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Interim Results

Liontrust adjusted pre-tax profits up

15 November 2016 07:42

Liontrust Asset Management reports adjusted profit before tax of £6.8 million for the six months to the end of September - an increase of 16% on a year ago.

Revenues totalled £22.0 million (2015: £18.7 million) an increase of 18% compared with the corresponding period last year.

Profit before tax was £2.2 million (2015: £4.2 million) and includes costs of £4.6 million (2015: £1.7 million) relating to the amortisation of the related intangible asset and other non-cash and non-recurring costs.

On 30 September, assets under management were £5.7 billion (2015: £4.4 billion) and at the close of business on 11 November, assets under management were £5.6 billion.

Chief executive John Ions said: "We have continued to grow and enhance the Company over the first half of the financial year. On 30 September 2016, our assets under management reached £5.7 billion and we expanded our fund management capability through the acquisition of the European Income business from Argonaut Capital Partners LLP. This growth has led to an increase in our revenues and the interim dividend by 18% and 33% respectively.

"This expansion has come during a challenging period for fund management groups. The vote on 23 June in favour of Britain leaving the EU and the US Presidential election campaign have exacerbated significantly the political uncertainty this year and the industry has suffered negative sales of equity funds every month in 2016 among retail investors, with the UK All Companies sector being the worst net seller in six of the first nine months of the year. It is, therefore, pleasing that we have generated net positive flows over the last two quarters.

"We are building the Company through focusing on what we do well both in fund management and in running the business. We are staunch believers in the benefits of active fund management over the long term. Passive investments have a key role to play in investors' portfolios but, equally, so do highly skilled active fund managers who can generate outperformance over the long term by applying robust investment processes. It is not a simple either or argument.

"From launch in November 2006 to the end of October 2016, for example, the Liontrust European Growth fund returned 136.6% against 63.6% by the MSCI Europe ex-UK Index. From launch in November 2005 to the end of October 2016, the Liontrust Special Situations Fund returned 298.1% against 103.5% by the FTSE All Share Index.

"We are also focused on engaging with our investors, whether they are institutional investors, professional advisers or private investors. This is essential if we are really to understand their needs and objectives. At the end of January 2017, for example, we will be taking our Annual Investment Conference on the road where we expect our fund managers to present to around 350 intermediaries.

"A demonstration of how much progress we have made is the fact that we can attract someone of the calibre of Ian Chimes to join us as Head of Global Distribution in the New Year. The recruitment of Ian is a key part in the next stage of the development and expansion of Liontrust and is yet another reason why we are looking forward with confidence."

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