LONDON, Feb 27 Reuters Profit fell at asset manager abrdn in 2023 and the British firm warned of further pressure on its margins as large clients shift cash away from actively managed funds.

Still, shares surged 6 in early trading as investors welcomed a result that slightly exceeded analyst forecasts, along with a maintained dividend and a seeming absence of big negative surprises.

Abrdn laid out plans to cut 500 roles in January, after worsethanexpected net outflows of client cash in the second half of 2023. Net outflows for the year were 13.9 billion pounds, compared to 10.3 billion pounds of outflows in 2022.

One of Britain39;s best known fund management firms, abrdn has endured years of clients pulling cash and has fallen out of Britain39;s blue chip FTSE 100 stock index.

Chief Executive Stephen Bird is attempting to drive a turnaround by shedding jobs, reducing its range of funds and expanding into massmarket investing, following the takeover of online platform interactive investor in 2022.

Bird reiterated on a call with reporters that he did not favour breaking up the company.

Analysts at Panmure Gordon said in a note that the business case for abrdn39;s structure was unclear, but that it still had upside potential, given its languishing share price.

Perhaps the most important change we have seen is in a considerably less hubristic assessment of performance and prospects and we are delighted that we cannot find a single use of 39;vector39;, analysts at…