Aberdeen Asset Management shares touched a 10-year high Monday after the Scottish fund manager posted a double-digit rise in first half earnings.
Underlying pre-tax profit was £162.2m for the six months ending in March, a 14 percent jump, while the group's managed assets rose 9 percent to just under £185bn. Aberdeen shares rose nearly 3 percent in London trading, topping the FTSE 100 gainers and taking the group's share price to 281.2p, a ten-year high.
Aberdeen also reported a 7 percent jump in revenue to £413.1m, up from £385.9 mln in 2011, with an increase in operating margins by 40.1 percent.
"Aberdeen has achieved further growth in revenue and profit in the first half year, continuing the momentum of 2010 and 2011. Our blended average fee rate has been improved by strong inflows into key products and AuM has grown by 9 percent since our last year end. Global economic conditions remain uncertain and any recovery is still tentative. Nevertheless, we remain confident that our long term investment philosophy and process, couple with the scale and diversity of our business and financial strength, leave us well placed to meet the expectations of our investors," said Martin Gilbert, Chief Executive of Aberdeen Asset Management.
An interim dividend of 4.4 pence per share was declared, an increase of 16 percent on the 2011 interim payment.
The international asset management company is encouraged by the strong start to the current financial year but, as it has already seen during the first few weeks of April, global markets remain susceptible to periodic bouts of volatility.
The group remains confident that its long term investment philosophy and process are well suited to operating successfully in such conditions, and it will continue to pursue its objective of generating further sustainable growth in profits and increased financial strength, said Aberdeen.