Aberdeen Asset Managers said this morning that its investment in property had helped buoy earnings as it reported a 16% slump in overall pre-tax profits, writes Andrea Cockram.
The group said pre-tax profits before goodwill, amortisation and exceptional items dropped to £40.7m from £48.2m the previous year, broadly in line with analysts’ expectations.
Aberdeen, whose shares have dived following the collapse of a number of its split capital investment trusts, also announced it was cutting its final dividend by nearly two-thirds to 2.15p from 6.65p in 2001.
However, it saw its shares hike 21% last week as investors took heart from the fact that private client broker Brewin Dolphin had only put aside £2.5m to cover costs arising from its role in the split capital investment trusts debacle.
Chairman Charles Irby said: “The past year has been very difficult for the group, and for the whole investment management industry.
“The bear market has seen the FTSE world index fall by some 25% over the past year.
“Bonds and property account for 58% of our assets under management and these proved to be more resilient than the equity market – the IPD UK monthly property index had a positive return over the year of 10%.”
But he reconfirmed the company’s aim to hive off its property arm following a review in October:
“Our strategic review led us to conclude that the interests of shareholders will be best served by the disposal of a majority interest in Aberdeen Property Investors, through flotation on the London Stock Exchange.
“We have received approaches from a wide range of financial institutions expressing interest in purchasing this division. These are being given due consideration by the Board.”
An IPO would raise £50m to £70m Aberdeen said last month, but a trade sale could net it as much as £200m.
EGi News 02/12/02
