Aberdeen Group Shares Plunge Despite Profit Increase; Investor Concerns Mount

Aberdeen Group plc (LON: ABDN) witnessed a sharp sell-off today, with shares plummeting over 7% despite reporting a 4% increase in adjusted operating profit for the full year 2025.

Markets reacted negatively to underlying concerns about net outflows and the sustainability of growth, overshadowing the headline profit figures.

The company's full-year results, released March 3, 2026, showed adjusted operating profit reaching £264 million, up from £255 million the previous year. IFRS profit before tax saw a more significant jump of 76%, reaching £442 million. Adjusted diluted earnings per share also rose by 5% to 15.7p, while the full-year dividend remained steady at 14.6p per share.

However, the primary driver of investor concern appears to be the net outflows of £3.9 billion, although this figure improves to £(1.7) billion when excluding liquidity. While net outflows excluding liquidity improved 72%, markets are wary of continued outflows, even if improving. Assets Under Management (AUMA) increased by 9% to £556.0 billion, largely driven by positive market performance rather than net inflows.

• interactive investor (ii): Strong growth with adjusted operating profit up 34%. AUMA reached £97.5 billion, and customer numbers increased by 14%. However, revenue in FY 2026 is expected to see some offsets, with lower FX and trading fees.
• Adviser: Adjusted operating profit decreased by 32% due to strategic repricing. Net outflows improved by 44% to £2.2 billion. The company now expects to return to positive net flows in 2026, targeting £1 billion net inflow in 2027.
• Investments: Adjusted operating profit increased by 5%, driven by operational efficiency. Net outflows were £8.9 billion, but excluding liquidity, net inflows were £0.1 billion. Investment performance improved, with a 3-year performance of 80%.

The increase in adjusted profit was supported by transformation savings exceeding the £150 million target, reaching £180 million in annualised cost savings. Capital requirements were also reduced, increasing total capital coverage to 218%.

CEO Jason Windsor acknowledged the challenges, stating, “Our efforts over the last twelve months mean Aberdeen is in much better shape as we pursue our ambition to be the UK's leading Wealth & Investments group.” He highlighted the progress in Adviser, noting the improved net outflows and client service, while also admitting that more work is needed to return to growth.

Aberdeen Group maintains its FY 2026 Group targets, aiming for adjusted operating profit of at least £300 million and net capital generation of approximately £300 million. The company also targets net capital generation to grow on average 5-10% per annum over the medium term, absent any major market irregularities.

The negative market reaction suggests that markets are placing greater emphasis on flow figures and the sustainability of Aberdeen's turnaround strategy.