Henderson’s profits drop 88%

Henderson’s after-tax profits fell 88% last year, to £146,000 from £1.2m in 2010.

The profit drop was caused by the tough economy and Henderson investing heavily in its business, causing administrative expenses to shoot up to £19.6m from £15.8m, according to latest filed accounts in the year ending 30 April 2011.

Henderson showed solid growth in its turnover, improving to £20.2m from £17.3m.

The independent broker’s interest payments and similar charges increased from to £186,213 from £133,898.

The company said, in its review of the business: “The directors are satisfied with the results for the year, turnover has increased 16% to £20.2m. Post tax profits fell in the year as a consequence of the worsening economy and investing in both the existing and newly acquired businesses. The directors are confident this investment in conjunction with a completed comprehensive review of the group’s overheads will lead to both growth and increased profitability in the years ahead.”

Henderson was unavailable for comment.