REG - Liontrust Asset Mgmt - Annual Financial Report
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RNS Number : 2333O Liontrust Asset Management PLC 25 June 2025
LEI: 549300XVXU6S7PLCL855
Embargoed until 0700 hours, Wednesday 25 June 2025
LIONTRUST ASSET MANAGEMENT PLC
FULL YEAR REPORT FOR THE YEAR ENDED 31 MARCH 2025
Liontrust Asset Management Plc ("Liontrust", the "Company", or the "Group"),
the independent fund management group, today announces its Full Year Report
for the financial year ended 31 March 2025.
· Gross Profit of £157.7 million (2024: £186.1 million), includes
£3.6 million of performance fee revenues (2024: £10.4 million), with a
Revenue margin of 0.60% (2024: 0.62%)
· Adjusted profit before tax of £48.3 million (2024: £67.4 million)
· Adjusted diluted EPS of 56.8 pence per share (2024: 79.2 pence per
share)
· Statutory profit before tax of £22.3 million (2024: loss £0.6
million). See note 6 below for further details and a reconciliation to
Adjusted profit before tax
· Full year dividend for the financial year ended 31 March 2025
maintained at 72p
· Achieved annualised cost efficiencies of around £6.0 million
· Introduction of a new Capital Allocation Policy, which includes a new
dividend policy of a payout ratio of a minimum of 50% of Adjusted diluted EPS,
and returning excess capital to shareholders via share buybacks
· On 31 March 2025, AuMA were £22.6 billion (2024: £27.8 billion)
· AuMA as at 17 June 2025 were £22.7 billion
Commenting, John Ions, Chief Executive Officer, said:
"Client outcomes, experience and engagement are at the heart of everything we
do at Liontrust. We have overhauled our operating model, enhanced distribution
and expanded our fund range to strengthen our proposition as an active asset
manager.
We believe it will be more challenging for markets to generate the same level
of returns in the next few years as over the past decade. This will lead to
investors searching for alpha by moving away from passive vehicles to active
asset managers, deeper within markets and on a more geographically diverse
basis. These investment opportunities include generational low valuations
among UK quality companies.
Liontrust is well placed to take advantage of this new environment with our
highly rated and independently recognised investment teams, high-profile
brand, market leading client service, communications and marketing, and strong
operations.
Kristian Cook has been named Head of Global Distribution, overseeing both UK
and international sales. This ensures a consistency of client service across
markets, strengthens campaign co-ordination, and enables the growth of the
institutional client base worldwide. Our international distribution has been
further strengthened by key hires in Switzerland, the Middle East and Asia.
Liontrust has broadened the alternatives capability with the GF Global Alpha
Long Short Fund managed by Mark Hawtin and his Global Equities team. We have
also launched the GF Pan-European Dynamic Fund, which is now over €400
million in size, and international versions of the Global Dividend, Global
Innovation and Global Technology funds.
Operationally, Liontrust has modernised its infrastructure by implementing
BlackRock's Aladdin platform and outsourcing trading and data services to BNY.
These changes have enhanced investment decision-making, risk management and
global trading capabilities, while also delivering significant cost
efficiencies.
Having fulfilled our commitment to paying a dividend of 72 pence per share for
the financial year ended 31 March 2025 and to support long-term growth and
shareholder value, Liontrust has introduced a new Capital Allocation Policy.
This includes a commitment to pay at least 50% of Adjusted diluted EPS as
dividends and to return excess capital to shareholders via share buybacks.
This will support investment to drive both organic and selective inorganic
growth, aligning with Liontrust's four strategic objectives.
With a strong brand, award-winning investment strategies and a client-centric
approach, Liontrust is well positioned to take advantage of opportunities for
active asset managers and our investors in a rapidly evolving environment."
( )
(*) Includes Alternative Performance Measures, see note 2.
For further information please contact:
Liontrust Asset Management Plc (Tel: 020 7412 1700, Website:
liontrust.co.uk)
Stephen Corbett: Head of Investor Relations
Simon Hildrey: Chief Marketing Officer
Singer Capital Markets (Tel: 020 7496 3000)
Corporate Broking: Charles Leigh-Pemberton
Corporate Finance: James Moat
Panmure Liberum (Tel: 020 7886 2500)
Corporate Broking: David Watkins
Corporate Advisory: Atholl Tweedie
This announcement contains inside information for the purposes of article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018) ("UK MAR")).
Chair's Statement
These are my first Annual Results as Chair of Liontrust. I have taken on the
role at a testing time for Liontrust and at what could well be a pivotal
moment for the active asset management sector as a whole.
