Aberdeen rules out bid for Gartmore

ABERDEEN Asset Management yesterday said it was “extremely unlikely” that it would make a bid for stricken fund manager Gartmore as it announced pre-tax profits rose 147 per cent in the year to £210m.

Martin Gilbert, chief executive of Aberdeen Asset Management, ruled out a purchase of Gartmore, saying that it would not be the right fit. He said that Aberdeen was currently concentrating on organic growth and cash generation.

Gilbert said Gartmore was a “good company”, but added: “We are team-based and they are more star manager, which is more akin to a Jupiter or Henderson.”

Meanwhile, Aberdeen said net new business inflows rose to £2.6bn reversing net outflows from the previous year of £10.7bn, mainly as a result of demand for emerging market and global equities. Revenue for the year came in at £638.2m, 51 per cent higher than last year.

It added that it had reduced its net debt ratio to 0.6 per cent from 17.1 per cent a year earlier after paying back short term bank loans in August.

The asset manager said gross new business rose to £46.6bn for the year to 30 September up from £19.1bn a year earlier. Meanwhile, assets under management increased to £178.7bn up from £146.2bn the year before.

Aberdeen upped its share dividend by 3.8p per share, making a total payment of 7p per share this year, a 17 per cent increase on the year before.