Liontrust Asset Management PLC on Wednesday reported a decreased adjusted pretax profit in its latest year, but ‘is well placed to take advantage’ of the ‘challenging’ environment that it expects.
The London-based asset manager reported statutory pretax profit of £22.3 million for the year ended March 31, swinging from a £579,000 loss the year before. Basic and diluted earnings per share totalled 26.20 pence, against a 5.46p loss.
However, adjusted pretax profit fell 28% to £48.3 million from £67.4 million, while adjusted diluted EPS decreased to 56.8p from 79.2p.
Adjusted pretax profit excludes amortisation, impairment, and non-recurring items, which include IT restructuring costs; severance compensation-related costs; and other one-off expenses.
Liontrust has been ‘engaged in a business transformation programme designed to overhaul [its] operating model’ and last year outsourced its factsheet and regulatory reporting, Non-Executive Chair Luke Savage noted. The firm has also been ‘finalising the outsourcing of trading for investment funds and institutional accounts’.
Liontrust also reported £169.8 million in revenue for the year, down 14% from £197.9 million.
Assets under management at March 31 totalled £22.59 billion, down 19% from £27.82 billion a year prior. Net outflows totalled £4.90 billion, down from £6.08 billion.
Liontrust, which offers equity, fixed income, sustainable, multi-asset and real assets funds, left its full-year dividend unchanged at 72p per share. It has declared a second interim dividend of 50.0p, also unchanged.
‘We believe it will be more challenging for markets to generate the same level of returns in the next few years...This will lead to investors searching for alpha by moving away from passive vehicles to active asset managers, deeper within markets and on a more geographically diverse basis,’ commented Chief Executive Officer John Ions. ‘These investment opportunities include generational low valuations among UK quality companies.
‘Liontrust is well placed to take advantage of this new environment with our highly rated and independently recognised investment teams, high-profile brand, market leading client service, communications and marketing, and strong operations.’
Shares in Liontrust Asset Management were down 9.4% at 373.00p on Wednesday in London.
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