6th Aug 2024 09:57
(Alliance News) - abrdn PLC on Tuesday reported an upturn in funds under management in the first half of 2024 as it disclosed an improved picture on fund flow within its business.
In the six months to June 2024, the Edinburgh-based investment firm said assets under management and administration climbed 2.3% to GBP505.9 billion from GBP494.4 a year ago. This reflected positive market movements and flows, abrdn said. Net inflows of GBP800 million compared with GBP5.2 billion outflows a year before.
abrdn swung to pretax profit of GBP187 million from GBP169 million loss a year prior. Net operating revenue fell 7.5% to GBP667 million from GBP721 million.
Pretax profit includes the gain on sale of the European-headquartered private equity business of GBP88 million and lower losses of GBP15 million from the reduction in the value of listed stakes held on the balance sheet. In the year prior, these losses amounted to GBP181 million.
"Each of our three core businesses have made progress against their strategic objectives in the first half, and our focus on returning to profitable and sustainable growth is showing some early signs of success. However, while we have seen an improvement in market conditions in the first half, the outlook for global financial markets remains uncertain," the company said in a statement.
Adjusted operating expenses reduced by 13% to GBP372 million from GBP427 million, reflecting cost savings across both staff and non-staff expenses.
The firm said it was on track to realise GBP150 million of annualised cost savings by the end of 2025.
The company said outflows in Adviser are still "elevated" at GBP2.0 billion in the first half compared with GBP600 million a year prior. abrdn said it was taking action to address this.
Interim Chief Executive Officer Jason Windsor said: "In the first half of the year we have made an encouraging start as we become more efficient, and we enhance our propositions to lay the foundations for growth."
"We have three core businesses, with strong, scale positions in attractive markets and each has headroom to grow."
The interim dividend was maintained at 7.3 pence per share.
Shares in abrdn rose 3.5% to 165.65 pence on Tuesday morning.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights reserved.
Related Shares:
Abrdn