Abrdn Reports Narrower Pretax Loss for H1 2023

by Warren Seah

Abrdn, the FTSE 100 investment company, has announced its financial results for the first half of 2023. Despite experiencing higher-than-expected net outflows, the company was able to post a narrower pretax loss compared to the same period last year. In addition, Abrdn extended its share buyback program.

Improved Financial Performance

For the six months ended June 30, Abrdn reported a pretax loss of £169 million ($216 million), a decrease from the restated pretax loss of £326 million recorded during the same period in the previous year. The improved financial performance can be attributed to fewer losses resulting from the decline in the value of the listed stakes held by the company.

Abrdn’s adjusted operating profit, which excludes exceptional and one-off items, reached £127 million, surpassing last year’s restated figure of £115 million. The company-compiled consensus estimate was £133 million.

The net operating revenue for the period rose to £721 million from £696 million in the previous year, slightly exceeding consensus expectations of £719 million.

Assets Under Management and Administration

Although there was a minor decline, assets under management and administration at the end of the period stood at £495.7 billion, slightly missing market views. This figure decreased from £500 billion in the previous year.

Net Outflows and Share Buyback Program

Total net outflows, excluding liquidity and Lloyds Banking Group tranche withdrawals, amounted to £4.4 billion, compared to £3.8 billion in the prior year and expectations of £2.6 billion.

Abrdn announced an extension to its share buyback program, increasing it by an additional £150 million. The program, which is nearing completion, was initially valued at £150 million.

Interim Dividend Announcement

The board declared an interim dividend of 7.3 pence per share, remaining flat as expected.

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