Liontrust Asset Management saw an adjusted pre-tax profit of £67.4m for its full financial year to 31 March 2024, according to results published today (26 June), which is a 23% decrease compared to last year’s pre-tax profits of £87.1m.
Gross profit stood at £186.1m, a 19% fall compared to last year’s figure of £229.8m. This included £10.4m of performance fee revenues – a 43.8% decrease relative to last year’s fee revenue of £18.5m.
The business’s adjusted operating margin dipped slightly from 37.7% in 2022/23, to 35.5% over the last year.
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Adjusted diluted earnings per share stood at 79.2p, compared to 109.8p in last year’s results – this marks a 27.9% fall.
While last year saw a statutory pre-tax profit of £49.3m for the business, Liontrust suffered a £600,000 loss during its most recent financial year.
Assets under management slid by 11.5%, from £31.4bn to £27.8bn. Liontrust’s suite of funds – which includes institutional mandates, investment trusts, UK retail funds, MPS, alternative funds, and international funds and accounts – endured net outflows of £6.1bn during the year. Some £4bn of these outflows came from UK retail funds and the firm’s MPS.
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John Ions (pictured), Liontrust’s chief executive officer, said: “The events of the last year have not reduced our belief in active management but have reinforced the need for Liontrust to expand our investment capability across asset classes and investment styles, broaden distribution and enhance the group’s operations.
“As we could not accelerate these developments through an acquisition, we have been pursuing them organically, through recruitment and investment in the business. These actions are ensuring we can drive the business forward and deliver on our strategic objectives.
“We are building the business from a position of strength despite the challenges of the past year. Liontrust has a high-profile and positive brand, excellent investment teams, deep client relationships as well as good operating margins.”
He added: “We are optimistic about the long-term outlook for the UK economy and stockmarket. The UK has not lost the ability to develop world class businesses and it is about providing the incentives and liquidity to encourage such companies to list on the London Stock Exchange. A key part of this is attracting international investors to reinvest back in the UK market.”
