A strong equity market helped to boost assets under management (AUM) by nearly 9 per cent to £185bn for
Demand was strongest for the group's equity products, notably emerging markets and Asia Pacific equities, and net new business inflows totalled £4.9m. However, funds were drained from Aberdeen's other offerings, leaving an overall net outflow of £0.4bn. But, once again, inflows were into higher-margin business, and fees from recurring income rose from £367m to £396m, although performance fees were trimmed from £19.1m to £17.4m. Crucially, average fees on new business were higher than on existing AUM, which helped to push the blended average management fee rate up from 41.2 to 43.9 basis points.
Investec Securities is forecasting full-year adjusted pre-tax profits of £329m and EPS of 20.4p (up from £301m and 18.8p in the 12 months to September 2011), rising to £378m and 23.6p, respectively, the following year.
|ABERDEEN ASSET MANAGEMENT (ADN)|
|ORD PRICE:||280p||MARKET VALUE:||£3.2bn|
|TOUCH:||279-280p||12-MONTH HIGH:||283p||LOW: 164p|
|DIVIDEND YIELD:||3.4%||PE RATIO:||17|
|NET ASSET VALUE:||88p*||NET CASH:||£126m|
|Half-year to 31 Mar||Turnover (£m)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
Ex-div: 9 May
Payment: 14 Jun
*Includes intangible assets of £1.03bn, or 90p a share
Aberdeen continues to attract higher-margin work, cash flow is strong and profits are growing strongly. This not only supports a progressive dividend policy, but the shares offer value priced on 12 times next year's earnings estimates. Long-term buy.
Last IC view: Good value, 214p, 5 Dec 2011