Aberdeen Asset Management's shares rose over 5 per cent on the back of these figures after the asset manager delivered a 44 per cent increase in underlying profits to £301.9m – helped by a significant increase in higher-margin new business.
The better performance came despite a £1.7bn net outflow of funds, which, together with the effects of a tough investment climate, left total assets under management down from £178.7bn to £169.9bn. However, a bulk of the outflows, which came in the last quarter of the financial year, comprised lower-margin segregated mandates and most of the £43bn of gross inflows went into the group's higher-margin pooled funds. This helped boost management fee income by 24 per cent to £739.2m, while performance fee income rose from £30.3m to £36.3m.
Investor demand was especially strong for higher-margin, emerging market debt and Asian fixed-income products, which attracted net inflows of £1.6bn. And while a quiet first-half left the property portfolio nursing net outflows of £0.6bn, momentum started to build through the second half, with £1.2bn of new business wins.
Numis Securities expects 2012 adjusted pre-tax profits of £302.2m and EPS of 18.7p (from £293m and 18.1p in 2011).
| ABERDEEN ASSET MANAGEMENT (ADN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 214p | MARKET VALUE: | £2.4bn | |
| TOUCH: | 213-214p | 12-MONTH HIGH: | 242p | LOW: 164p |
| DIVIDEND YIELD: | 4.2% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 89p* | NET CASH: | £128m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 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 | 126.0 | 8.32 | 7.0 |
| 2011 | 784 | 224.0 | 15.00 | 9.0 |
| % change | +23 | +78 | +80 | +29 |
Ex-div: 14 Dec Payment: 26 Jan *Includes intangible assets of £1.1bn, or 93p a share | ||||
