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Highlights:
- Cost Savings: Abrdn is targeting £60 million in savings by the end of 2024, aiming for £150 million by 2025.
- Improved Outflows: The company reduced net outflows to £1 billion in the first half of the year, compared to £6.5 billion in 2023.
- Share Performance: Abrdn’s shares have risen 23.3% in the past six months, signaling some recovery after previous challenges.
Abrdn PLC (LSE:ABDN) will report its third-quarter performance on Thursday, October 24, with investors keenly watching for signs of continued improvement under newly appointed chief executive Jason Windsor. Windsor, who was confirmed as the permanent CEO last month, is tasked with guiding the asset management firm’s recovery following a challenging period under his predecessor, Stephen Bird.
The company’s half-year results in August showed promising signs of a turnaround, particularly in stemming the tide of net outflows, cutting costs, and boosting adjusted profits. As the company approaches its third-quarter results, key areas of focus will be Windsor’s ongoing cost-saving initiatives, the competitiveness of its advisor business, and the growth of its interactive investor platform.
Strategic Cost Savings and Turnaround Efforts
In the first half of the year, Abrdn reduced net outflows to £1 billion, a significant improvement compared to the £6.5 billion outflows during the same period in 2023. This was achieved as part of a broader strategy to stabilize the firm, which had seen its stock nearly halve under Bird’s leadership. The company’s cost-cutting initiatives were also highlighted, with headcount reductions contributing to a 9% reduction in operating costs.
The focus on cost efficiency is expected to continue, as Abrdn aims to save £60 million over the course of 2024, with plans to stretch those savings to at least £150 million by the end of 2025. Investors will be looking for updates on these cost-saving targets in the upcoming report.
Advisor Wing Competitiveness and Customer Growth
Another key element in Abrdn’s turnaround strategy is improving the competitiveness of its advisor wing. The company’s efforts to boost performance in this segment will likely be under scrutiny as investors seek reassurance that Abrdn is making headway in a highly competitive market. Additionally, customer growth on the interactive investor platform, which Abrdn acquired in 2021, will be a focus for shareholders eager to see this acquisition deliver results.
Market Performance and Outlook
Abrdn shares have risen by 23.3% over the past six months, reducing year-to-date losses to 2.8%. This positive momentum offers some optimism ahead of the third-quarter results, although investors will be looking for further confirmation that Windsor's leadership and the company’s strategic initiatives are delivering sustained improvement.
