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Aberdeen fiscal H1 profit halves YOY as emerging market worries continue


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Aberdeen fiscal H1 profit halves YOY as emerging market worries continue

'sAUM rose during the six months to March 31, despite net outflows of £16.7billion, but attributable net profit more than halved year over year.

Netprofit attributable to equity shareholders was £70.6 million for the fiscalfirst half, down from £141.6 million in the year-ago period. EPS was 5.41pence, down from 10.72 pence a year earlier.

AUMstood at £292.8 billion at the end of March, up from £283.7 billion at Sept.30, 2015, but down from £330.6 billion at March 31, 2015. Net outflows were£16.7 billion in the six months to March 31, compared to £11.3 billion in theyear-ago period.

Marketmovements and performance generated a rise of £10.1 billion in AUM, whileforeign-exchange movements were responsible for a further £7.9 billion.Corporate transactions generated a gain of £7.8 billion, comprising £9.5billion of new assets from the purchases of Arden Asset Management, andAdvance EmergingCapital, partially offset by the disposal of £1.7 billion of"low-margin property management assets."

ChairmanRoger Cornick said the results were affected by ongoing fragile investorsentiment toward emerging markets attributable to the cyclical slowdown causedby falling oil and commodity prices. He added that despite earlysigns of a recovery in investor sentiment toward "companies which hadpreviously been undervalued by the market," no dramatic improvement in newbusiness flows is expected in the short term.

"[W]eremain vulnerable to further outflows over the next few quarters as clientscontinue to react to the difficult conditions for performance over the last fewyears," he said.

Aberdeensaid most of its cost-saving initiatives will be in place by the end of thefinancial year, meaning that it expects £50 million of savings in the year toSept. 30, 2017, with the full annual savings of £70 million to come through in2018.

Aberdeenwill pay June 16 an interim dividend of 7.5 pence per share, flat from a yearago, to shareholders on the register at May 13.