Standard Life to report on Tuesday

Standard Life will report its first-half figures on Tuesday 5 August. Analysts are expecting a decline in revenue and net profits.

Standard Life logo
Source: Bloomberg

Standard Life is trading at £3.68 and the stock is down 5.3% since the company announced a 13% decline in full-year profits to £751 million in February, despite it beating the estimate of £712 million. Funds under management were up 12% to £244.2 billion, and the dividend was increased by 8%.

Fund manager Aberdeen Asset Management came under pressure last week when its funds under management declined by 0.6%; one institutional client withdrew £4.2 billion in contracts. Its competitors, Jupiter Fund Management and Schroders, both recently reported an increase in funds under management.

Analysts are broadly bullish on Standard Life. Out of the 23 ratings, nine are buys, 10 are holds and four are sells.

The company is headquartered in Edinburgh but that could change if Scotland votes ‘yes’ to independence in September. IG is offering a binary bet on the outcome of the referendum, and our clients suggest there is a 20% chance of Scotland voting in favour of independence.

Standard Life’s share price is currently just below the 200-day moving average of £3.72, and the next support level down is £3.60. Positive results could push the price to £3.84, putting £4.06 in the crosshairs.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.