Liontrust profits down as assets exceed £9bn

Liontrust profits down as assets exceed £9bn

Liontrust Asset Management saw its profits decrease slightly in the year ending in March 2017.

The company posted profits before tax of £9.1m, a fall of 3 per cent on the previous year.

Liontrust has attributed this fall to increased costs relating to the amortisation of the related intangible asset and other non-cash and non-recurring costs.

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As of the end of March assets under management had increased 35 per cent to £6.5bn but this was boosted by the acquisition of Alliance Trust Investments the following month.

This deal has brought assets under management to £9.3bn as of yesterday (13 June).

Net inflows for the year to the end of March 2017 were £482m while gross sales were more than £2bn.

Meanwhile revenues at Liontrust increased 15 per cent to £51m.

John Ions, chief executive of Liontrust, said these figures were “especially pleasing” since they showed the ability of the company to grow organically.

He said: “It has been another successful year for Liontrust as we have recorded a seventh successive year of positive net flows and have continued to develop the infrastructure of the business.

“The investment we have made in the infrastructure of the company, client servicing and distribution combined with the broadening of the investment proposition create an excellent platform to continue our growth.

“At a time when asset management is up front and central in providing solutions, it is more surprising how confused the industry looks.

“Well managed and focused businesses, whether large or small, should benefit from this and continue to grow successfully.”

Mr Ions added that the addition of ATI’s sustainable investment team gave Liontrust a strong proposition in an area he claimed would “only grow in demand and significance”.

He said: “We now have a presence in many of the core asset classes for UK investors.”