The share price performance of Liontrust over the past year has not been what
any of us would have wanted. But Liontrust has not been alone in facing a
difficult environment; we have seen this across active asset managers more
generally. Liontrust's success going forward, however, will be driven by our
own investment processes and performance, client relationships and engagement,
brand and operating model.
Having been Chair now for nearly nine months, I have come to really understand
the business and its strengths. I believe the Group has done everything it can
to manage its way through the current environment in the best way possible.
There is much for us to be optimistic about while being cognisant of the
challenges that are still facing active asset managers including Liontrust.
People
I want to start with the most important part of Liontrust: its people. They,
ultimately, determine the success of the Group.
Since becoming Chair, I have been impressed by the quality of the people,
right across the business. This includes not just the senior leadership and
the fund managers, but also the unsung heroes behind the scenes who
collectively ensure the smooth running of the business and its strong
governance. From the Executive Directors down through every department, the
staff at Liontrust have remained resolutely focused on what needs to be
achieved; sticking to what the Group does best.
This includes the investment teams who have been consistent in applying their
rigorous investment processes to the funds they manage. Over the 30 years
since being established, Liontrust has had an unshakeable belief in the power
of active asset management through the application of robust investment
processes for the benefit of clients.
We remain committed to and steadfast in our confidence in the investment teams
and their processes, including those strategies that have found the last three
years challenging, negatively impacting net flows and therefore having a
leveraged impact on the fall in the share price.
Strategy and execution
Management is not simply standing still and waiting for a turn in performance;
far from it. Liontrust has been proactive in developing its capabilities to
drive future growth while actively managing the current cost base of the
business. This has been done with the full support of the Board, which remains
fully committed to Liontrust's strategy and its execution. The foundations
have been laid for growth and we will see these bearing fruit as we go
forward.
These include diversification of the fund range, with further product
development over the past year and more in the pipeline. On distribution, we
have been communicating to and engaging with existing clients to an even
greater extent than before while seeking to expand the client base across
different channels, including among institutional investors, and
internationally.
All of this will play a key role in the Group returning to positive flows and
generating growth. The strategy and its execution is explained in detail in
John Ions' Chief Executive Officer's Report that follows.
Business transformation
The Group has also been engaged in a business transformation programme
designed to overhaul Liontrust's operating model. This includes implementing
BlackRock's Aladdin platform; a Middle-Office operating model with BNY; BNY
Front Office Services; and a new enterprise data platform - BNY Data Vault.
The Group also outsourced factsheet and regulatory reporting in 2024 and has
been finalising the outsourcing of trading for investment funds and
institutional accounts to BNY's Buyside Trading Solutions service. These
changes are strengthening data management, delivery and analysis across the
business while also providing operational and cost efficiencies.
Liontrust has also achieved cost efficiencies through a reduction in roles
across the business. Annualised savings of employee-related, member and
non-staff related expenses are expected to be around £6.0 million with
one-off implementation costs for the role reductions and non-staff related
expenses anticipated to be around £4.5 million.
Capital Allocation Policy
Having fulfilled our commitment to paying a dividend of 72 pence per share for
the financial year ended 31 March 2025, Liontrust is now announcing a new
Capital Allocation Policy ("CAP") that will support the Group to continue to
be a profitable business by applying surplus capital to organic investment in
growth opportunities and selective M&A as consolidation continues in the
sector. The CAP is aligned with our strategic objectives and includes a new
dividend policy of paying out a minimum of 50% of Adjusted diluted EPS(1) and
returning excess capital to shareholders via share buybacks to ensure the
business is well positioned for the future. The CAP and dividend policy are
explained in detail immediately after the Chief Executive Officer's Report.
Leadership
The experience which the leadership team at Liontrust has of managing the
business through different economic and market cycles gives the Board great
confidence. The team has worked together for a long time and, in some cases,
has been at the Group for over two decades. They have been through tough
environments before, including the bursting of the TMT boom, the Global
Financial Crisis, Brexit and Covid.
This experience has, as in the previous situations, enabled management to hold
their nerve during the recent challenges and make the right decisions now to
ensure growth in the future. I am confident the business will emerge in a much
better shape and a stronger position as a result.
Dividend
The Board has declared a second interim dividend of 50.0 pence per share
(2024: 50.0 pence per share) bringing the total dividend for the financial
year ending 31 March 2025 to 72.0 pence per share (2024: 72.0 pence per
share).
The second interim dividend will be payable on 8 August 2025 to shareholders
who are on the register as at 4 July 2025, the shares going ex-dividend on 3
July 2025. Last day for Dividend Reinvestment Plan elections is 18 July 2025.
