Liontrust Asset Management PLC
Half Year Results H1 FY25
November 2024
OUR PURPOSE
To help clients enjoy a better financial future through the power of active management and distinct investment processes
Liontrust's values
COURAGE
Liontrust does not follow the herd and has the courage to have independence of thought
The business has the courage to do the right thing, make decisions and be nimble
Liontrust has the courage to take an active and engaged approach to investing, clients, staff and society
POWER
Liontrust believes in the power of promoting diversity and inclusion across the business, bringing diverse and inclusive thinking and approaches to our purpose
We seek to empower our staff to fulfil their potential and foster an environment in which everyone is engaged and encouraged to actively participate in the business
Liontrust benefits from the power of being dynamic and ambitious, promoting positivity and adaptability to change
PRIDE
We take pride in seeking to act in the best interests of clients and delivering good customer outcomes at all times
Our staff are responsible for upholding the highest standards of integrity, taking pride in being trustworthy and transparent while making decisions with a clear sense of fairness
Everyone takes pride in being responsible for supporting each other, collaborating, treating each other with dignity and respect, and being open-minded to new ideas, challenge and debate
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Highlights
Net flows | AuMA | Adjusted profit | Strong capital | First Interim |
before tax | position | Dividend | ||
maintained |
£(2.1)bn | £26.0bn | £25.8m | £59.6m | 22.0p |
6 months to 30 | As at 30 September | 6 months to | Surplus capital as at | Payable on 8 |
2024 | 30 September 2024 | 30 September 2024 | January 2025 | |
September 2024 |
Source: Liontrust Asset Management, November 2024. This slide includes Alternative Performance Measures (APMs) - see Appendix 6 for the definition of these APMs.
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Half Year Results highlights
First Interim dividend per share maintained at 22.0 pence
The Directors will target a dividend of at least 72 pence per share for the year ending 31 March 2025 A share buyback programme of up to £5 million, phased over the period to 31 March 2025
Business transformation programme, including cost savings of around £4.5 million on an annualised basis
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Market backdrop
Headwinds | Opportunities |
Organic growth is scarce | Golden era for active investors |
Low cost of passives | Is the passive free ride over? |
Higher expected returns from alternatives | Savings rates are too low |
Cash remains a competitor | Greater need for alpha with outlook for lower |
Economic and geopolitical risk | index returns |
Attractive valuations | |
UK Budget | |
Return of price discovery | |
US Elections | |
Consolidation of wealth managers and IFAs | Improving outlook for managed funds |
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Active management
Liontrust has the dual discipline of active management and best in class distribution - to service our clients needs Remarkable period of the last 10 years of more than 10% compound return in S&P
Dual forces of fundamental trade in innovation and disruption, combined with the technical momentum of rise of passive investing
Early winners are not always long-term winners
Equally weighted passive funds are an active decision
We believe now to be a golden opportunity for active managers
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Financial performance
Past performance does not predict future returns
Half Year Results | Half year ended 30 September 2024
Strong capital position with surplus capital of £59.6 million as at 30 September 2024 (£79.1 million as at 31 March 2024)
Gross Profit £81.1 million (30 September 2023: £98.6 million, which includes £6.0 million of performance fees) down
18%. Excluding performance fees, Gross Profit was £81.0 million (30 September 2023 : £92.5 million) down 12%
Adjusted PBT of £25.8 million (30 September 2023 : £36.0 million) down 28%
Adjusted diluted EPS of 30.3p (30 September 2023 : 42.3p) down 28%
Adjusted operating margin of 30.5% (30 September 2023 : 35.9%)
Revenue margin (excluding performance fees) of 0.603% on Average AuMA of £26.9 billion (30 September 2023: 0.627% on Average AuMA of £29.5 billion and 31 March 2024: 0.620% on Average AuMA of £28.3 billion).
First interim dividend of 22.0 pence per share (2023: 22.0 pence) payable on 8 January 2025
This slide includes Alternative Performance Measures (APMs) - see Appendix 6 for the definition of these APMs.
You may get back less than you originally invested. Please refer to the Key Risks slide for more information | 8 |
Reconciliation of adjusted profit to profit before tax | Year ended 30 September 2024
30 Sep 2024 | 30 Sep 2023 | 31 Mar 2024 | Half year | |
£'000 | £'000 | £'000 | Change | |
Profit/(Loss) before tax | 12,504 | (10,126) | (579) | |
Severance compensation and staff reorganisation costs | 2,387 | 1,092 | 3,198 | 119% |
Professional services1 | 6,393 | 8,139 | 15,652 | (21%) |
Intangible asset amortisation | 4,553 | 7,018 | 12,094 | (35%) |
Intangible asset and goodwill impairment | - | 29,912 | 37,065 | |
Adjustments | 13,333 | 46,161 | 68,009 | |
Adjusted profit before tax | 25,837 | 36,035 | 67,430 | (28%) |
1 Includes acquisition related and restructuring costs for Neptune, Architas, Majedie (£0.4m)and Other costs relating to target operating model restructure (£5.4m) and recruitment of Global Equity team from GAM holding AG (£0.5m).
This slide includes Alternative Performance Measures (APMs) - see Appendix 6 for the definition of these APMs.
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