Aberdeen Asset Management sees bumper profits

Date: Monday 05 Dec 2011

Aberdeen Asset Management has seen significant growth in revenues and profits in the full year to the end of September although assets under management have dropped as a result of the Eurozone crisis.

Underlying pre tax profits grew 44% from £210m in 2010 to £301.9m in 2011. These came from revenues of £784m (2010: £638.2m).

The assets under management figure, however, is not quite as rosy. It’s 5% down on the year end figure of 2010, at £169.9bn compared to £178.7bn. Investors have taken out £1.7bn more than they have put into Aberdeen in 2011.

In today’s statement Aberdeen’s chairman, Roger Cornick, notes operating costs have grown 14% during the year and “remain a key area of focus”. The increase in expenses has come from an increased headcount and a boost in marketing, not the least of which has been becoming the main sponsor for Cowes Week, the high profile sailing regatta.

Final dividend will be 5.2p, making the full year figure 9p per share, up from 7p in 2010.

Aberdeen has also spent £98m buying shares to negate dilution from share-based remuneration.

Net cash stands at £127.5m, up from a net debt figure of £7.7m at year end of 2010.

Martin Gilbert, Aberdeen’s chief executive, commented on the results: "This is an excellent set of figures, particularly at a time when volatility and uncertainty continue to depress financial markets around the world.”

Shares in ADN were up 3.59% just after the open.

BS

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