Aberdeen shares slide as outflows widen
Aberdeen shares slid as its Interactive Investor performance failed to offset persistent outflows elsewhere.
The firm’s share price fell 7.3 per cent to 204p in early morning trading, as persistent outflows from its Adviser business dampened overall investor sentiment.
Total assets under management and administration (AUMA) grew nine per cent to £556bn from £511.4bn, off the back of positive market movements and the strong performance of Interactive Investor, but net outflows widened to £3.9bn from £1.1bn.
The FTSE 250 company reported a 76 per cent jump in profit before tax from £251m to £442m, driven by a £236m investment gain in its Standard Life stake.
The Interactive Investor arm saw net inflows reach £7.3bn, after its customer base grew to 500,000 in the face of a highly competitive market.
The group said the brand’s recognition and simpler price plans, which went live in February, continue to attract customers.
Jason Windsor, Aberdeen chief executive, noted that the business is “growing spectacularly”, after it reported AUMA of £97.5bn, up from £77.5bn.
Adviser outflows persist
In contrast to Interactive Investor’s performance, its adviser business suffered headwinds, as its operating profit fell 32 per cent to £86m from £126m the prior year.
Revenue also fell 14 per cent to £205m, reflecting the impact of strategic repricing, but the company said the move “was a necessary step to ensure our competitiveness”.
But AUMA improved to £80.4bn from £75.2bn, and while outflows persisted, they almost halved to £2.2bn.
The group said it expects the business to return to positive net flows in 2026, with a £1bn net inflow target to be delivered in 2027, a one year delay.
Despite the delay, Windsor said the “focus remains on returning to growth as quickly as possible” but analysts said the target pushback was “a little disappointing”.
Rae Maile, analyst at Panmure Liberum, said: “The company set out various targets a year ago but… the market has been grudging at best in believing that it could deliver.
“The slippage in Adviser flow targets is a little disappointing, but not as relevant to profits or valuation as continued delivery at ii and further progress at Investments towards a “proper” return.
“There is much to admire in what has been achieved in the last year, and much more to look forward to, but estimates remain modest.”
Investments momentum
Favourable market conditions drove assets under management (AUM) in its investments business to £390.4bn from £369.7bn, with its Institutional and Retail Wealth channel bouncing back from outflows of £4.7bn to inflows of £0.1bn.
But, outflows persisted in the Insurance Partners segment, which suffered outflows of £6.8bn.
Its deal to become the sponsor of the Stagecoach Group Pension scheme also brought £1.2bn of AUM.
The company has shifted its focus to pursue becoming the UK’s leading Wealth and Investment group, bolstered by “higher customer engagement” and “a pipeline of proposition enhancements”.
Windsor said: “Our efforts over the last twelve months mean Aberdeen is in much better shape…We have entered 2026 with momentum and remain firmly focused on delivering our 2026 Group targets and sustainable growth beyond this.”
It delivered £180m in annualised cost savings, and maintained its full year dividend at 14.6 pence.