Aberdeen Asset Management's (ADN) shares rose 14 per cent after the asset manager reported that underlying full-year pre-tax profit had jumped 39 per cent to £482.7m. Net cash holdings rose by 60 per cent, too, and shareholders were rewarded with a hefty dividend hike.
The group did see a net outflow of funds from its fixed income side, the Aberdeen solutions business, the property unit and the money market funds - but these were partly offset by a strong net inflow into equity assets. Even so, there was still a net funds outflow of £2.54bn, although this was more than matched by a positive investment performance and, overall, assets under management grew 7 per cent to £200.4bn.
Aberdeen also announced a long-term strategic relationship with Lloyds (LLOY) that will see it acquire the Scottish Widows Investment Partnership business for around £550m, plus up to £100m in growth-related payments. Aberdeen will fund the deal by issuing new shares and the acquired business will add around £136bn of assets under management, with an annualised revenue stream of about £234m.
Broker Numis Securities has its forecasts under review pending further clarity on asset retention following the acquisition - but it currently expects adjusted pre-tax profit of £497.5m for 2014, giving adjusted EPS of 32.5p (from 32.5p in 2013).
| ABERDEEN ASSET MANAGEMENT (ADN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 487p | MARKET VALUE: | £5.84bn | |
| TOUCH: | 486-487p | 12-MONTH HIGH: | 495p | LOW: 327p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 95p* | NET CASH: | £427m | |
| Year to 30 Sep | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 0.42 | 11.0 | -1.70 | 6.00 |
| 2010 | 0.64 | 126 | 8.30 | 7.00 |
| 2011 | 0.95 | 224 | 15.0 | 9.00 |
| 2012 | 1.05 | 270 | 18.9 | 11.5 |
| 2013 | 1.31 | 390 | 27.2 | 16.0 |
| % change | +25 | +44 | +44 | +39 |
Ex-div: 4 Dec Payment: 24 Jan *Includes intangible assets of £1bn, or 86p a share | ||||
