Liontrust confident despite reporting lower profits, cutting dividend

(Sharecast News) - Liontrust Asset Management reported lower annual profits and cut its full-year dividend on Wednesday, although the fund manager said outflows had slowed and its acquisition of River Global Holdings was expected to complete at the end of June.

Gross profit fell to �123.0m in the year ended 31 March from �157.7m, while the revenue margin narrowed to 0.55% from 0.60%.

Adjusted pre-tax profit declined to �30.5m from �48.3m, and statutory pre-tax profit fell to �14.4m from �22.3m. Adjusted diluted earnings per share dropped to 36.7p from 56.8p.

Assets under management and advice stood at �19.55bn at the year end, down from �22.59bn a year earlier, after net outflows of �4.18bn were partly offset by �1.15bn of market and investment performance.

The company declared a full-year dividend of 19p per share, down from 72p.

Liontrust said AuMA had since risen to �21.45bn as at 19 June, with total net outflows of �276m in the quarter to that date and gross institutional inflows of more than �500m.

River Global had AuMA of �2.96bn as at 19 June, with �39m of net inflows in the quarter.

The company said the FCA had approved the change in control for River Global, with completion expected on 30 June.

Chief executive John Ions said improving flows over the past nine months reflected the expansion of Liontrust's international distribution and broader client base, adding that River Global would accelerate diversification and add investment styles that Liontrust could distribute to a wider range of clients.

At 1042 BST, shares in Liontrust Asset Management were up 13.44% at 333.5p.

Reporting by Josh White for Sharecast.com.

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