Standard Life’s profit rises but it warns on lack of clarity over Scotland

Standard Life has revealed a 12 per cent rise in profit for the six months to 30 June.

 

The UK insurance and pensions group said that its operating profit rose to £339m: an increase of £35m from £304m the year before.

 

It said that the increase was driven by a boost in auto-enrolment in the UK, with more workers being enrolled automatically on to company pension schemes. 

 

It is believed that the trend will continue, with 300,000 additional auto-enrolment customers expected before the end of the year. Shares in the company rose by 2.4 per cent in early-morning trading following the news. 

 

But it warned that there remained little clarity over how an independent Scotland would impact business, should voters choose “Yes” at the referendum on 18 September. It said that some issues could have a material effect on the company's UK customers, shareholders, and staff. 

 

As such, it has drawn up a Scottish contingency plan, and is the first major company to do so. Issues that will be taken into consideration include whether an independent Scotland would be part of the EU, the currency that it would use, financial regulation, taxation and the effect on savings and pensions. 

 

In February, Standard Life said that it was getting ready to potentially move operations and staff away from its Edinburgh headquarters as a “precautionary measure to ensure continuity of our businesses’ competitive position”.