News

Aberdeen Asset Management saw profits creep ahead in the year ended 30 September, although gross inflows were largely offset by higher redemptions due to increased risk aversion.

Profit before exceptional items and amortisation of intangibles rose to £95.1m from £94.3m in 2007 on revenue up to £430.1m from £347.8m a year ago.

Assets under management improved to £111.1bn from £95.3bn, with net new business for the year totalling £1bn after deducting redemptions of £20.8bn.

Acquisitions caused a 32% increase in operating costs, but the firm plans to implement a further £20m of annual cost savings by next September on top of the £57m already announced.

About £3m of the original cost reduction plan has been saved in the second half, with the rest due to come through in 2008/09.

"The group continued to attract healthy levels of new business, particularly from Continental Europe, with gross inflows running at similar levels to last year," it said. "However, to a large extent these wins have been offset by higher redemptions because of increased risk aversion."

"Conditions in the asset management industry are tough and will remain so for some time," said chief executive Martin Gilbert.

"We will continue to manage the business tightly, but we also remain keen to take advantage of relevant growth opportunities that may emerge during this turbulent period."

Chairman Charles Irby said he will retire from the board at the AGM in January after nine years in the job. Roger Cornick will take on the role.

A final dividend of 3p a share takes the total for the year to 5.8p.