Aberdeen Asset Management took full advantage of the improvement in financial markets, pushing profits ahead sharply and increasing assets under management from £146bn to £178bn. What's more, cash generation was extremely strong, with 115 per cent of operating profits converted to operating cash flow. Consequently group debt has been virtually cleared and it is expected to move to a net cash position shortly.
New business wins rose to record levels, thanks primarily to demand for global emerging market investments. Total gross inflows rose 144 per cent to £46.6bn, and while there was a £44bn outflow of lower-margin funds, the rate slowed as the year progressed. The group has also benefited from acquiring more funds from the Bank of Scotland, thus facilitating an entry into new markets such as fund of hedge funds.
Operating expenses did increase sharply, up 28 per cent after the inclusion of a full-year of costs relating to the acquisition of ex-Credit Suisse business and the Bank of Scotland transaction, but with revenues rising over 50 per cent, margins improved from 22.7 per cent to 34.8 per cent and underlying operating profits more than doubled from £95.7m to £222m.
Numis Securities is forecasting 2011 adjusted pre-tax profits of £256m and EPS of 16.4p, up from £210m and 13.3p, respectively, last year.
| ABERDEEN ASSET MANAGEMENT (ADN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 179p | MARKET VALUE: | £2.0bn | |
| TOUCH: | 178-179p | 12-MONTH HIGH: | 192p | LOW: 111p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 85p* | NET DEBT: | 1% | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 302 | 31.6 | 6.68 | 3.0 |
| 2007 | 348 | 24.0 | 3.50 | 5.0 |
| 2008 | 430 | 61.0 | 4.60 | 5.7 |
| 2009 | 422 | 10.5 | -1.71 | 6.0 |
| 2010 | 638 | 125.6 | 8.32 | 7.0 |
| % change | +51 | - | - | +17 |
Ex-div: 8 Dec Payment:27 Jan *Includes intangible assets of £1.1bn, or 99p a share | ||||
