The group’s interim results, published 30 July, showed net inflows hitting £5.6bn – up 12% on the £5bn recorded in the respective period last year – driven largely by retail investment in its European equities capabilities.
This wave of new money contributed to an operating margin of 36.3%, and has prompted the Henderson board to initiate the repurchasing of £25m in shares during the second half of 2015, despite anticipated market headwinds.
“We remain relatively positive on the market outlook, but are conscious that lingering investor caution during the northern hemisphere summer could affect flows across the industry in the third quarter,” said Andrew Formica, Henderson CEO.
“Nevertheless, Henderson remains well-positioned. With strong sales momentum, increased brand recognition, excellent investment performance and disciplined investment in new initiatives, we are focused on outperforming the market and delivering our ambitious plans for future growth.”
Furthermore, the group’s assets under management experienced growth of 10% in the 12 months to 30 June, rising from £74.4bn to £82.1bn, with Henderson’s underlying profit before tax rising 29% to £117.4m in the same time-frame.
This translated into underlying continuing diluted earnings per share of 8.9p – up 30% on a year previously – and an interim dividend of 3.1p per share payable on 18 September, compared to 2.6p per share 12 months earlier.
Following on from the June acquisitions of Perennial Fixed Interest, Perennial Growth Management and 90 West, as well as the sale of a 40% share in TH Real Estate, Henderson revealed annualised net new money growth of 14% in H1 2015 – though this was down on the 15% recorded in the first half of last year.
In addition, consolidation surplus has resulted in a capital surplus of £113m including dividends and the share buyback, with Henderson’s total cash and equivalents standing at £282.9m against debt of £150m.
