Shares of the FSTE 250-listed Abrdn PLC (GB:ABDN) gained over 1.6% as of writing after its profits rebounded in the first half of 2024. The company reported an IFRS pre-tax profit of £187 million, marking a significant turnaround from the loss of £169 million in H1 2023. The profits were driven by the sale of Abrdn’s European private equity business and reduced losses from the decline in the value of listed stakes on the firm’s balance sheet.
Management described the results as an “encouraging start” and confirmed that the company remains on track to achieve at least £150 million in annualized cost savings by the end of 2025.
Highlights from Abrdn’s H1 Results
In the first half, Abrdn reported a 1% year-over-year increase in its adjusted operating profits, reaching £128 million. Meanwhile, its net operating revenue declined by 7% to £667 million.
The company’s outflows (excluding liquidity) improved to £1.6 billion in H1 2024 from £4.4 billion in the same period last year, driven by higher gross inflows. As a result, its AUMA (assets under management and administration) grew by 2% to £505.9 billion.
Additionally, Abrdn’s adjusted operating expenses decreased by 9% year-over-year to £539 million in the first half, reflecting solid progress in the cost savings program. It included an 11% reduction in staff costs and a 9% decrease in non-staff costs.
Analysts’ Reactions
Overall, analysts praised Abrdn’s results and cost-saving efforts. However, they remain concerned over the outflows.
Analyst Mandeep Jagpal from RBC Capital described the results as “solid,” highlighting that both operating profit and net flows surpassed expectations.
Are Abrdn Shares a Buy?
ABDN stock has a Hold rating on TipRanks, backed by two Sells, two Holds, and one Buy recommendation. The Abrdn share price forecast is 160.80p, which indicates that the stock is fully priced at the current price level.