(Alliance News) - Standard Life Aberdeen PLC on Tuesday said annual profit was helped by a one-off accounting gain as it outlined a new strategic focus in preparation for life without its iconic, nearly 200-year-old, 'Standard Life' brand.
The FTSE100-listed investment and asset management firm reported fee-based income of GBP1.43 billion for 2020, down from GBP1.63 billion in 2019 and largely reflecting 2019 outflows.
Pretax profit more than trebled, however, to GBP838 million from GBP243 million. This was due to lower impairments of goodwill and intangibles, as well as increased profit on disposal of interests in associates. This included a GBP1.05 billion one-off accounting gain amid a change in the classification of its investment in HDFC Life.
However, on an adjusted basis, pretax profit dropped 17% to GBP487 million from GBP584 million.
Net outflows reduced to GBP3.1 billion from GBP17.4 billion in 2019, excluding Lloyds Banking Group PLC tranche withdrawals, driven by a "significant improvement" in Institutional and Wholesale net flows. Assets under management & administration edged down to GBP534.6 billion from GBP544.6 billion, reflecting GBP25.9 billion LBG tranche withdrawals, partially offset by improvements in markets.
"The economic backdrop caused by the pandemic meant we did not build revenue in 2020 but we made encouraging progress in related areas. Notably, we reduced net outflows, improved both consultant ratings and investment performance and met major milestones in delivering the technology framework needed to underpin future growth," Chair Douglas Flint said.
"In December, we announced the acquisition of one of Europe's leading logistics real estate fund managers, Tritax. On top of this, we announced the intention to sell Parmenion, one of our three adviser platform businesses, in order to bring clarity to our adviser platform strategy."
Standard Life recommended a final payout of 7.3 pence to bring the total for the year to 14.6p, down by a third from 21.6p for 2019.
"The board remains committed to delivering a dividend that is sustainable over the medium term. Reflecting current operating profitability, industry trends, and economic and market uncertainties, the board is rebasing the dividend to a level from which it can be grown," Flint added.
The company plans to maintain its total payout at the current level until it is covered at least 1.5 times by adjusted capital generation.
Flint added: "At which point the board will seek to grow the dividend in line with its assessment of the underlying medium term growth in profitability."
The company also unveiled details of a "refreshed" focus on Asia.
Standard Life said it is seeking to deliver client-led growth through Investments, Adviser and Personal, and it has a "clear growth strategy" for each of these areas. Growth in Asia, UK adviser and consumer markets, Solutions and Responsible investing have all been identified as "strategic priorities".
The new focus comes in the wake of the company in February announcing it will sell the 'Standard Life' brand to Phoenix Group Holdings PLC in 2021.
Standard Life Aberdeen said the sale of its iconic brand was part of an agreement to simplify and extend its strategic partnership with Phoenix Group.
Standard Life added on Tuesday: "We will be rebranding to use one consistent brand name for our publicly listed company and for all our client facing businesses. Our brand will make a promise that we will fulfil and having a single brand will allow us to get a better return on the investments we make in marketing and sales."
Shares in the company were 1.4% lower at 314.61p each in London on Tuesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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