Scottish asset manager Abrdn said it had seen”significant progress” in 2024, exceeding its cost transformation targets and laying the foundations for the new management team to achieve its growth targets.

Chief executive Jason Windsor said Investments returned to inflow in the quarter, while there remain challenges to overcome.

“interactive investor, which achieved the number 1 position in UK D2C [direct to consumer] net flows, performed very strongly throughout 2024, and we expect continuation of its growth this year.  

“Outflows in Adviser are being addressed, with an absolute focus on an improved service and value proposition for our clients. 

“I look forward to providing further information on our performance and strategy with the Full year results on 4 March.”

Shares rose 6.3p (4.45%) to close at 147.9p after surging 8% in early trade.

Assets under management and administration were up 3% in 2024 to £511bn; with a 1% increase in Q4 reflecting positive markets and a net inflow in Investments and interactive investor.

Q4 net inflow in Investments of £0.5bn was driven by alternatives, quantitative strategies and liquidity. Institutional & Retail Wealth returned to a net inflow of £0.3bn in FY 2024.

Adviser AUMA was up 2% in 2024, with outflow of £3.9bn in FY 2024 offset by positive markets.

interactive investor is delivering “continued strong growth”, with net inflow in FY 2024 almost doubling to £5.7bn (FY 2023: £2.9bn), AUMA up 17% and customers up 8% to 439,000.

The company said it was making good progress in its transformation. FY 2024 adjusted operating expenses were below £1.075 billion, in line with guidance; annualised run rate savings in excess of £100m has been achieved and it is on track to deliver target of at least £150m of annualised savings by the end of 2025. 

FY 2024 adjusted operating profit is expected to be in line with current market expectations, providing a solid base from which to grow.

Market reaction

Analysts at Panmure LIberum said: “Rome was not built in a day, but someone had to break ground sometime. Similarly, abrdn will not be rebuilt quickly but it has to start putting in some quarters where things are a bit better than not and in Q4/24 it has done exactly that.

“Net flows at a group level were better than we hoped for, and not just because of liquidity, while the known issues in Adviser are no worse than feared and ii has continued to grow well.

“There is plenty of value in the business if management delivers, and the signs of that are a bit better.”

John Moore, senior investment manager at RBC Brewin Dolphin, said: “Abrdn has largely been the subject of headlines for the wrong reasons during the last few years, however, these results offer signs of optimism for the future.

“Interactive Investor is performing very well and is offsetting outflows in the advisor division, while the wider asset management business is showing signs of stability.

“Results in line with forecasts are a step forward for the company and it will be interesting to see the targets and vision that Jason Windsor sets out with the full results in March.”