Results
Gross Profit of £157.7 million (2024: £186.1 million), includes £3.6
million of Performance fee revenues (2024: £10.4 million), with a Revenue
Margin of 0.60% (2024: 0.62%) on Average AuMA of £25,671 million (2024:
£28,330 million).
Adjusted profit before tax is £48.266 million (2024: £67.430 million), a
decrease of 28.2% compared to last year, with an Adjusted Operating Margin of
29.4% (2024: 35.5%).
Statutory Profit before tax of £22.292 million (2024: loss of £0.579
million), This includes charges of £26.0 million (2024: £68.0 million)
relating to non-recurring costs (£16.4 million); the non-cash amortisation of
the acquisition-related intangible assets (£9.6 million).
Adjusted profit before tax is disclosed to give shareholders an indication of
the profitability of the Group excluding non-cash (intangible asset
amortisation) expenses and non-recurring (professional fees relating to
acquisition, cost reduction, restructuring and severance compensation related)
expenses. See note 6 below for a reconciliation of Adjusted profit before tax.
Looking forward
I am happy that Liontrust has been doing the right things over the past year
to ensure that the business is well positioned for the future, thanks to the
hard work of everyone in the Group. This includes strong client relationships
and experiences, seeking to broaden the client base in the UK and
internationally, expanding the fund range, strengthening the operating model,
implementing efficiencies, and developing our technological, data and digital
capability.
(*) Includes Alternative Performance Measures, see note 2
Luke Savage
Non-executive Chair
24 June 2025
Chief Executive Officer's Report
At the core of Liontrust is our conviction in active asset management
underpinned by disciplined investment processes. While even the most
successful strategies may experience periods of underperformance, particularly
when market trends favour specific styles, sectors or capitalisations, we
remain confident in our approach. The recent domination of a few mega-cap
stocks globally has posed challenges to active managers, but we believe the
environment is shifting back in their favour.
Market recovery and active management
The proportion of the US equity representation within the MSCI World index has
increased consistently over the last 15 years from 45% to 68%, providing
strong alpha generation despite the US GDP share globally being static. If the
US dollar remains weak, however, it will be hard for the concentrated,
passive-driven trend of the last 10 years to continue to provide the best
risk-adjusted returns. There are estimates that returns from US equities over
the next 10 years will be lower than they have been over the past decade,
making it harder for investors to generate the returns to meet their liability
requirements. In the first five months of 2025, the negative alpha
contribution from the US market has been bigger than in any of the last 15
years.
This will present an opportunity for active managers because investors will
need to seek alpha by moving away from passive vehicles, deeper within markets
and on a more geographically diverse basis. Through the execution of our four
strategic objectives, Liontrust is in a strong position to take advantage of
these trends, and we are already seeing growing client interest in
diversifying exposure geographically, including to Europe and the UK.
Competitive advantage
We have maintained our strong reputation among clients and potential clients
across the strategies, which will enable Liontrust to take advantage of the
emerging market environment. Liontrust is widely recognised as a leader in
sustainable investing among both professional intermediaries and retail
investors. In June 2024, European Dynamic Fund was named the best Europe ex-UK
fund at the Fund Manager of the Year awards for the third successive year,
and, along with the European Strategic Equity Fund, was shortlisted again this
year. Japan Equity was the other Liontrust fund to have been nominated.
Liontrust continues to elevate the client experience. Independent research
ranks Liontrust as a market leader in client service and communications. This
is based on the focus by the distribution and marketing teams on understanding
clients and their digital behaviour, strategic targeting, deep product
knowledge, relentless client activity, engaging communications and strong
visibility. In the first quarter of 2025 alone, the distribution team
conducted over 1,000 meetings with clients and prospects and hosted 47 group
events and webinars. Notably, our November 2024 investment conference at the
Science Museum attracted more than 300 professional intermediaries.
Continue to diversify our investment offering
We have broadened our alternatives capability with the launch of the
Irish-domiciled GF Global Alpha Long Short Fund managed by Mark Hawtin and his
Global Equities team. In January 2025, the Economic Advantage team's Alex
Wedge and Bobby Powar took on management of the Global Smaller Companies Fund,
using the same investment process that has been applied to the UK Smaller
Companies Fund since 1998.
Over the past year, we have also launched the GF Pan-European Dynamic Fund,
which is now over €400 million in size, and Irish-domiciled versions of the
Global Dividend, Global Innovation and Global Technology funds.
