Building a stronger abrdn
- Creating a stronger business model with diversified earnings from three-vector strategy
- Scaling up our leading UK savings and wealth businesses
- Refocusing and simplifying our Investments business to drive efficiency, client experience and deliver growth
- Reinvesting and distributing capital to drive growth and deliver shareholder returns
Stephen Bird, Chief Executive Officer of abrdn plc, said:
"We are building a stronger abrdn. As we exit year two of our three-year strategic plan, the structure of our group is now broadly set. We are increasingly well positioned for growth.
In one of the toughest investing years in living memory, the resilience we have created in our business model helped us to deliver adjusted operating profit of £263m.
Adviser and Personal, which benefited from the acquisition of ii, both delivered increased revenue and profits. This provided an important offset to the impact of market conditions on our Investments business.
In Investments, gross flows excluding liquidity held up well at £49bn in spite of the considerably worse environment. Underlying net outflows were 3% of opening AUMA, excluding the last LBG withdrawals and liquidity, and were concentrated in equities.
We are making progress on our commitment to focus on areas of scale and strength, and to simplify and reduce costs in the business. Overall, we are increasingly well positioned for the cycle turning. Our three businesses work well together and we are building the linkages that will create value across the group.
Our capital position is strong and we are reinvesting into growth areas, while providing returns to shareholders. We look to the year ahead with confidence and a clear focus on delivering for clients and our wider stakeholders."
Summary results
| 2022 | 2021 | Change
Financial metrics | | |
Net operating revenue1 | £1,456m | £1,515m | -4%
Adjusted operating profit | £263m | £323m | -19%
Cost/income ratio | 82% | 79% | 3ppts
Adjusted capital generation | £259m | £366m | -29%
IFRS (loss)/profit before tax | (£615m)| £1,115m |
Adjusted diluted earnings per share | 10.5p | 13.7p | -23%
Diluted earnings per share | (26.8p)| 46.0p |
Full year dividend per share | 14.6p | 14.6p |
Dividends
The Board has recommended a final dividend for 2022 of 7.3p (2021: 7.3p) per share. This is subject to shareholder approval and will be paid on 16 May 2023 to shareholders on the register at close of business on 31 March 2023. The dividend payment is expected to be £142m.
As a result of the decline in revenue in the year, dividend cover on an adjusted capital generation basis was 0.9 times.
It remains the Board's current intention to maintain the total annual dividend at 14.6p (with the interim and final both at 7.3p per share), until it is covered at least 1.5 times by adjusted capital generation, at which point the Board will seek to grow the dividend in line with its assessment of the underlying medium-term growth in profitability.
https://www.investegate.co.uk/abrdn-plc ... 00102983R/
nb, part 1 of 8.
Ian.
