Aberdeen Asset Management Plc (ADN.L) reported Monday a sharp drop in pre-tax profit for fiscal 2009, reflecting mainly higher exceptional costs and asset impairments. Looking ahead, the company said that the impact of financial crisis on asset managers is likely to see more consolidation. The U.K.-based company's profit before tax for the year plunged to GBP 10.47 million from GBP 60.46 million in the previous year.
Results for the year include pre-tax exceptional costs of GBP 44.5 million, up from GBP 25 million a year ago. Amortization and impairment of intangible assets increased to GBP 30.14 million from GBP 13.78 million in fiscal 2008.
Excluding items, pre-tax profit was GBP 85.1 million compared to GBP 95.1 million last year. Profit after tax and before exceptional items, amortization and impairment decreased to GBP 70.5 million from GBP 78.62 million in the prior year.
Loss for the year attributable to equity holders of the company was GBP 8.07 million or 1.71 pence per share, compared to a profit of GBP 35.22 million or 4.52 pence per share in the year earlier.
Underlying earnings were GBP 55.73 million or 6.31 pence per share, lower than GBP 67.16 million or 9.01 pence per share last year.
Revenues for the year declined 2% to GBP 421.9 million from GBP 430.09 million last year.
Segment-wise, revenues from Investment Management slightly increased to GBP 313.32 million from GBP 312.79 million a year ago. Property asset management revenues were GBP 108.58 million, down from GBP 117.3 million last year. Operating profit was GBP 21.08 million, down from GBP 65.36 million in the preceding year. Excluding items, operating profit was GBP 95.71 million, compared to a profit of GBP 100.02 million in the previous year. Operating expenses increased to GBP 400.53 million from GBP 369.58 million in the prior year. Net finance costs also grew to GBP 10.61 million from GBP 4.9 million in the prior year.According to the company, the acquisition of certain fund management businesses from Credit Suisse added nearly GBP 11 million to operating costs for the period from completion of the transaction. The company acquired certain fund businesses of Credit Suisse's Global Investors business and the transaction was completed in two stages, on April 30 and June 30, 2009, which added about GBP 35.1 billion to assets under management during the year.
Total assets under management at the end of the year grew 32% to GBP 146.2 billion from GBP 111.1 billion in the previous year.
Martin Gilbert, chief executive said, "Our gross new business wins were healthy by year end, especially from our equity capability, while net outflows slowed significantly from the first half. The businesses we acquired from Credit Suisse have now been integrated, thanks to an excellent effort by our operations team and these are now making a material contribution. The cost reductions made, the more stable market conditions and the Credit Suisse transaction earlier this year will all help position us well for the coming year." In addition, the company proposed a final dividend of 3.2 pence per share, to shareholders of record on December 11, 2009, payable on January 28, 2010. ADN.L is currently trading at 141.8 pence, up 2.8 pence or 2.01%, on a volume of 276 housand shares.
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