abrdn has seen a recovery in its finances, which jumped from an outflow of £5.7bn in the final quarter of 2023 to an inflow of £1.2bn in the same period in 2024.

The investment firm also saw its assets under management and administration (AUMA) increase by 3% in 2024 to £511bn, while its investment net flows improved from an outflow of £19bn to £4bn in the same period.

Its adviser AUMA increased by 2% in 2024, with outflows of £3.9bn in the 2024 financial year, offset by positive markets.

abrdn’s online investment platform, interactive investor, also delivered "continued strong growth", with net inflows almost doubling year-on-year to £5.7bn.

Chief executive officer at abrdn, Jason Windsor, said: "We made significant progress in 2024, exceeding our cost transformation targets and also laying the foundations for the new management team to achieve growth and efficiency as we enter 2025.

"Investments returned to inflow in the quarter, and while there remain challenges to overcome, it was pleasing to see our Institutional & Retail Wealth segment report £2.3bn of positive flow in Q4.

"interactive investor, which achieved the number one position in UK D2C net flows, performed very strongly throughout 2024, and we expect continuation of its growth this year.

"Outflows in adviser are being addressed, with an absolute focus on an improved service and value proposition for our clients."

The firm said that its transformation programme to build a "more efficient and focused company" was "delivering cost savings while allowing investment" in people, technology and data enablement.

In its outlook, abrdn said its operating profit is expected to be in line with current market expectations, "providing a solid base from which to grow".

As a result, abrdn expects an "anticipated significant uplift in contribution" from interactive investor, strong momentum in transformation to deliver £150m in savings by the end of 2025 and continued improvements in investments, underpinned by greater cost efficiency.

Windsor added: "I look forward to providing further information on our performance and strategy with the full year results on 4 March."

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