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(Alliance News) - abrdn PLC on Tuesday reported a swing to a interim loss and lowered its outlook, saying it feels the current market volatility will see the asset manager take longer to hit its revenue growth and cost-to-income ratio targets.
abrdn shares were down 2.9% to 168.00 pence on Tuesday morning in London.
abrdn's Investment unit ended the first half ended June 30 with assets under administration of GBP386 billion, sinking 17% from GBP464 billion at the same point a year prior. It recorded GBP37.3 billion in net outflows.
The Edinburgh-based company booked a GBP320 million loss in the six months to June 30 versus a GBP113 million profit achieved a year prior. Fee-based revenue fell 8% to GBP696 million from GBP755 million, and its cost-to-income ratio worsened to 83% from 79%.
The firm left its interim dividend unchanged at 7.3 pence. It also confirmed its dividend policy remains unchanged. abrdn said it has launched a GBP150 million share buyback as part of its GBP300 million shareholder return programme.
abrdn it is aiming for net cost savings of around GBP75 million in the investments sector to 2024, "comprising gross cost savings of around GBP150 million and around GBP75 million investment in future growth and inflation".
abrdn also scaled back its outlook. "Current market uncertainty means our ambitions for revenue growth and improved cost/income ratio are likely to take longer than originally expected," it explained.
"The half-year group results largely reflect the challenging global economic environment and market turbulence," Chief Executive Officer Stephen Bird said.
"When I became CEO in late 2020, I said that we would pursue a strategy of diversification by refocusing our Investments business in to areas of strength, where we have scale and that lean into global growth trends and also significantly expand our reach into the higher growth UK wealth market. We are doing exactly that," Bird added.
He pointed to the acquisition of retail investment platform interactive investor. abrdn said ii performed ahead of its profit expectations in the first half and is on track for double-digit earnings accretion based on adjusted diluted earnings per share.
abrdn bought the Manchester-based subscription-based online investment service firm ii for GBP1.49 billion, completing the deal in May.
By Tom Budszus; tombudszus@alliancenews.com
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