7th Aug 2018 08:32
LONDON (Alliance News) - Standard Life Aberdeen PLC on Tuesday reported a drop in first half earnings as net fund outflows continued.
The fund manager, which was formed as a result of a merger between Standard Life PLC and Aberdeen Asset Management PLC, recorded assets under management and administration from continuing operations of GBP610.1 billion as at June 30, down 2.6% from GBP626.5 billion as at December 31. Net fund outflows from continuing operations totalled GBP16.6 billion versus GBP12.4 billion outflows recorded in the comparative year ago period.
Adjusted pretax profit from continuing operations - a key profit measure for the company - for the interim period totalled GBP311 million, down 12% than GBP355 million recorded a year ago. The drop was attributed to lower fee-based revenue, which reduced by 7% to GBP966 million.
Pretax profit for the interim period was GBP127 million, up 35% from GBP94 million in the year ago period, on a total income of GBP1.08 billion and GBP655 million, respectively. The rise was attributed to inclusion of profit from Aberdeen Asset Management.
The Scottish company declared a 7.30 pence per share, up 4.3% from 7.00p paid a year ago. It also intends to initially buyback GBP175 million worth of shares in the next few days, as part of its previously announced GBP1.75 billion capital return.
Standard Life Aberdeen said market conditions remain challenging, but the company remains well placed to take advantage of opportunities and to deal with challenges. It continues to make good progress on its integration programme and is now targeting over GBP350 million in savings.
Shares in the company were trading 2.2% higher at 313.40 pence each on Tuesday morning.
Related Shares:
SLA.L