British asset manager Abrdn PLC (LSE:ABDN) reported a 47% rise in operating profit to £323mln in 2021. As part of its three-year return-to-growth plan, the wealth manager has made "strong progress" in the first year.
As a result of positive market movements, corporate actions and net flows, assets under management and administration rose by 1% to £542bn.
Abrdn said it would pay a full-year dividend of 14.6p per share.
Net outflows of £6.2bn were recorded in 2021, compared to £29.0bn for 2020.
For the first time since joining Standard Life, the company narrowed net outflows in 2021, and revenue increased by 6%.
IFRS pre-tax profit rose to £1.1bn from £838mln the previous year, as the asset manager reported fee-based revenue of £1.5bn for 2021, up from £1.4bn in 2020.
Institutional and wholesale net outflows excluding liquidity dropped to £2.1bn in 2021, from £8.9bn in 2020, "largely due to lower net outflows in equities and net inflows in fixed income and real assets".
The previously-announced acquisition of subscription-based investment platform interactive investor by the asset manager is expected to diversify revenue streams and provide "significant client reach" in abrdn's personal vector. According to the company, the acquisition is expected to be double-digit earnings accretive compared to standalone earnings in the first full financial year following completion.
Stephen Bird , chief executive officer Abrdn PLC (LSE:ABDN), said, "This was our reset year. In 2021 we set out a clear strategy for how we will create long-term sustainable growth and arrest the decline in revenue. We are delivering on our strategy for growth."
"For the first time since the merger, we have reported an increase in revenue for the full year - as well as an improved cost/income ratio of 79%, and a 47% increase in adjusted operating profit. We remain focused on delivering compound annual revenue growth in the high single figures. This will enable us to exit 2023 with a cost/ income ratio of around 70%," he added.