Expanding distribution and the client base
We have been expanding our international distribution capability. Òscar
Andreu was appointed Managing Director, Head of Distribution for Switzerland,
in March 2025, with a focus on the wholesale and institutional markets. This
was followed by Phil Rosenberg being appointed Distribution Head of Middle
East and Asia. Phil is building on Liontrust's existing clients in these
regions who are currently invested with the Cashflow Solution and the Global
Equities teams.
With Liontrust now having clients across Europe and in South America, South
Africa, the Middle East and Australia, we have brought international
distribution together with the UK under Kristian Cook, who is now Head of
Global Distribution. This will ensure consistency of client service in every
market, collaboration on campaigns and fund manager time with clients across
the whole Distribution team, and a focus on growing our institutional client
base.
Strengthen our technological, data and digital capability
Liontrust has overhauled our operating model, which has led to centralising
functions, realising cost synergies and efficiencies, and ensuring the
management team is equipped with the expertise to make informed decisions
during challenging market conditions.
We have strengthened data management, delivery and analysis across the
business through the implementation of Aladdin's enterprise portfolio
management system, which is integrated with a new data ecosystem. This single,
integrated front-office solution is bringing significant benefits to our
investment management and risk teams and clients.
Liontrust has also outsourced trading for investment funds and institutional
accounts to The Bank of New York Mellon Corporation ("BNY") Buy-Side Trading
Solutions Group. This provides Liontrust with access to a global network of
brokers and venues, allowing us to respond to market developments in real-time
and extend our capabilities beyond UK trading hours. Liontrust can leverage
BNY's global trading solutions, which reaches 100 global markets across all
major asset classes, including a wide range of fixed income and derivative
products.
Outlook
Liontrust continues to build on the strong foundations of the business by
executing our four strategic objectives. Achieving these objectives will be
aided by a new Capital Allocation Policy which is set out after this Report.
Our investment strategies have maintained their strong reputation and
independent recognition, and we are broadening our offering, including in
alternatives for which we believe there will be strong demand.
Client outcomes, experience and engagement is at the heart of everything we do
at Liontrust. With our relentless activity, events and digital marketing, we
have a strong understanding and appreciation of clients, their behaviours and
requirements. We have been expanding our distribution, especially
institutionally and internationally. This has extended our client base from
Australia, through Europe and the Middle East, to South America.
Technological innovation is another pillar of Liontrust's strategy. The
implementation of Aladdin's portfolio management system and a new data
ecosystem has enhanced investment decision-making, risk management and client
reporting. Outsourcing trading to BNY has further improved execution
capabilities and our global reach.
This impressive progress in the development of the business to achieve our
four strategic objectives puts Liontrust in a very strong position to take
advantage of the opportunities for active asset managers. Our brand,
communications, distribution, operating model and strong capital position will
enable Liontrust to deliver growth.
(*) Includes Alternative Performance Measures, see note 2
John Ions
Chief Executive Officer
24 June 2025
Capital Allocation Policy
Our new Capital Allocation Policy ("CAP"), which is effective for the
financial year ending 31 March 2026 and thereafter, is aligned to the Group's
strategic objectives and will support the Group's continued profitability with
surplus capital applied to organic investment and inorganic opportunities.
As part of the new CAP, our dividend policy has been updated to reflect a
disciplined approach to capital management, targeting a sustainable dividend
funded by current earnings. As such, Liontrust's dividend policy will be to
pay a minimum of a 50% of Adjusted diluted EPS in ordinary dividends, to be
paid to shareholders following the publication of the Company's Half Year and
Annual results. It is expected that the split between the first and second
interim dividends will be around one third to two thirds respectively.
Liontrust will also implement a share buyback programme which will return
incremental excess capital to shareholders; only buying back shares when it
makes economic sense to do so and with the quantum of buybacks also dependent
on the amount of surplus capital spent on organic investment and inorganic
opportunities.
Note, in exceptional circumstances, when Performance Fee Profit is in excess
of recent average Performance Fee Profit, then the dividend payout ratio may
be adjusted to below the minimum to avoid undue volatility in dividends paid.
(*) Includes Alternative Performance Measures, see note 2
Asset under Management and Advice
On 31 March 2025 our AuMA stood at £22,590 million and were broken down by
type and investment process as follows:
Process Total Institutional Accounts & Funds Investment Trusts UK Retail Funds & MPS Alternative Funds International Funds & Accounts
(£m) (£m) (£m) (£m) (£m) (£m)
Sustainable Investment 8,137 309 - 7,602 - 226
Economic Advantage 4,255 384 - 3,807 - 64
Multi-Asset 3,829 - - 3,664 73 92
Global Equities 1,062 - - 1,041 21 -
Global Innovation 770 - - 767 - 3
Cashflow Solution 2,770 517 - 1,813 248 192
Global Fundamental 1,767 206 1,126 435 - -
Total 22,590 1,416 1,126 19,129 342 577
(*) Includes Alternative Performance Measures, see note 2
Net flows
The net outflows over the Period were £4,904 million (2024: £6,083 million).
