16th Jul 2009 07:00
Business update, New Star integration and Board of Directors changes
16 July 2009
Business update and New Star integration
Henderson Group plc ('the Group' or 'Company') is today updating the market on its integration of New Star Asset Management Group PLC ('New Star'). It will also provide a business update on the first half of 2009.
Andrew Formica, Chief Executive, will host a webcast/teleconference (see details below) and make the following comments: "Although we saw some welcome stability return to markets in the second quarter of 2009, they remain significantly below the average level of last year. As expected, and as flagged earlier this year, lower markets, combined with fragile investor confidence and demand, have had an adverse impact on our revenues. The prompt action we took to reduce our costs and the benefits of the New Star acquisition for nearly three months have helped to offset some of this impact, but profits will be lower in the first half of 2009. We currently expect the Group to report a profit before tax of between £25 million and £28 million in this period, including one quarter's contribution from New Star, compared to £50.8 million in the first half of 2008.
The integration of New Star is progressing very well and its contribution to Group earnings will increase in the second half with a full period of ownership. We have retained key investment management and distribution staff and stabilised the business quickly. The current management fee run-rate of £48 million and asset retention levels of around 77% are better than expected. In addition, we have reduced the expense ratio of the acquired New Star business to approximately 38%, with effect from 1 July 2009 rather than our previous expectation of 1 January 2010. Positive feedback from independent financial advisers and other distributors, combined with improving investment performance in the key New Star UK retail funds, has significantly strengthened our position in the UK retail market.
Overall, although markets continue to be challenging, we are seeing signs of investor appetite returning and we are in a good position to take advantage of further opportunities."
Henderson Group plc
47 Esplanade
St Helier
Jersey JE1 0BD
Registered in Jersey
No. 101484
ABN 67 133 992 766
Please click on the link below to download a copy of the slides.
http://www.rns-pdf.londonstockexchange.com/rns/7660V_-2009-7-16.pdf
Board of Directors
After 17 years with Henderson Group plc, Toby Hiscock has decided to stand down as Chief Financial Officer ('CFO') and as a Director with effect from 1 September 2009.
Rupert Pennant-Rea, Chairman of Henderson Group, said: "In his long career with the Group, Toby has worked in risk management, finance and operations. He was appointed as CFO in August 2003, just before the demerger from AMP. He has made an outstanding contribution to the Group, and I am pleased he has agreed to remain on the boards of our hedge funds and to join the board of John Laing plc - a key part of our infrastructure business. We wish him well for the future.
I am also pleased to announce a strong internal successor to Toby. Shirley Garrood, our Chief Operating Officer, will become CFO and join the Board in place of Toby. Shirley is a chartered accountant and corporate treasurer and has worked in the City for 30 years. Her experience, leadership skills and knowledge of the Group will ensure a seamless transition."
In addition, the Group today announces the appointment of Robert Jeens to the Group Board. Robert is currently a non-Executive Director of the Royal London Mutual Insurance Society Ltd, T R European Growth Trust PLC and Dialight plc, where he also serves as chairman of their audit committees. T R European Growth Trust PLC is a client of Henderson Group plc. He was previously chairman of nCipher plc and his previous executive roles include group finance director of Woolwich plc, finance director of Kleinwort Benson Group plc and audit partner at Touche Ross & Co.
Commenting on the appointment, Mr Pennant-Rea said: "I am pleased that Robert has agreed to join the Board. We will benefit particularly from his extensive experience of financial services."
These Board appointments are subject to obtaining approval from the FSA under its approved persons regime. Shirley Garrood and Robert Jeens will stand for election at the 2010 Annual General Meeting.
Details of the webcast/teleconference are provided below:
Thursday, 16 July 2009 at 6.00pm (Sydney time)/9.00am (London time)
For a telephone link to the briefing, dial one of the following numbers five to 10 minutes prior to the start of the call:
Conference title New Star integration update
Chairperson Andrew Formica
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From: |
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United Kingdom |
0500 1016 30 (free call) |
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Australia |
1800 9889 41 (free call) |
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All other countries Replay number: United Kingdom Australia |
+44 (0) 20 7162 0077 (this is not a free call) +44 (0) 20 7031 4064 +61 (0) 2 82239748 Access code: 838925 (available from 16 July to 23 July 2009) |
Alternatively, you can listen to a live audiocast of the briefing. To listen to the briefing, go to www.henderson.com and click on 'Corporate' on the home page.
Forward-looking statements
This announcement contains forward-looking statements with respect to the financial condition, results and business of Henderson Group. By their nature, forward-looking statements involve risk and uncertainty because they relate to events, and depend on circumstances, that will occur in the future. Henderson Group's actual future results may differ materially from the results expressed or implied in these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.
Notes to editors
About Henderson Group plc
Henderson Group plc ('Henderson Group' or 'Group') is the holding company of the investment management group Henderson Global Investors ('Henderson'). Henderson Group's principal office is in London and since December 2003 has been dual-listed on the London Stock Exchange and Australian Securities Exchange ('ASX'). Henderson Group is a constituent of the FTSE 250 and S&P/ASX 200 indices. Since 31 October 2008, the Group has been incorporated in Jersey and tax-resident in the Republic of Ireland.
Established in 1934, Henderson is a leading independent global asset management firm. The company provides its institutional, retail and high net-worth clients with access to skilled investment professionals representing a broad range of asset classes, including equities, fixed income, property and private equity. Henderson is one of Europe's largest investment managers, with £53 billion assets under management and employed around 940 people worldwide (as at 30 June 2009).
About CHESS Depositary Interests
In this announcement, the term "shareholders" refers to all holders of Henderson Group plc shares, including those whose holdings are in the form of CHESS Depositary Interests on the Australian Securities Exchange .
CHESS Depositary Interests, or CDIs, are a way of allowing securities of foreign companies to be traded on the Australian Securities Exchange. CDIs afford shareholders all the same direct economic benefits as ordinary shares, like the right to dividends and the right to participate in rights offers.
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Further information
www.henderson.com or
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Investor enquiries
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Mav Wynn, Head of Investor Relations
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+44 (0) 20 7818 5135 or
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+44 (0) 20 7818 5310
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Media enquiries
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Richard Acworth, Head of Corporate Communications
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+44 (0) 20 7818 3010
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United Kingdom: Maitland
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Australia: Cannings
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Brian Cattell/ Rebecca Mitchell
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Pip Green/ Luis Garcia
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+44 (0)20 7379 5151
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+61 (0) 2 8284 9990
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Related Shares:
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