Highlights

  • ABDN’s H1FY24 net operating revenue declined by 7.49% YoY, reaching USD 667 million
  • Adjusted operating profit in H1FY24 rose slightly by 0.79% YoY, totalling USD 128 million
  • The company plans to save GBP 150 million annually by 2025 through cost reductions

abrdn PLC (LSE:ABDN) is an investment company based in the United Kingdom. Its operations are divided into three segments: Investments, Adviser, and Other.

In the first half of financial year 2024 (H1FY24), ABDN’s net operating revenue stood at USD 667 million, reflecting a decline of 7.49% compared to H1FY23. The decrease in revenue was driven by outflows, lower investment margins, and corporate actions, although this impact was partially mitigated by a rise in Adviser revenue.

Adjusted operating profit, on the other hand, saw a slight increase of 0.79%, reaching USD 128 million in the first half, up from USD 127 million in H1FY23. This modest growth was attributed to higher revenue and a temporary GBP 7 million outsourcing discount, which is expected to conclude upon the delivery of the abrdn SIPP.

In H1 FY24, the company achieved an increase in both net margin and operating margin, reaching 24.5% and 26.8%, respectively. This is an improvement compared to net margins of -19% and operating margins of -22.1% in H1 FY23.

AUMA Increase Supported by Positive Market Conditions and Inflows

In an announcement dated 24 October 2024, ABDN reported that its asset under management (AUMA) has risen by 2% year-to-date, reaching GBP 507 billion. This increase was driven by favorable market conditions and net inflows from Interactive Investor. Interactive Investor has shown strong organic growth, with a 6% rise in customers, bringing the total to 430,000. Additionally, AUMA for Interactive Investor grew by 13%. Outflows in investments were primarily due to equities and Insurance Partners. Efforts to transform performance are currently underway to address these outflows. Measures are also being taken to reduce ongoing outflows in Adviser, with a strong focus on enhancing service. The transformation programme is proceeding as planned.

Company Outlook

In H1, the company’s three core businesses made strategic progress. They focused on achieving sustainable growth, despite uncertain market conditions. Key actions include improving investment performance, modernizing platforms, and reducing costs. The company aims to achieve GBP 150 million in annual savings by 2025. Investments are being directed toward growth opportunities. Adviser is strategically repricing, while Interactive Investor is innovating in the UK wealth market.

Stock Performance

The stock price of ABDN was appreciated by around 0.5% in the past month but it has declined by around 10.86% in the past six months. The stock’s 52-week low and high are GBX 131.00 and GBX 183.35, respectively. As of 02 Jan 2025, the stock’s closing price was GBX 140.65.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 02 January 2025. The reference data in this report has been partly sourced from EODHD/Others.