A reconciliation of net flows and AuMA over the Period is as follows:
Total Institutional Accounts & Funds Investment Trusts UK Retail Funds & MPS Alternative Funds International Funds & Accounts
(£m) (£m) (£m) (£m) (£m) (£m)
Opening AuMA - 1 April 2024 27,822 1,741 1,135 23,815 236 895
Net flows (4,904) (316) (51) (4,293) 71 (315)
Market & Investment performance (328) (9) 42 (393) 35 (3)
Closing AuMA - 31 March 2025 22,590 1,416 1,126 19,129 342 577
(*) Includes Alternative Performance Measures, see note 2
Consolidated Statement of Comprehensive Income
Financial year ended 31 March 2025
Year ended Year ended
31-Mar-25 31-Mar-24
(audited) (audited)
Notes £'000 £'000
Revenue 4 169,790 197,889
Cost of sales 4 (12,088) (11,828)
Gross profit 157,702 186,061
Realised profit on sale of financial assets 85 184
Unrealised gain on financial assets 58 838
Administration expenses 5 (137,633) (188,932)
Operating profit/(loss) 20,212 (1,849)
Interest receivable 2,162 1,337
Interest payable (82) (67)
Profit/(Loss) before tax 22,292 (579)
Taxation 7 (5,596) (2,911)
Profit/(Loss) for the period 16,696 (3,490)
Other comprehensive income - -
Total comprehensive income 16,696 (3,490)
Pence Pence
Basic earnings per share 8 26.20 (5.46)
Diluted earnings per share 8 26.20 (5.46)
Consolidated Balance Sheet
As at 31 March 2025
31-Mar-25 31-Mar-24
(audited) (audited)
Notes £'000 £'000
Assets
Non current assets
Intangible assets 9 39,367 48,472
Goodwill 10 32,110 32,110
Property, plant and equipment 2,241 3,719
73,718 84,301
Current assets
Trade and other receivables 11 200,993 229,586
Financial assets 12 3,866 8,157
Cash and cash equivalents 75,901 104,318
Total current assets 280,760 342,061
Liabilities
Non current liabilities
Deferred tax liability (8,946) (11,227)
Lease liability (1,514) (2,538)
Total non current liabilities (10,460) (13,765)
Current liabilities
Trade and other payables (205,856) (241,363)
Total current liabilities (205,856) (241,363)
Net current assets 74,904 100,698
Net assets 138,162 171,234
Shareholders' equity
Ordinary shares 637 648
Capital redemption reserve 19 19
Retained Earnings 150,445 183,461
Own shares held (12,939) (12,894)
Total equity 138,162 171,234
Consolidated Cash Flow Statement
Financial year ended 31 March 2025
Year ended Year ended
31-Mar-25 31-Mar-24
(audited) (audited)
£'000 £'000
Cash flows from operating activities
Profit/(Loss) after taxation 16,696 (3,490)
Adjustments for income statement non-cash charges/income:
Depreciation of PPE 1,648 1,975
Write-off of PPE - 30
Amortisation of intangible assets 9,555 11,480
Impairment of intangible assets - 37,153
Interest receivable (2,162) (1,337)
Interest income 2,162 1,337
Share based payment charges 1,871 665
Disposal of mLTIP shares (606) (385)
Tax paid (8,400) (18,695)
Tax expense/(credit) 5,596 2,911
Foreign exchange (gains)/ losses - 109
Fair value gains on investments (58) (1,134)
Adjustment for statement of financial position movements:
(Increase)/ decrease in trade and other receivables 29,534 12,096
(Decrease)/ increase in trade and other payables (35,209) (14,509)
Net cash generated from operating activities 20,627 28,206
Cash flows from investing activities
Purchase of property, plant and equipment (592) (142)
Loan to GAM - (8,900)
Loan repaid by GAM - 8,900
Purchase of financial assets (599) (1,493)
Sale of financial assets 3,121 4,348
Purchase of seeding investments (783) (328)
Sale of seeding investments 2,174 371
Net cash from investing activities 3,321 2,756
Cash flows from financing activities
Payment of lease liability (1,293) (1,525)
Purchase of own shares (5,055) -
Dividends paid (46,017) (46,156)
Net cash used in financing activities (52,365) (47,681)
Net decrease in cash and cash equivalents (28,417) (16,719)
Opening cash and cash equivalents 104,318 121,037
Closing cash and cash equivalents 75,901 104,318
Cash and cash equivalents consist only of cash balances.
