Gartmore gains in stiffer market

GARTMORE, the fund management group that floated on the stock market last November, almost doubled pre-tax profits in the first half from pounds 9.6m to pounds 17.5m, writes Peter Rodgers.

However, tougher markets meant it attracted only pounds 1.4bn of new business, including pounds 600m of pension fund money, compared with pounds 2.3bn a year earlier.

Sagging markets left total funds under management pounds 1bn lower than in December at pounds 20bn. Paul Myners, chairman, said the first dividend since the listing would be 1.75p a share. In the prospectus the company said it expected to pay a third of its annual dividend at the interim stage.

The shares fell 6p to 173p, 5p above the flotation price.