Aberdeen benefits as recovery speeds up

Aberdeen Asset Management revealed interim pre-tax profits leapt from 17.9m to 59.5m in the six months to March 31, or 92.6m on an underlying basis – a record result for the group.

The Scottish-headquartered firm said that as well as the equity market revival, its performance had also been helped by "healthy" flows of money into higher margin products, which led to a rise in fee income of around 26m a year.

Total funds under management leapt to 170.9bn from 96.3bn a year earlier and 146.2bn at the end of last September.

Its performance marks a turnaround on the tough trading seen amid the financial crisis – Aberdeen's interim profits slumped by 45 per cent last year as investors rushed to withdraw cash amid the financial meltdown.

Shares rose by 5 per cent, taking the stock to its highest level in seven months on news of the record-breaking profits, which beat City expectations.

Analysts at Numis Securities said they would upgrade earnings forecasts for Aberdeen this financial year and next with funds under management already at levels expected for the full year.

Aberdeen said the half-year figures were evidence that its strategy of growth by way of "selective acquisition" was working.