence, or 0.9%.
By Samuel Agini; [email protected]; @samuelagini
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