Restated presentation of Consolidated Cash Flow Statement
The directors have restated the Consolidated Cash Flow Statement for the
financial year to 31 March 2024 to reflect the requirements set out in IAS 7
when adopting the indirect method of presentation for cash generated from
operating activities. These changes involve adjusting net profit for non-cash
items, changes in working capital, and other adjustments to reconcile to the
net cash flow from operating activities, instead of presenting cash receipts
and payments as three aggregated lines. There is no change to net cash
generated from operating activities for these periods.
Cash flows from investing and financing activities remain consistent with the
previous presentation, detailing cash flows from acquisitions, disposals,
non-operating investments and financing activities.
Consolidated Statement of Change in Equity (audited)
Financial year ended 31 March 2025
Share Capital Retained Own shares Total
capital redemption earnings held Equity
£ '000 £ '000 £ '000 £ '000 £ '000
Balance at 1 April 2024 brought forward 648 19 183,461 (12,894) 171,234
Profit for the period - - 16,696 - 16,696
Total comprehensive income for the period - - 16,696 - 16,696
Dividends paid - - (46,017) - (46,017)
Share buyback (11) - (4,999) - (5,010)
Purchase of own shares - - - (279) (279)
Equity share options issued - - 1,910 - 1,910
LTIP dividends settled through equity - - (43) - (43)
Sale of own shares - - (563) 234 (329)
Balance at 31 March 2025 637 19 150,445 (12,939) 138,162
Consolidated Statement of Change in Equity (audited)
Financial year ended 31 March 2024
Share Share Capital Retained Own shares Total
capital premium redemption earnings held Equity
£ '000 £ '000 £ '000 £ '000 £ '000 £ '000
Balance at 1 April 2023 brought forward 648 112,510 19 121,341 (13,537) 220,981
Loss for the period - - - (3,490) - (3,490)
Total comprehensive income for the Period - - - (3,490) - (3,490)
Dividends paid - - - (46,156) - (46,156)
Cancellation of share premium account - (112,510) - 112,510 - -
Purchase of own shares - - - - (381) (381)
Sale of own shares - - - (1,024) 1,024 -
Members' share incentive award exercises - - - (385) - (385)
Equity share options issued - - - 665 - 665
Balance at 31 March 2024 648 - 19 183,461 (12,894) 171,234
Notes to the Financial Statements
1 Principal accounting policies
The Group's accounting policies are consistent with those set out in the
Annual Report and Accounts for the year ended 31 March 2024.
a) Going concern
The financial information presented within these financial statements has been
prepared on a going concern basis under the historical cost convention (except
for the measurement of financial assets at fair value through profit and loss
and Deferred Bonus and Variable Allocation Plan ("DBVAP") liability which are
held at their fair value). The Group is reliant on cash generated by the
business to fund its working capital. The Directors have assessed the
prospects of the Group and parent company over the forthcoming 12 months,
including an assessment of current trading; budgets, plans and forecasts; the
adequacy of current financing arrangements; liquidity, cash reserves and
regulatory capital; and potential material risks to these forecasts and the
Group strategy. This assessment includes consideration of a severe but
plausible downside scenario in which AuMA falls by 20%. The Directors confirm
that as a result of this assessment they have a reasonable expectation that
the Group and parent company will continue to operate and meet its liabilities
as they fall due for at least 12 months from the date of signing these
accounts.
b) Accounting estimates and judgements
The preparation of the financial statements in conformity with IFRS requires
the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group's
accounting policies. Estimates and judgements used in preparing the financial
statements are periodically evaluated and are based on historical experience
and other factors, including expectations of future events that are believed
to be reasonable. The resulting accounting estimates may not equal the related
actual results. There are no significant judgements. The Directors make a
number of estimates, these include leases (note 1k in the financial statements
for the year ended 31 March 2024) and share based payments (see note 1p in the
financial statements for the year ended 31 March 2024), neither of which are
considered to be significant. In addition, the Directors make estimates to
support the carrying value of goodwill and intangibles that arise on
acquisition.
Goodwill and Intangible assets
Goodwill arising on acquisitions is capitalised in the consolidated balance
sheet. Goodwill is carried at cost less provision for impairment. The carrying
value of goodwill is not amortised but is tested annually for impairment or
more frequently if any indicators of impairment arise. Goodwill is allocated
to a cash generating unit ("CGU") for the purpose of impairment testing, with
the allocation to those CGUs that are expected to benefit from the business
combination in which the goodwill arose (see note 14 of the Financial
Statements to 31 March 2024).
