Liontrust profits skyrocket 93% as adviser roadshows return

Liontrust Asset Management profits have increased 93% on an adjusted basis over the last year as the fund house steps up its face-to-face marketing with advisers and wealth managers.

The group’s adjusted profit before tax was £43.1m for the period ended September 2021, compared to £22.3m for the same period last year, according to its half-year results. On a non-adjusted basis profits rose 352% to £31.1m from £6.9m in its half-year results for 2020.

Liontrust had assets under management and advice of £35.7bn at the end of the period, up 15% from the start of the financial year and 73% higher than AUMA in the 2020 half-year results. Net inflows were £2.1bn over the six-month period compared to £1.7bn last year.

The asset manager is doubling its first interim dividend to 22p per share. Chairman Alastair Barbour said the dividend increase aimed to create more balance between the first and second interim dividends.

Liontrust chief executive John Ions noted the business had moved from virtual to in-person meetings with clients over the reporting period enabling the company to present its multi-asset proposition at physical events for the first time since it acquired Architas UK last year. To date, it has presented to around 450 advisers via its roadshows.

“Even with the return of physical events, Liontrust continues to develop and expand our communications with investors and our capability of delivering these digitally to different audiences,” Ions said. “We have generated 66,000 views for our recent investment videos, for example, and have seen a 77% increase in website traffic from the third quarter in 2020 to the third quarter in 2021.”

Peel Hunt said the results would be supportive for Liontrust shares, but it maintained its hold rating for the stock stating its estimate of £39.1bn AUMA for the full-year results looked “challenging, if achievable”.

“Liontrust trades at a current-year earnings multiple of just under 20x and this appears justified by today’s positive news for both earnings and dividends. Ultimately, however, performance is driven by AUM and we see more limited scope for upgrading estimates for this input at this stage,” the analyst note said.

Liontrust AUMA for H1 2021