Henderson promotes equities
Fund firm Henderson Group yesterday said that chief executive Roger Yates is to stand down in November.
The news was announced along with the group’s interim results, in which it reported a 16 per cent fall in profit and confirmed its plans to cut its tax rate by relocating to Ireland.
First-half pre-tax profit for the holding company fell to £50.8m from £60.5m in the same period of 2007. The drop is due to a £1.6m swing in the interest line, and a one-off debt of £170m taken on by the group in May 2007 in order to pay shareholders’ capital return.
However, major subsidiary Henderson Global Investment reported pre-tax operating profit £60.6m, similar to the £61.4m achieved in the first half of 2007, and earnings per share of 12 per cent.
Yates will be replaced by head of equities Andrew Formica, who will also join the board in November.
Yates said: “Depending on how kind you are, you could either say that I am leaving at a time of record earnings per share, or at a time when group operating profit is down by 16 per cent. The acid test is the shareholder response, which has been very positive so far.”
The company is on target to match its 2007 operating profit of £109.6m, as expected, despite what it described as “extremely hostile” economic environment. Henderson shares closed up 1 per cent at 122.25p.