The costs of acquiring intangible assets such as fund management contracts are
capitalised where it is probable that future economic benefits that are
attributable to the assets will flow to the Group and the cost of the assets
can be measured reliably. The assets are held at cost less accumulated
amortisation and impairment. An assessment is made at each reporting date, on
a standalone basis for each intangible asset, as to whether there is any
indication that the asset in use may be impaired. If any such indication
exists and the carrying value exceeds the estimated recoverable amount at the
time, the assets are written down to their recoverable amount. The recoverable
amount is measured as the greater of fair value less costs to sell and value
in use. Further information on the impairment testing and estimates used are
contained in note 10.
The fund management contracts and segregated clients' contracts relating to
the assets acquired as part of the acquisitions of Alliance Trust Investments
Limited; Neptune Investment Management Limited; Architas Multi-Manager Limited
and Architas Advisory Services Limited (together "Architas") and Majedie
Investment Management Limited are recorded initially at fair value and
recorded in the consolidated financial statements as intangible assets, they
are then amortised over their useful lives on a straight-line basis.
Management have determined that the useful life of these assets is between 5
and 10 years owing to the nature of the acquired products. Impairment is
tested through measuring the recoverable amount against the carrying value of
the related intangible asset. The recoverable amount is the higher of the fair
value less costs to sell and its value in use. The Directors assess the value
in use using a multi-period excess earnings model which requires a number of
inputs requiring management estimates, the most significant of which include:
future AuMA growth, useful economic life and discount rate. In the current
period, significant estimates were only required for the intangible assets in
relation to Architas and Majedie (see notes 10 and 11 for further detail).
Impairment losses on goodwill, where these are identified, are not reversed.
Impairment is tested through measuring the recoverable amount against the
carrying value of the related goodwill. The recoverable amount is the higher
of the fair value less costs to sell the CGU and its value in use. Value in
use is assessed using a multi-period excess earnings model which requires a
number of inputs requiring management estimates and judgements, the most
significant of which are: future new business, AuMA growth, discount rate and
terminal growth rate.
In the current period, significant estimates were only required to be
reassessed for the goodwill assets in relation to Architas and Majedie (see
notes 10 and 11 for further details). Due to the strong performance and growth
of the Sustainable Investment team (acquired as part of the ATI acquisition)
and the Global Equity team (acquired as part of the Neptune acquisition) since
acquisition there is no significant estimation in relation to the impairment
of the related goodwill allocated to the Sustainable and Global Equity
Investment teams' CGU.
c) Regulatory capital position
Following the approval of the Group's Internal Capital and Risk Assessment
("ICARA") process in September 2024, and further reviewed following the end of
financial year ended 31 March 2025, the updated capital position for the Group
is shown below:
31-Mar-25 31-Mar-24
£m £m
Capital after regulatory deductions(1) 75.6 101.9
Regulatory capital requirement(2,3) 18.1 22.9
Surplus capital 57.5 79.0
Foreseeable dividends(4) (31.4) (31.9)
Surplus capital after foreseeable dividends 26.1 47.1
(1) Group Capital minus own shares, intangibles and goodwill adjusted for
deferred tax liabilities
(2) For the financial year ended 31 March 2025, the Group capital requirement
is estimated and will be finalised as part of the September 2025 prudential
capital assessment process.
(3) For the financial year ended 31 March 2024, the Group capital requirement
calculated as part of the September 2024 prudential capital assessment
process.
(4) The second interim dividend of 50.0 pence per share paid or to be paid in
August following the financial year end
2 Adjusted performance measures ("APMs")
ADJUSTED PROFIT BEFORE TAX
Definition: Profit before taxation, amortisation, impairment, and
non-recurring items (which includes: IT restructuring costs; severance
compensation related costs and other one-off costs including lease payments
and share based payments.
Reconciliation: Note 6.
Reason for use: This is used to present a measure of profitability of the
Group which is aligned to the requirements of shareholders, potential
shareholders and financial analysts, and which removes the effects of non-cash
and non-recurring items, which eases the comparison with the Group's
competitors who may use different accounting policies and financing methods.
Specifically, calculation of Adjusted profit before tax excludes amortisation
and impairment expenses, and costs associated with acquisitions, restructuring
and severance compensation related costs. It provides shareholders, potential
shareholders and financial analysts a consistent year on year basis of
comparison of a "profit before tax number", when comparing the current year to
the previous year and also when comparing multiple historical years to the
current year, of how the underlying ongoing business is performing.
