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Abrdn returned to profit in the first half after the struggling UK asset manager cut costs and sold its private equity business.
The London-listed group on Tuesday reported a first-half profit of £187mn compared with a loss of £169mn a year earlier.
Abrdn has embarked on a significant cost-cutting programme as the group battles a squeeze on fees and a period of sustained outflows. For the first half, outflows slowed to £1.6bn from £4.4bn in the same period last year.
Jason Windsor, interim chief executive, said: “While market conditions remain challenging, we are firmly on track to realise at least £150mn of annualised cost savings by the end of 2025.”
Abrdn has had a turbulent four years in which it has twice been ejected from the FTSE 100 and suffered from a much ridiculed rebranding, when its Standard Life Aberdeen brand was ditched for Abrdn.
Windsor, who was parachuted in as interim chief executive in May when the company announced Stephen Bird’s departure, is poised to take on the role on a permanent basis, although the company gave no update on Tuesday.
“Overall, a solid set of results with both operating profit and net flows beating expectations,” noted analysts at RBC Capital Markets. However, it added that “although abrdn has now, at least partially, addressed its cost base, the deterioration in net flows and fee margins have more than offset this self-help attempt.”
Shares in Abrdn were up almost 4 per cent in early trading.
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