Abrdn Reports Narrower Loss for H1 2023


By Elena Vardon

Abrdn, the FTSE 100 investment company, has announced a narrower pretax loss for the first half of 2023. Despite facing higher-than-expected net outflows, the company managed to extend its share buyback program.

For the six months ended June 30, Abrdn reported a pretax loss of £169 million ($216 million), compared to a restated pretax loss of £326 million in the same period last year. The previous year’s loss was primarily driven by a decline in the value of the company’s listed stakes.

The company’s preferred metric, adjusted operating profit, stood at £127 million, showing an improvement from the restated figure of £115 million in the previous year. This performance aligns with the consensus estimate of £133 million compiled by the company.

Net operating revenue for the period increased to £721 million, up from £696 million in the previous year and slightly surpassing consensus estimates of £719 million.

However, assets under management and administration decreased slightly to £495.7 billion from £500 billion at the end of the period. Although this was slightly below expectations, it did not significantly impact the overall results.

Abrdn experienced total net outflows, excluding liquidity and Lloyds Banking Group tranche withdrawals, amounting to £4.4 billion. This represents an increase compared to the previous year’s outflows of £3.8 billion, and it exceeded expectations of £2.6 billion.

To further support its share buyback program, Abrdn has extended it by an additional £150 million. This move comes as the program nears completion.

The board also declared an interim dividend of 7.3 pence per share, in line with expectations.

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