Fund manager posts dopuble-digit rise in revenue and pre-tax profits for the year
Aberdeen Asset Management (AAM) has reported strong annual results with double-digit hikes in revenue and pre-tax profits.
Underlying pre-tax profits for the year to September 30 rose 15 per cent to £348 million on an 11 per cent rise in revenues to £869.2 million.
The group said the rise in net revenue reflects “healthy growth” in recurring management fees and a rise in performance fee income.
Recurring fees now represent 94 per cent of net income.
The group said its had benefited from a recovery in the equity markets and demand for higher-margin financial products.
AAM said it had added £36 billion in new business in the financial year, down from £43 billion last year.
Assets under management also rose 10 per cent on the previous year to £187.2 billion. In addition the group reports it has further strengthened its balance sheet by more than doubling its net cash position to £266.4 million.
The group proposes to use £80 million of its net cash holding to pay a final dividend of 11.5 pence per share, up 28 per cent on 2011.
AAM said its capital position has been further strengthened since the year end from holders of £65 million of convertible bonds converting their holdings to ordinary shares.
Chief executive Martin Gilbert said: “This has been a difficult and uncertain year in the financial markets.
“Against this backdrop we are pleased to have delivered extremely strong performance for our shareholders by focusing on investment performance and by delivering for our clients.
“We have been rewarded by continuing strong interest in our funds and significant growth in assets under management.
“We have strengthened our balance sheet further and remain confident that our long-term philosophy and rigorous investment processes will continue to drive investment performance and shareholder value.”
AAM also published its 2013 forecast on Monday which points to a “slow growth environment” in the emerging markets though the group “takes comfort” there are still growth pockets in the global economy.
The group's share price has risen by more than 80 per cent in the past year, taking its market capitalisation to more than £4 billion and seeing it enter the FTSE 100 for the first time in its 29-year history in March.