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(Alliance News) - abrdn PLC on Tuesday said it nearly broke even in 2023, following a big loss in 2022, after it slashed jobs and made other costs cuts, but the beleaguered asset manager is still suffering more outflows of client money.
The Edinburgh-based investment company reported an IFRS pretax loss of GBP6 million last year, narrowed substantially from a restated GBP612 million loss in 2022, despite net operating revenue declining by 4.0% to GBP1.40 billion from GBP1.46 billion.
This was thanks to total administrative and other expenses being reduced to GBP1.46 billion in 2023 from GBP1.92 billion in 2022. abrdn in January said it plans to cut around 500 jobs to save a further GBP150 million per year by the end of 2025. abrdn currently employs around 5,000 people.
As abrdn had reported in January, assets under management and administration fell to GBP494.9 billion as of December 31 from GBP495.7 billion at June 30 and GBP500.0 billion at the end of 2022.
Net outflows had worsened to GBP12.4 billion in the second half, from GBP5.2 billion in the first half, leaving net outflows of client cash for the full year at GBP13.9 billion, worsened from GBP10.3 billion in 2022.
With the cost cuts and despite the decline in revenue and AuMA, abrdn said its cost-to-income ratio stayed steady at 82%.
abrdn declared a 7.3 pence per share final dividend, meaning its full-year payout remained at 14.6p.
"Our balance sheet remains strong which enables us to fund our cost transformation while continuing to strategically invest in growth areas and maintain our dividend," explained Chief Executive Officer Stephen Bird. "There is significant work ahead, but we are confident we will be successful in delivering future growth."
abrdn shares were up 6.1% at 171.50 pence early Tuesday in London. The stock remains down 20% over the past 12 months.
By Tom Waite, Alliance News editor
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