Liontrust pre-tax profits impacted by acquisition costs

Asset management company Liontrust's adjusted pre-tax profits grew in the six months ended 30 September but the group also incurred considerable costs linked to recent acquisitions.

Adjusted pre-tax profits increased 31% during the half to £22.3m, while straight pre-tax profits slumped 26% to £6.9m as a £15.4m bill relating to acquisition and restructuring costs weighed on the group. Gross profits were £63.0m, up 37% year-on-year.

The FTSE 250-listed group saw assets under management and advice increase 28% over the half to £20.6bn, with its acquisition of the Architas UK Investment Business adding £5.6bn.

Net inflows for the period were £1.74bn, an increase of 28% compared to the same period a year earlier.

Chief executive John Ions said on Wednesday: "It has been a challenging period for everyone. Covid-19 continues to affect all parts of the economic and social fabric of the country and its effects will be felt for many years to come.

"I have said before that the asset management industry has a vital role to play in this recovery, from the provision of capital that enables companies and the economy to grow to the equally important role as guardians of people's savings to enable them to lead a better future."

As of 0920 GMT, Liontrust shares were down 1.88% at 1,412.93p.