Aberdeen Asset Management boss Martin Gilbert dismisses sale talk

Aberdeen boss Martin Gilbert has come out fighting after predicting an end to the turmoil in emerging markets and quashing rumours the money management firm is up for sale.

The fund chief gave a resolute assessment of Aberdeen’s beleaguered fortunes, arguing stock markets in the Asia-Pacific region had hit their nadir and would mount a comeback.

“They will improve. We won’t see another August and September like we did. Things have bottomed out and people are not as negative as they were.

“It’s a tough time. We just have to wait for emerging markets to come back into fashion,” Gilbert said.

The slump in the region’s stock market, heightened by the collapse of the Chinese market in August, slashed the company assets to £283.7 billion from £324.4 billion last year, it said.

The firm has seen 10 consecutive quarters of outflows, putting pressure on the Scottish group and triggering a 4% fall in shares on Monday, down 13.1p to 321.7p.

Gilbert said it was “completely untrue” that he was trying to sell the company after reports surfaced last month he was engineering a sale.

The 60-year-old said he planned to stay on for at least another decade in a bid to match the retirement age of former Manchester United (and Aberdeen FC) manager Sir Alex Ferguson, who stepped down when he was 71 years old.

“I have told the board I will give them two years’ notice before I go. I hope it will be an internal successor,” he said.

Net revenues rose 5% to £1.17 billion while pre-tax profits weakened slightly to £353.7 million from £354.6 million in 2014.

The company, which has more than £500 million stored on its balance sheet, boosts its full-year dividend by 8% to 19.5p.

Cutting costs, including putting an end to the firm’s sponsorship of the Cowes sailing regatta and not replacing exiting staff, has helped to take the edge off the profits dip, Gilbert said.

Investors, especially sovereign wealth funds, pulled £16.4 billion from the business during the period.