Standard Life Aberdeen abandons co-CEO set-up; annual profit dips

Asset manager Standard Life Aberdeen posted a 1.5% dip in full-year pre-tax profit on Wednesday as revenue declined and the company said it has abandoned its co-chief executive set-up, with Martin Gilbert stepping down to leave Keith Skeoch in charge.

SLA, which was created through the merger of Aberdeen Asset Management and Standard Life, said the decision to end the co-CEO arrangement was unanimously approved by the board of directors. As part of the changes, Gilbert will become vice chairman of Standard Life Aberdeen and chairman of Aberdeen Standard Investments.

The company said this will allow him to focus solely on strategic relationships with clients, winning new business and "realising the potential from our global network and product capabilities".

"The management changes now being announced are designed to strengthen our client focus, simplify reporting lines and put in place a structure which will facilitate robust execution of the next stages of our transition and transformation programmes," it said.

In its 2018 results, SLA said adjusted pre-tax profit slipped to £650m from £660m the year before, as lower revenue was largely offset by a reduction in operating expenses and the inclusion of its share of Phoenix adjusted profits from 1 September 2018.

Meanwhile, IFRS profit attributable to equity holders rose 19% during the year to £830m, mainly as a result of the £1.78bn gain on sale of the UK and European insurance business and the inclusion of full year adjusted profit from Aberdeen.

Total assets under management and administration declined to £608.1bn from £551.5bn and fee-based revenue fell 11% to £1.9bn.

SLA declared a final dividend of 14.3p, taking the total dividend to 21.6p, up 1.4% on the year.

CEO Keith Skeoch said: "We are working hard to deliver what is within our control. Our integration process is running ahead of schedule and is now roughly 75% complete even though we are less than halfway through the original timetable.

"We are encouraged by improvements in investment performance in key areas, and our 'new active' capabilities mean that we are set up well to capitalise on the trends and opportunities shaping our industry - while continuing to deliver value and returns for our shareholders."

At 0905 GMT, the shares were up 3.4% to 253.25p.