Proactive Investors - Abrdn PLC (LON:ABDN) confirmed it has started work on cutting 500 jobs as it reported a fall in underlying profits for last year but maintained its dividend.
The fund manager and owner of the Interactive Investor (ii) platform said it expects headwinds to continue in 2024 as market conditions remain challenging for active asset managers, with more investors shifting money to passive funds.
Adjusted operating profits came to £249 million for 2023, down 5% on the previous year but better than the £242 million that analysts were expecting.
On a statutory basis, it reported a £6 million loss compared to £612 million a year earlier.
Net outflows from its funds totalled £13.9 billion, adding to the £10.3 billion the year before and also with that figure excluding another £3.7 billion of institutional and ‘retail wealth’ net outflows (£3.2 billion in 2022).
A final dividend of 7.3p made for a total of 14.6p per share in 2023, the same as the previous year.
Chief executive Stephen Bird said work has begun on the 500 job cuts, which were first announced last month, which is designed to help the group remove £150 million of costs by the end of 2025, on top of £102 million last year. However, the restructuring is expected to result in £150 million of costs this year.
He said the group has been “reshaped” over the past three years “to fit the modern investment landscape” and is now “better positioned for future growth”, though last year the investment industry was hit by structural and macroeconomic challenges.
The ii platform and Abdrn’s adviser business “are delivering”, he said, and are being scaled up “to benefit from the long-term structural growth in UK savings and wealth”.