Some analysts had questioned whether Standard Life Aberdeen (SLA) would be willing – or perhaps even able - to fund its distributions due to wider economic uncertainties, but the asset manager not only maintained its half-year dividend rate, but also confirmed that it was moving ahead with its buyback programme.
Good news for shareholders, but trading metrics show that the naysayers were justified to a large extent. A 13 per cent decline in fee-based revenue fed through to a 30 per cent reduction in adjusted profit, while the group swung to a net earnings loss due to £1.05bn in goodwill impairments and restructuring fees.
Management deserves credit for keeping core costs under control, particularly in view of the measures undertaken in the face of the pandemic. No staff were furloughed, nor did the group access any government support schemes. Despite the inconvenience of having 95 per cent of its staff working from home, the group still managed to launch 18 new funds during the period.
Investment performance remains solid, with 68 per cent of assets under management (AuM) above benchmark over three years, but related news on redemptions levels, net inflows and the level of AuM were all caveated against the £24.9bn tranche of withdrawals by Lloyds Banking (LBG).
Consensus data compiled by FactSet gives adjusted EPS of 13.8p, rising to 16.9p in 2021.
| STANDARD LIFE ABERDEEN (SLA) | ||||
| ORD PRICE: | 263.7p | MARKET VALUE: | £ 5.93bn | |
| TOUCH: | 263.6-263.9p | 12-MONTH HIGH: | 338p | LOW: 170p |
| DIVIDEND YIELD: | 8.2% | PE RATIO: | NA | |
| NET ASSET VALUE: | 258p | NET CASH: | £1.85bn | |
| Half-year to 30 June | Total Income (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 1.68 | 629 | 26 | 7.3 |
| 2020 | 1.36 | -498 | -23 | 7.3 |
| % change | -19 | - | - | - |
| Ex-div: | 20 Aug | |||
| Payment: | 29 Sep | |||
