Liontrust profits rise as assets under management surge

Independent fund manager Liontrust Asset Management reported adjusted profit before tax of £64.3m in its final results on Wednesday, up 69% year-on-year.

The FTSE 250 company said its adjusted diluted earnings per share were 54% firmer for the 12 months ended 31 March, at 87.4p, while its profit before tax totalled £34.9m, surging 116% from the £16.5m it reported for the 2020 financial year.

Revenues were 54% firmer year-on-year, at £164m.

Liontrust’s board declared a second interim dividend of 36p per share, up from the 24p distribution it announced a year ago.

That would bring the total dividend for the financial year ended 31 March to 47p per share, up 42% on the prior year.

At year-end, assets under management and advice totalled £30.9bn, up 92% over a year earlier, with the same measure rising further to £33.27bn by 18 June.

Net inflows for the year totalled £3.5bn, up 30% from the £2.67bn it reported at the end of the 2020 financial year.

“The momentum behind the business is demonstrated by the industry's sales figures for the first three months of 2021,” said chief executive officer John Ions.

“According to the Pridham Report, Liontrust had the third highest net retail sales in the UK in the first quarter of the year and was placed fifth for gross retail sales.

“The tailwind behind environmental, social and governance (ESG) continues, and Liontrust is benefiting from our sustainable investment team's 20-year track record, proven process and clear reporting on their engagement with companies and the impact of their investments.”

Ions said that, to meet rising interest in sustainability and demand for sustainable investment, the company was planning to launch the Liontrust ESG Trust.

“This is a significant launch for Liontrust in expanding our offering into investment trusts and will enable a wider range of investors to access the sustainable investment team.

“As planned, the initial public offering for the Liontrust ESG Trust will be on 5 July, and will enable Peter Michaelis' team to be unconstrained by market cap, include small cap stocks not held by their open-ended funds, and invest in the highest sustainability companies,” John Ions said.

“In continental Europe, Liontrust has partnered with ABN Amro Investment Solutions to launch a global impact fund which is being distributed in Italy, Luxembourg and Spain.”

Along with sustainable investment, Ions said the company saw “great potential” for its global fixed income, cashflow solution and economic advantage strategies in Europe.

“The importance and benefit of high-quality active fund management with strong long-term performance has been reiterated by the pandemic.

“Our investment teams can allocate the capital that companies and the economy need to deliver a positive outcome and engage to ensure best business practices.

“Active managers also have a role in ensuring that all shareholders can realise the full potential value of a listed company.”

At 0843 BST, shares in Liontrust Asset Management were up 2.33% at 1,668p.