Aberdeen sees first-half profits slip, but transformation 'on track'

(Sharecast News) - Investment management firm Aberdeen reported a slight dip in first-half profits due to efforts to improve efficiency, but said it is delivering well against its strategies with the business transformation "on track". The company, which runs asset management, investment advisory and D2C investment platform Interactive Investor, reported an adjusted operating profit (AOP) of £125m for the six months to 30 June, down 2% over last year, with adjusted net operating revenues down 6% at £628m.

AOP increased 25% at Interactive Investor to £69m, with trading revenues up 36% at £45m, helped by record trading volumes in April.

AOP also rose 3% in the investment division to £35m, though net operating revenues were down 9% at £371m due to changes in the asset mix, including net outflows in equities.

However, AOP in the advisory division slumped 35% to £42m due to higher expenses and a 14% slump in net operating revenues to £102m.

Aberdeen's transformation programme achieved £137m of run-rate savings by the end of the half, with the company on track to deliver at least the £150m of targeted annualised cost savings by the end of the year. The majority of these savings will benefit its investments division as it repositions the business to focus on credit, specialist equities and real assets.

Despite the dip in the group adjusted profit figures, IFRS profit before tax surged to £271m from £187m the year before as a result of £155m gains from the change in fair value of Aberdeen's stake in Phoenix as well as reduced restructuring and corporate transaction expenses.

The interim dividend was held at 7.3p per share.

"In the first six months of 2025 we have made good progress against our strategic ambition to become the UK's leading Wealth & Investments group. Our financial performance reflects our transition to achieving our growth and efficiency targets," said chief executive Jason Windsor.