abrdn has reported a return to profitability after posting £187m in profit before tax in its first half results, compared with a £169m in H1 loss last year.

The investment group suggested that this return to profit was helped by the sale of the European-headquartered private equity business of £88m.

abrdn also recorded lower losses of £15m, compared to £181m in H1 last year, from the reduction in the value of the listed stakes held on its balance sheet.

Despite the improvement in profits, the group’s latest trading statement, covering the six months to 30 June, revealed that its net operating revenue was 7% down to £667m, compared with £721m in H1 2023, which reflected the impact of outflows and expected lower margins in the group’s investments.

abrdn has been undergoing a cost-cutting programme and confirmed that it is on track to meet its target of delivering at least £150m of annualised cost savings by the end of 2025, compared to 2023.

The company’s interim CEO, Jason Windsor, said the group had made an “encouraging start” in the first half of the year.

“We have three core businesses, with strong, scale positions in attractive markets and each has headroom to grow,” Windsor said. “While market conditions remain challenging, we are firmly on track to realise at least £150m of annualised cost savings by the end of 2025.

“These are solid foundations, positioning us for a step-change in performance and allowing us to invest further in growth.

“I am excited about the potential in abrdn, and confident that by delivering against our priorities, we can deliver better outcomes for our clients, more attractive performance for our shareholders and nurture a culture that sustains long-term success.”

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