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Highlights

  • abrdn reported a 7.5% YoY decline in H1FY24 net operating revenue to GBP 667 million
  • Interactive investor's net inflows nearly doubled to GBP 5.7 billion in Q4, contributing to a 3% AUMA growth
  • abrdn aims to reduce 2024 operating costs below GBP 1,075 million, targeting GBP 150 million in savings by 2025

 abrdn PLC (LSE:ABDN) is a UK-based investment company offering global asset management solutions, alongside platform services for a wide range of customers. The company is operating across three segments: Investments, Advisor, and Other.

H1FY24 Financial Update

In the first half of the financial year 2024 (H1FY24), abrdn reported a net operating revenue of GBP 667 million, a 7.5% YoY decrease from GBP 721 million in H1FY23, reflecting a decline of GBP 54 million. This decrease was primarily driven by net outflows and changes in asset mix, which lowered the Investment margin. However, the other margin benefited from the Phoenix arrangement, increased trading and FX activity, and higher treasury income.

Market movements contributed an additional GBP 11 million, while corporate actions had a net impact of GBP 22 million. Performance fees in the Asia Pacific and emerging markets regions saw a decline of GBP 4 million, further impacting the overall revenue. These factors collectively influenced the year-on-year reduction in net operating revenue for the period.

Recent Business Update

On 21 January 25, abrdn provided its 4Q2024 AUMA and flows trading update, revealing a 3% growth in AUMA to GBP 511 billion, driven by positive markets and net inflows. The investments segment saw a GBP 0.5 billion net inflow in Q4, while interactive investor's net inflows nearly doubled to GBP 5.7 billion. Adviser AUMA rose by 2%. The company’s cost transformation is progressing well, with over GBP 100 million in savings, and profitability aligns with expectations.

Company Outlook

abrdn states that its three core businesses are making steady progress toward their strategic objectives, with initial indications of profitable growth. Despite ongoing market uncertainty, the company is enhancing investment performance, modernising its platforms, and driving cost reductions. The Investments segment is concentrating on growth opportunities, while Adviser is focused on boosting competitiveness, and interactive investor is in the process of expanding. Efforts to improve cost efficiency aim to lower 2024 operating costs to below GBP 1,075 million, with a target of achieving GBP 150 million in savings by 2025.

Top 10 Shareholders

The top 10 shareholders of ABDN collectively account for approximately 32.94% of the total shareholdings in the company. Silchester International Investors, L.L.P. holds the largest stake with around 9.56%, followed by M&G Investment Management Ltd. with approximately 6.39%, as shown in the chart below:

Stock Information

The stock price of ABDN has risen approximately 4.68% over the past month and 8.43% in the last six months. It has a 52-week low of GBX 130.50 and a high of GBX 174.15, currently trading above the average of these values. As of 03 March 2025, the stock closed at GBX 162.00.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 03 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

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Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.