Ees are good: Abrdn to become Aberdeen again under new strategy
Published: 03:51 04 Mar 2025 EST
Abrdn PLC (LSE:ABDN) shares jumped 13% as the fund management and wealth group said it was bringing back two fondly remembered letter-Es into its name.
This was part of a wider strategic update the FTSE 250-listed group announced alongside its results for 2024, which included the first profit growth in three years.
CEO Jason Windsor said set out a strategy "to become a leading wealth & investments group, with new 2026 targets that underline the potential for the profitable growth we see in all of our businesses".
The company's name will be changed to Aberdeen Group, after dropping its vowels back in 2021, after becoming Aberdeen Standard Life.
Results were "a touch ahead of estimates", said analyst Rae Maile at Panmure Liberum, hailing the "new, sensible name".
He noted that new targets included for adjusted operating profit to be “at least £300 million” in 2026, versus a current consensus estimate of £264 million.
"The difference, we believe, being that the market was not giving the company the benefit of cost cutting."
As Aberdeen, the strategic focus will be on UK wealth through the Interactive Investor and Adviser divisions, with Investments targeting areas of specialisation: real assets, credit and specialist equities.
"The surplus in the pension fund is being accessed: while there will be continue to be a P&L charge, there will be a £35 million per annum benefit to capital generation, underpinning future dividend payments to shareholders."
He added: "The market has not believed before in the potential, that will be a harder position to hold today."
