Life post-referendum for Aberdeen Asset Management

Following Scotland’s decision not to separate from the United Kingdom, Aberdeen Asset Management has one less issue to worry about.

London Stock Exchange sign
Source: Bloomberg

On Monday 1 December, the markets are expecting Aberdeen Asset Management to post its full-year figures, and the adjusted earnings per share are called to drop from 33.3p down to 30.2p. The last twelve months are expected to have seen sales increase from £1.079 billion up to £1.117 billion. The company is also due to see its pre-tax profits jump from £390.3 million up to £452.588 million.

Institutional consensus about Aberdeen Asset Management continues to be strong with over 60% maintaining a buy recommendation and almost 30% with a hold. When you consider the backdrop to this year, it is extremely encouraging for shareholders that the institutional consensus is so bullish. It is also worth noting that even with the disruption from the Scottish referendum the company is still expecting to see profits jump by more than 15%.

It was notable that before Scotland went to vote, Aberdeen Asset Management and its analysts remained tight lipped on how the company expected things to pan out and what the implications would have been should change have occured.

Year-on-year the company’s shares are down by 6.6% and have found the 460p level a particularly difficult hurdle to clear. The current price is above the moving averages and just below being overbought but should these annual figures meet market expectations, then that might be the final nudge required.

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