Abrdn trims full-year profit and dividend amid outflows and job cuts

UK-based asset manager Abrdn (LSE: ABDN) reported a slight decline in full-year operating profit for 2023, alongside maintaining its dividend despite facing client cash outflows and implementing job cuts.

The company announced an adjusted operating profit of £249 million for the year, representing a 5% decrease compared to £263 million in 2022. This figure matched analyst predictions. Abrdn also declared an unchanged full-year dividend of 14.6 pence per share.

These results come as abrdn grapples with net client cash outflows that totalled £13.9 billion in 2023, surpassing the £10.3 billion outflow recorded in 2022. To address these challenges, the company announced a restructuring plan in January 2024, which included eliminating 500 positions.

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Under the leadership of Chief Executive Stephen Bird, abrdn is undergoing a turnaround strategy that involves personnel reductions, streamlining its fund offerings, and venturing into the mass market through the 2022 acquisition of online platform interactive investor. The company’s assets under management also witnessed a slight dip, reaching £494.9 billion at the year’s end, compared to £495.7 billion six months prior.

Abrdn shares were up 6% at the open.