AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Gross Profit Decline: Gross profit decreased to £81.1m, down from £98.6m in 2023.
- Profit Before Tax: Adjusted profit before tax fell to £25.8m, while statutory profit turned positive at £12.5m.
- Strategic Actions: The company has launched a £5m share buyback and aims for £4.5m in annual cost savings.
Liontrust Asset Management Plc (LSE:LIO) has released its Half Year Report for the six months ending 30 September 2024, revealing a decline in profits alongside a series of strategic actions to improve financial performance.
Financial Performance
For the half-year period, Liontrust reported a gross profit of £81.1 million, a decrease from £98.6 million in 2023, which was mainly driven by lower performance fees. Excluding these fees, the decline was more moderate, from £92.5 million to £81.1 million. Adjusted profit before tax also fell to £25.8 million, compared to £36.0 million in the same period last year. Despite the drop in adjusted profit, the company reported a statutory profit before tax of £12.5 million, a significant improvement from a loss of £10.1 million in 2023.
Dividends and Share Buyback
In line with its dividend policy, Liontrust has declared an unchanged first interim dividend of 22.0 pence per share, maintaining its commitment to rewarding shareholders. The Directors have also set a target dividend of at least 72 pence per share for the full year ending 31 March 2025. Furthermore, the company has announced a share buyback programme of up to £5 million, which will be executed over the remainder of the financial year, reflecting confidence in its long-term strategy.
Cost Savings and Strategic Adjustments
Liontrust is also implementing cost-saving measures, targeting annual savings of £4.5 million by the end of the current financial year. These initiatives are part of a broader strategy to enhance operational efficiency and manage costs amidst challenging market conditions.
Assets Under Management
As of 30 September 2024, assets under management and advice (AuMA) stood at £26.0 billion. By 14 November 2024, this figure had decreased slightly to £25.2 billion. Despite the reduction in AuMA, the company remains focused on maintaining a strong position in the investment management industry.
Outlook
Liontrust continues to prioritize a disciplined approach to cost management and shareholder returns. The company’s strategic measures, including the share buyback and cost savings, are expected to position it for future growth, while the targeted dividend demonstrates its commitment to delivering consistent value to shareholders.
