Aberdeen Asset Management, a fund manager reported on Monday its performance considered as a “transformational” performance through its acquisition of the Scottish Widows Investment Partnership (SWIP). It has also raised its hopes of buying back shares, sending an 11-month high increase.
During the quarter, the company has also improved its equity fund flows after a 20-billion-pound or 31.3 billion dollar company wide net outflow within the year until September 30.
The money manager stated its operating margin achievement of 55% on its SWIP business, an indication of a year ahead of improvement in its target and margins that could reach up to 60% after full integration.
Bill Rattray, company Finance Director said the SWIP acquisition was a clear indication of a business transformation, adding that the acquisition was completed on April 1. Rattray added that the company is already ahead when it comes to cost synergies, including strong cash generation, and expects a continuous progress.
Company shares rose 3.8%, making it the best performing constituent within the FTSE 100 index. Aberdeen also disclosed its share buyback commitment.
During a call, Martin Gilbert, company Chief Executive Officer (CEO) said a future repurchase of shares would be the main reason, if they see a good cash generation as well as a good dividend growth.
Aberdeen’s final dividend jumped by 1.25 pence, equivalent to 11.25 pounds per share, giving an overall payout for the current year of 18 pounds, an increase of 12.5%.