Abrdn warns of continuing headwinds, starts cutting costs

  • Investing.com
  • Stock Market News
Abrdn warns of continuing headwinds, starts cutting costs

Investing.com - Abrdn (LON: ABDN ) reported a drop in operating profits for 2023 and warned of continuing headwinds, but the fund manager also confirmed progress in cutting costs and maintained its final dividend.

The FTSE 250-listed company reported that adjusted operating profits came in at £249 million (£1 = $1.2687) for 2023, down 5% on the previous year, but better than the £242 million expected.

This drop came as the group warned of continuing tough market conditions for active asset managers, with more investors shifting money to passive funds. Net outflows from its funds totalled £13.9 billion, compared with the £10.3 billion the year before.  

That said, chief executive Stephen Bird said work has begun on the 500 job cuts, which were first announced last month, which is designed to help the group remove £150 million of costs by the end of 2025, on top of £102 million last year.

These cost cuts helped Abrdn report a final dividend of 7.3 pence, resulting in a total of 14.6p per share in 2023, the same as the previous year.

Abrdn shares rose 3.4% after the results, but have fallen over 25% over the last year.

“Our balance sheet remains strong which enables us to fund our cost transformation while continuing to strategically invest in growth areas and maintain our dividend,” said Bird. 

“There is significant work ahead, but we are confident we will be successful in delivering future growth.”

 

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