Liontrust profit plummets in first half

Independent fund management group Liontrust Asset Management announced its half yearly report for the six months to 30 September on Tuesday, with revenues of £22m - an increase of 18% compared to the same period last year.

The company posted adjusted profit before tax of £6.8m, up 16%, while adjusted diluted earnings per share were also up 16% at 11.9p per share.

Profit before tax almost halved, however, to £2.2m from £4.2m.

The board said that included costs of £4.6m relating to the amortisation of an intangible asset and other non-cash and non-recurring costs.

Its board declared an interim dividend per share of 4p, up from 3p, payable on 22 December.

At period end, assets under management were £5.7b - up from £4.4bn.

Net inflows for the six months were £92m, falling from £110m.

“We have continued to grow and enhance the company over the first half of the financial year,” said chief executive John Ions.

“On 30 September 2016, our assets under management reached £5.7bn and we expanded our fund management capability through the acquisition of the European Income business from Argonaut Capital Partners.

“This growth has led to an increase in our revenues and the interim dividend by 18% and 33% respectively.”

Ions said the firm’s 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.”