LONDON (dpa-AFX) - Aberdeen Asset Management Plc (ADN.L, ABDNF.PK) posted Monday a higher profit for its first half boosted by increased revenues. Assets under management also increased from last year. The shares increased around 2.4 percent in the morning trade in London.
Chairman Roger Cornick said, 'The healthier tone shown by global financial markets during the period, particularly since the start of 2012, has supported a return of investor appetite for risk assets and an ongoing desire for yield.'
The company added that its ongoing focus on organic growth and control of costs has delivered further improvements in margins.
Operating margin for the period was 40.1 percent, continuing the steady improvement achieved over the last 3 years and ahead of the 38.1 percent reported last year, the company noted.
Assets under management or AuM at the end of the period was 184.7 billion pounds, 2 percent higher than 181.2 billion pounds last year. AuM grew 8.7 percent from the end of the previous fiscal year in September. Gross new business inflows for the period totaled 18.2 billion pounds, lower than 23 billion pounds a year ago.
The company noted that the average fees earned on new business continue to run at higher rates than its existing AuM. Blended average management fee rate of 43.9 basis points was higher than last year end's 41.2 basis points.
Chief Executive Martin Gilbert said, 'Aberdeen has achieved further growth in revenue and profit in the first half year, continuing the momentum of 2010 and 2011. Our blended average fee rate has been improved by strong inflows into key products and AuM has grown by 9 percent since our last year end.'
For the first half, pre-tax profit grew to 124.3 million pounds from last year's 109.1 million pounds. Underlying pre-tax profit, which excluded amortization and impairment of intangibles, increased 14 percent year-over-year to 162.2 million pounds.
Earnings per share were up to 7.95 pence from 6.93 pence in the prior-year period. Underlying earnings per share climbed 17 percent to 10.43 pence from 8.91 pence a year earlier.
In the six-month period, revenue grew 7 percent to 413.1 million pounds from 385.9 million pounds a year ago.
Further, the company said its Board has decided to pay an interim dividend of 4.4 pence per share, an increase of 16 percent on the previous year.
Looking ahead, Aberdeen noted that it is encouraged by the strong start to the current financial year, but global economic conditions remain uncertain and any recovery is still tentative.
'We remain confident that our long term investment philosophy and process are well suited to operating successfully in such conditions, and we will continue to pursue our objective of generating further sustainable growth in profits and increased financial strength,' the company said in its statement.
Aberdeen shares are currently trading at 280.60 pence, up 6.60 pence or 2.41 percent in London.
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© 2012 AFX News
