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Liontrust Asset Management PLC on Friday said the business remains in ‘good health’ despite volatile markets, as profit plummeted on rising costs.
For the six months ended September 30, the London-based asset manager reported pretax profit of £14.1 million, down 55% from £31.1 million a year prior.
This included costs of £28.8 million, up considerably from £8.2 million last year. Liontrust attributed the rise to acquisitions and associated restructuring costs, and the amortisation and impairment of related intangible assets.
The firm bought UK peer Majedie Asset Management Ltd, an investment management company, in December 2021 for £120 million in cash and shares.
At September 30, assets under management and advice were £31.7 billion, down 5.5% over the financial year-to-date, and 11% from the previous year.
As of November 14, AuMA was £33.5 billion, down 8% from £36.5 billion at November 26, 2021.
For the first half, Liontrust reported net outflows of £2.2 billion, swung from £2.1 billion net inflows a year ago.
‘As guardians of our investors' savings, we take this responsibility very seriously. This is particularly important given the current cost of living crisis and the volatility we have seen in investment markets, ’ said Chief Executive John Ions.
‘While we expect this volatility to continue, the Liontrust business remains in good health. The company is financially strong, investment processes are robust, the brand profile is high and positive, and there is extensive client engagement.’
The firm declared an interim dividend of 0.22 pence, unchanged from last year.
Liontrust shares were trading 1.5% higher at 1,120.00p each in London on Friday morning.
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