Aberdeen Group (ABDN) Q1 2025 TU earnings summary

Executive summary

• AUMA ended Q1 at £500.1 billion, down from £511.4 billion at year-end, as lower markets and net outflows in Investments and Adviser were partially offset by strong inflows and 9% customer growth at interactive investor, including 29% SIPP growth.

• Adviser net outflows improved to £0.6 billion, the lowest since Q3 2023, reflecting better service, platform enhancements, and repricing.

• Investments experienced £6.4 billion net outflows, mainly from a £4.2 billion low-margin mandate redemption, but a large quant mandate win in April turned year-to-date net flows positive.

• The group remains focused on becoming the UK's leading wealth business and repositioning Investments for growth.

Financial highlights

• interactive investor achieved net inflows of £1.6 billion, with AUMA at £77.7 billion and record daily trades up 19% year-over-year.

• Adviser AUMA was £73.7 billion, down 2% from year-end, with net outflows of £0.6 billion.

• Investments AUM fell 3% to £359.6 billion, with £6.4 billion net outflows, mostly from a £4.2 billion mandate redemption.

• Fixed income saw net inflows of £1.5 billion, while equities continued to experience outflows.

• Total net outflows in Q1 2025 were £5.2 billion, compared to net inflows of £0.8 billion in Q1 2024.

Outlook and guidance

• Committed to FY 2026 targets: adjusted operating profit above £300 million and net capital generation of about £300 million.

• Transformation target of at least £150 million annualized cost savings by year-end remains on track.

• Adviser targets at least £1 billion net inflows in FY 2026, supported by improved service and platform functionality.

• Investments aims for at least £100 million adjusted operating profit by 2026, with continued cost reduction and efficiency measures.

• Fee margin in Investments expected to fall slightly, with guidance reiterated at below 21bps, likely closer to 20bps by year-end.