Aberdeen reported a pre-tax profit of £251 million for 2024 as it flagged an improved performance by its troubled investment business, with net outflows from its funds decreasing by 94% to £1.1 billion.
It reported that interactive investor, its ‘do-it-yourself’ investment platform, saw a 2% increase in operating profits to £116m, and there was a 7% rise in profits at Adviser, which provides products to independent financial advisers, to £126m.
The results would appear to vindicate the strategy pursued by Mr Windsor since he was appointed permanent successor to Stephen Bird in September. Mr Windsor moved quickly to shake up Aberdeen’s leadership team to boost its flagging performance, and promoted asset management veteran Xavier Meyer in November to chief executive of Investments.
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The name change to aberdeen may be seen as a significant snub predecessor Mr Bird, who came in for heavy criticism when he changed the name of the institution to abrdn from Standard Life Aberdeen in 2021.
Mr Windsor said: “The group grew profit in 2024 for the first time in three years, with each business increasing its contribution. As our momentum shifts to growth, we have a clear focus on improving client experience and shareholder returns. We have strengthened and streamlined our senior leadership team and, with our sharper focus, we are committing to better results again in 2025 and 2026.”
Mr Windsor also announced new targets for 2026 had been set that “underline the potential for the profitable growth we see in all of our businesses”.
The group is aiming to increase adjusted operating profit to at least £300m in its 2026 financial year, an increase of at least 18% on 2024. It also expects net capital generation to increase to around £300m in 2026, up 26% on 2024.
Mr Windsor added: “Together with active capital management – and by further lowering restructuring spend- we are able to maintain the historic dividend per share from materially higher, and sustainable capital generation.
“This is a group to be proud of, with a promising future. We will deliver by looking forward with confidence and removing distractions. To that end, we are changing our name to aberdeen group plc. This is a pragmatic decision marking a new phase for the organisation, as we focus on delivering for our customers, people and shareholders.”
John Moore, senior investment manager at RBC Brewin Dolphin, said: “Today’s results from abrdn build on the optimism offered by its last update, with the company on a surer footing.
“There are signs the simplified and more focussed strategy is beginning to bear fruit, in the form of much-improved profitability and lower outflows. interactive investor remains the jewel in the crown among abrdn’s divisions, but there are tentative signs of a turnaround in other areas too, potentially providing a bit more balance and stability to the group.
“The new targets indicate a level of confidence and there is a growing sense of momentum behind abrdn, which should bode well for the future.”
Shares were trading up 10.37% or 16.8p at 178.8p at around 10.30am.
