LONDON (dpa-AFX) - Aberdeen Asset Management Plc (ADN.L) reported Monday a strong growth in profit for fiscal year 2011, as significant volume of higher margin new business boosted its revenues. However, assets under management declined. The company also announced a 29 percent rise in annual dividend and said it is confident of future, despite volatile markets.
Full-year pre-tax profit climbed 78 percent to 224.1 million pounds ($350.32 million) from prior year's 125.6 million pounds. Underlying pre-tax profit, which excluded exceptional items and amortisation and impairment of intangibles, was 301.9 million pounds, 44 percent higher than 210 million pounds in the prior year.
For the year, profit attributable to equity holders was 169.7 million pounds or 14.06 pence per share, compared to 92.6 million pounds or 8.04 pence per share a year ago. Underlying earnings per share grew 41 percent to 18.7 pence from 13.3 pence in the previous year.
Annual revenues increased 23 percent to 784 million pounds from 638.2 million pounds last year. The company said it benefited from winning a significant volume of higher margin new business, principally into pooled funds, and maintaining fee rates on principal products due to market demand.
For the year, underlying operating profit increased 39 percent, and the operating margin improved to 39.5 percent from 34.8 percent in 2010. Aberdeen noted that this margin compares favorably with its international peer group, and that it will look to build this margin further, subject to stabilizing markets.
Assets under management at year-end declined 5 percent to 169.9 billion pounds from 178.7 billion pounds a year ago, due to the events of the last few months, even though there was steady growth for most of the year.
'The final quarter contrasted starkly to the relatively stable market environment during the first three quarters of our financial year to 30 September 2011. Yet, despite the economic and political circumstances of the last few months and challenges they present... the Group has achieved significant growth in revenue, margins and profits,' the company said in a statement.
Further, the company said its Board is recommending a final dividend of 5.2 pence per share, making a total payment for the year of 9 pence per share, an increase of 29 percent from 2010.
Looking ahead, Chairman Roger Cornick said, 'Markets are likely to remain volatile until there is meaningful progress towards a resolution to the European debt crisis. Even then the likelihood is for a low growth environment across Europe and the US over the next few years. Despite this we are confident that Aberdeen can continue to grow revenues, assets under management and profits.'
The company said it remains focused on growing the business organically and will continue to impose tight cost control to grow margins further.
Aberdeen shares are currently trading at 212.90 pence, up 9.50 pence or 4.67 percent in London.
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