News and Press
| Date: | 21st December 2005 |
| Title: | Sale of Towry Law UK |
| Author: | Henderson Group plc |
| Download: | pdf version |
Sale of Towry Law UK
Henderson Group today announces that it has entered into an agreement
to sell Towry Law UK (Towry Law) to JS&P Holdings Limited (JS&P), subject
to UK regulatory approval. Towry Law is a standalone independent financial
adviser and general insurance broker. Henderson Group will retain Towry
Law International, which is no longer actively trading.
On completion of the sale (anticipated in March 2006) Henderson Group
will receive £37m in cash. At 30 June 2005, Towry Law was held at £25.2m
in the Henderson Group accounts, comprising goodwill of £21.5m and net
tangible assets of £3.7m. In the first half of 2005, Towry Law recorded
a profit before tax of £1.6m.
Part of the sale proceeds will be contributed to the Henderson Group
Defined Benefit Pension Scheme, which will retain the defined benefit
pension liabilities of the past and present Towry Law employees accrued
to the date of completion. The balance of the proceeds will be added
to the net liquid resources of Henderson Group. An update on Henderson
Group capital will be provided to the market on 28 February 2006, when
the Group announces its full-year 2005 results.
Towry Law operated as a standalone business in Henderson Group and its
contribution to Group profits was not material. This sale will have
no material impact on the continuing operations of Henderson Group.
All Towry Law staff, apart from John Simmonds (Managing Director of
Towry Law), will transfer with the business on completion of the sale.
Commenting on the sale, Henderson Group Chief Executive, Roger Yates,
said: 'Having succeeded in developing Towry Law into an effective standalone
business, we evaluated a number of options together with the management
team of Towry Law. Our conclusion is that Towry Law will be better supported
by a parent with a greater strategic interest in developing the business
further. Towry Law management have done an excellent job of returning
the business to profit in a relatively short space of time.'
JS&P Executive Chairman, Andrew Fisher, said: 'The combined strength
of Towry Law and JS&P will create a significant and powerful force in
the professional financial services advice sector. We are very excited
about the transaction and the prospects for the larger group.'
Mr Yates added: 'We stated at the time of listing in December 2003 that
the strategic focus of Henderson Group would be the development of Henderson
Global Investors as a leading international investment management business.
This sale delivers value to Henderson Group shareholders and will allow
us to become, once again, a pure independent fund manager.'
Henderson Group plc
4 Broadgate
London EC2M 2DA
Registered in England
No. 2072534
ABN 30 106 988 836
Outlook for the full year 2005
We have made steady progress in Henderson Global Investors (Henderson)
in the second half of 2005. Henderson continues to benefit from the
sale of higher margin products, which is expected to offset revenue
lost from lower total assets under management during 2005, and it remains
on track to achieve an annualised cost-to-income ratio target of 75%
in the short-term.
As we have indicated previously, total assets under management for Henderson
are expected to be slightly lower at 31 December 2005 compared to 30
June 2005, due to expected client outflows associated with the run-off
of Pearl Group funds and Henderson's institutional business.
Corporate costs are anticipated to be lower in the second half compared
to the first half of 2005, as a result of lower shareholder servicing
and staff costs. In addition, due to higher returns on corporate cash,
Corporate is expected to approximately breakeven for the year.
In summary, Henderson Group is performing in line with the Board's expectations
and is currently on track to meet its published targets for the full
year 2005.
Notes to editors
Information on Towry Law
Towry Law comprises an independent financial advisory business and insurance
broking business, offering products and services to individuals and
corporate clients in the UK. It has continued to show a steady improvement
in performance throughout 2004 and 2005, recording a £1.6m profit in
the first half of 2005 compared with a £0.1m loss in the first half
of 2004.
Information on Towry Law International
In May 2004 Henderson Group announced the closure of the operations
of Towry Law International to new business. Towry Law International
(including Towry Law (Asia) HK Limited, which will remain a subsidiary
of Henderson Group) continues to work with the Hong Kong Securities
and Futures Commission and other relevant regulators to ensure that
all legacy product issues are dealt with appropriately.
Information on JS&P
JS&P is a privately owned wealth manager offering independent financial
advice, investment management and employee benefits consulting to clients
on a national basis. It was established in 1964 and acquired in 2003
by private equity funds managed by Palamon Capital Partners, LP, a firm
investing across Europe. JS&P is based in Marlow UK, with offices
in the City of London, Bristol, Edinburgh, Glasgow and Aberdeen.
Further information
www.hendersongroupplc.com
or
Investor enquiries
Mav Wynn
Henderson Group plc
Head of Investor Relations
+44 (0)20 7818 5135
investor.relations@henderson.com
Henderson Group media enquiries
United Kingdom - Finsbury
Andrew Mitchell
+44 (0)20 7251 3801
Australia - Cannings
Graham Canning
+61 2 9252 0622
Other media enquiries
Fiona Cornes
Towry Law UK
Public Relations Director
+44 (0)7769 880 704
Fiona.Cornes@TowryLaw.com
Andrew Fisher
JS&P Holdings Limited
Executive Chairman
+44 (0)7736 908 764
andrew.fisher@jsandp.com
Miles Cresswell-Turner
Palamon Capital Partners
Partner
+44 20 7851-9900
cresswellturner@palamon.com,
Fenchurch Advisory Partners Limited (Fenchurch)
Fenchurch is acting as sole financial adviser to Henderson
Group in relation to the transaction.
This information is provided by RNS
The company news service from the London Stock Exchange