Liontrust profit doubles as revenue climbs 40%

Liontrust profit doubles as revenue climbs 40%

Liontrust’s profit before tax more than doubled over the financial year as revenues climbed 40 per cent.

In annual results to March 31, 2022, published today (June 22), the asset management firm recorded a profit before tax of £79.3mn, an 127 per cent improvement on its last pre-tax profit of £34.9mn in 2021.

Revenue also jumped 40 per cent, to £245.6mn from £175mn the previous year. Chief executive Jon Ions also pointed to his firm’s “strong sales” over the 12-month period behind this growth.

The board confirmed a second interim dividend of 50p per share, bringing the total dividend for the financial year to 72p per share, an increase of 53 per cent compared with last year.

Shares in Liontrust were, however, down around 1.3 per cent this morning.

In April, the asset manager revealed net inflows fell by £1bn over the financial year to £2.5bn, down 29 per cent compared to inflows of £3.5bn the previous year.

Outflows totalled around £646mn for the year, and included a £329mn outflow following the loss of an investment mandate for the Verbatim growth funds.

In the firm’s results today, Ions acknowledged “a more challenging” economy for fund flows across the industry.

“While there will always be periods when the investment teams' funds will underperform indices and peer groups, we have full confidence in the investment expertise and processes at Liontrust that have shown they can help investors reach their investment goals over the long term,” said Ions.

“We must not lose sight of what we as asset managers are trying to achieve in managing people's savings for the long term.”

Assets under management and advice sat at £33.5bn, up from £30.9bn in March 2021, marking an increase of 8.5 per cent. As of June 17, these assets had risen to £34.2bn.

Including the Majedie Asset Management acquisition completed in April which added £5.2bn, the firm’s assets sit at around £38.7bn.