Aberdeen pre-tax profit jumps 44% despite AUM fall

Pre-tax profit at Aberdeen Asset Management rose by 44% in the 12 months to the end of September even as net new business dropped by £1.6bn over the same period.

Aberdeen posted a rise in pre-tax profit from £210m to £301.9m as revenue rose from £638.2m to £784m over the 12-month period, with a final dividend of 5.2p per share pushing the full-year dividend up to 9p from 7p in 2010.

The fund manager also saw a turnaround in its cash position over the course of the year, transforming net debt of £7.7m in 2010 into net cash of £127.5m by 30 September 2011.

"We remain committed to growing the business organically and focusing on operational excellence. This approach has seen us strengthen our balance sheet considerably, and position the business to perform in these demanding economic conditions," said chief executive Martin Gilbert (pictured).

Volatile markets and net outflows meant assets under management shrank by £178.7bn to £169.9bn over the same period, but Aberdeen said gross new business was principally within its higher-margin pooled funds segment, with the mix of overall flows having a positive effect on revenues.

Pooled funds saw net inflows of £5.7bn over the 12 months to 30 September, but this was offset by £7.4bn of net outflows from segregated business.

On an asset class basis, Aberdeen saw net flows of £9bn into equities, but net outflows of £4.8bn from fixed income and £3.2bn from alternative investment strategies.

Aberdeen shares were up 4.7% at 213p in mid-morning trading following the publication of the full-year results.