Scottish-based global investment company and asset manager abrdn today announced losses of more than £300million in the first half of 2022.
This was mainly attributed to what was described as a "challenging global economic environment and market turbulence".
The pre-tax deficit of £320million this morning was a big turnaround in fortunes from the first half of 2021, when the business recorded profits of £113milion.
The company said the plunge into the red was largely due to losses of £313million from the change in fair value of its “significant” listed investments.
Abrdn also said that fee-based revenues in the first half of 2022 were 8% lower at £696million and adjusted operating profits were 28% down at £115million.
Assets under management and administration fell to £508billion from £542billion at the end of 2021.
Chief executive Stephen Bird said: "The half-year group results largely reflect the challenging global economic environment and market turbulence.
Resilient business model
"Our business model has been resilient in the first half of 2022 and we've seen the clear benefits of our diversified three-vector model, with profits growing in personal and adviser. This is against the backdrop of a rapid downturn in the global economy and markets that has affected the sector and had an impact on the investments vector and overall group performance.
"When I became CEO in late 2020, I said that we would pursue a strategy of refocusing our investments business into areas of strength and relative scale and that we would expand our reach in the higher growth and higher-margin UK savings and wealth market by investing in and growing our adviser and personal vectors. Despite the challenging market context, we are doing exactly that."
Mr Bird said the addition of the interactive investor platform transformed the company's UK retail presence and future revenue streams.
As regards the outlook, abrdn said current market uncertainty means the company's ambitions for revenue growth and improved cost/income ratio were likely to take longer than originally expected.
Last December, the company announced plans to acquire interactive investor - the UK's leading subscription-based investment platform - for £1.49billion. The deal was completed at the end of May.
Edinburgh-based abrdn was formed following the 2017 merger of Aberdeen Asset Management and Standard Life. It has around 5,000 employees globally.
FTSE 100
The UK's top share index, the FTSE 100, opened flat at 7,482 this morning, following yesterday's 42-point gain.
Brent crude futures were down 0.66% at $96.01 a barrel.
Companies reporting today
- Full-year results: Baillie Gifford US Growth Trust
- Half-year results: abrdn, InterContinental Hotels Group, IWG, Just Group, Legal & General, TI Fluid Systems