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 £505.9 billion from £494.4 a year ago. This reflected positive market movements and flows, abrdn said. Net inflows of £800 million compared with £5.2 billion outflows a year before.
abrdn swung to pretax profit of £187 million from £169 million loss a year prior. Net operating revenue fell 7.5% to £667 million from £721 million.
Pretax profit includes the gain on sale of the European-headquartered private equity business of £88 million and lower losses of £15 million from the reduction in the value of listed stakes held on the balance sheet. In the year prior, these losses amounted to £181 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 £372 million from £427 million, reflecting cost savings across both staff and non-staff expenses.
The firm said it was on track to realise £150 million of annualised cost savings by the end of 2025.
The company said outflows in Adviser are still ‘elevated’ at £2.0 billion in the first half compared with £600 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.
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