Abrn tips to loss in ‘difficult economic environment’

Abrdn announced a half-year loss of £320 million in a “difficult global economic environment”.

In its report for the first half of 2022, Abrdn said the loss was “largely due to losses of £313 million due to the change in fair value of our significant listed investments during the period”.

Fee-based revenue was 8% lower at £696m compared to the first half of 2021, and adjusted operating profit was 28% lower at £115m.

Abrdn attributes this to “market movements”.

Assets under management and advice (AUMA) were £508 billion, compared to £542 billion in 2021.

This, the group said, reflects falling markets and the final withdrawal of the Lloyds Banking Group tranche. It was partially offset by the inclusion of Interactive Investor’s AUAs (ii).

Abrdn said its advisor vector continued to deliver in tough markets, with fee-based revenue up 6% and adjusted operating profit up 3%.

Net flows were £1.4bn, compared to £2bn in the first half of 2021. This reflects “client activity in the current environment”.

Meanwhile, its investment vehicle saw its royalty income drop 11% and its adjusted operating profit 40%.

Chief Executive Stephen Bird said: “The group’s half-year results largely reflect the challenging global economic environment and market turbulence.

“When I became CEO at the end of 2020, I said that we would pursue a strategy of diversification by refocusing our investment activities in areas of strength, where we have scale and which build on global growth trends and would also significantly extend our reach to the higher growth wealth market in the UK.

“That’s exactly what we’re doing, and the addition of Interactive Investor transforms our UK retail presence and future revenue streams. The strength of our balance sheet means we can continue to invest and reward shareholders.