Shares in Standard Life Aberdeen (LON:SLA) have jumped in London this morning as the blue-chip group updated investors on its full-year performance, delivering flat profit. The company further announced that it was scrapping its co-chief executive structure, introduced after the merger between Standard Life and Aberdeen Asset Management, and was appointing Keith Skeoch as its sole CEO.
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As of 09:40 GMT, Standard Life Aberdeen’s share price had added 2.86 percent to 252.00p. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.12 percent higher at 7,159.53 points.
SLA posts FY results
Standard Life Aberdeen announced in a statement this morning that its full-year profit from continuing operations had come in broadly flat at £650 million. The group’s fee-based revenue fell to £1.87 billion, from £2.1 billion a year ago, reflecting the impact of lower assets under management and administration, combined with a reduction in overall revenue margin.
IFRS profit attributable to equity holders, however, increased by 19 percent to £830 million, mainly as a result of the £1.78-billion gain on sale of the UK and European insurance business and the inclusion of full year adjusted profit from Aberdeen.
Standard Life Aberdeen said that it was leaving its dividend unchanged, planning to maintain the payout to shareholders at the 2018 level during the period of transformation.
The FTSE 100 group announced in a separate statement that with effect from today, it was dissolving its current co-chief executive structure, with Keith Skeoch appointed as sole CEO and Martin Gilbert becoming Vice Chairman of Standard Life Aberdeen and Chairman of Aberdeen Standard Investments, “to focus solely on our strategic relationships with key clients”. The company further said that its finance director Bill Rattray would step down at the end of May, to be succeeded as chief financial officer by Stephanie Bruce, a partner at PwC.
“The changes that we have announced today have the unanimous backing of the Board,” the group’s chairman Sir Douglas Flint said in the statement. “The new structure will strengthen our client focus, simplify reporting lines and facilitate robust execution of the next stages of our transition and transformation programmes.”
As of 10:07 GMT, Wednesday, 13 March, Standard Life Plc share price is 364.05p.