ADJUSTED OPERATING PROFIT
Definition: Operating profit before:
1. Interest received/paid;
2. Taxation;
3. Amortisation of acquisition related intangible assets;
4. Impairment of acquisition related intangible assets and goodwill;
5. Expenses, including professional and other fees relating to
acquisitions and potential acquisitions;
6. All employee and member severance compensation related costs;
7. Significant reorganisation expenses related to systems and outsourced
services that enhance our target operating model; and
8. Other cash, and non-cash expenses which are non-recurring in nature.
Reconciliation: Note 6.
Reason for use: This is used to present a measure of operating profitability
of the Group which is aligned to the requirements of shareholders, potential
shareholders and financial analysts, and which removes the effects of
significant acquisitions, financing and capital investment, which eases the
comparison with the Group's competitors who may use different accounting
policies and financing methods.
ADJUSTED OPERATING MARGIN
Definition: Adjusted operating profit divided by Gross profit.
Reconciliation: Note 6.
Reason for use: This is used to present a consistent year on year measure of
Adjusted Operating Profit compared to Gross Profit, identifying the operating
gearing within the business.
ADJUSTED DILUTED EARNINGS PER SHARE or EPS
Definition: Adjusted profit before tax divided by the diluted weighted average
number of shares in issue.
Reconciliation: Note 6. Reason for use: This is used to present a measure of
profitability per share in line with the adjusted profit as detailed above.
PERFORMANCE FEE REVENUES
Definition: Revenue attributable to performance related fees.
Reconciliation: Note 4.
Reason for use: This is used to identify distinguish management fee revenues
from performance related fees from other revenues.
PERFORMANCE FEE PROFIT
Definition: Profit attributable to performance related fees.
Reconciliation: Performance Fee Revenues multiplied by Adjusted Operating
Margin
Reason for use: This is used to identify profits resulting from Performance
Fee Revenues.
GROSS PROFIT EXCLUDING PERFORMANCE FEES
Definition: Gross Profit less any revenue attributable to performance related
fees.
Reconciliation: Note 4.
Reason for use: This is used to present a consistent year on year measure of
gross profits within the business, removing the element of revenue that may
fluctuate significantly year-on-year.
REVENUE MARGIN
Definition: Gross Profit excluding performance fees, less cost of sales
divided by the average AuMA.
Reconciliation: Note 4.
Reason for use: This is used to present a measure of profitability over
average AuMA.
ASSETS UNDER MANAGEMENT AND ADVICE ("AUMA")
Definition: the total aggregate assets managed or advised by the Group.
Reconciliation: A detailed breakdown of AuMA is shown above.
Reason for use: AuMA is a key performance indicator for management and is used
both internally and externally to determine the direction of growth of the
business. When used intra-month (i.e. AuMA for dates that are not a month end
date) or used at month end but early in the following month then the AuMA for
some accounts, funds or portfolios may not be the most recent actual AuMA,
rather it will be the most recent available AuMA which may be the previous
month end AuMA or the most recently available AuMA.
AVERAGE ASSETS UNDER MANAGEMENT AND ADVICE ("AVERAGE AUMA")
Definition: The average of aggregate assets managed or advised by the Group
during the relevant period.
Reconciliation: Average AuMA for the year is the average of each month end
aggregate AuMA during the relevant period.
Reason for use: Average AuMA shows AuMA without the volatility of short-term
Net Flows and allows for comparability between years.
NET FLOWS
Definition: Total aggregate sales/inflows into Group funds and portfolios less
total redemptions/outflows from Group funds accounts and portfolios. If
positive may also be referred
to as "Net inflows" and where negative as "Net outflows".
Reconciliation: A detailed breakdown of net flows is shown above.
Reason for use: Net flows is a key performance indicator for management and is
used both internally and externally to assess the organic growth of the
business. For certain MPS accounts, the net flow number is not available from
the relevant administrator, so the net flow number is derived from the
difference between the starting and ending AuMA adjusted for investment
performance, if there is a reliable source for the investment performance. For
certain MPS accounts where there is no reliable investment performance
benchmark, the flows are not included.
3 Segmental reporting
The Group operates only in one business segment - Investment management.
The Group offers different fund products through different distribution
channels. All financial, business and strategic decisions are made centrally
by the Board, which determines the key performance indicators of the Group.
The Group reviews financial information presented at a Group level. The Board,
is therefore, the chief operating decision-maker for the Group. The
information used to allocate resources and assess performance is reviewed for
the Group as a whole. On this basis, the Group considers itself to be a
single-segment investment management business.
4 Revenue
Year ended Year ended
31-Mar-25 31-Mar-24
(audited) (audited)
£'000 £'000
Revenue
- Revenue 166,148 187,480
- Performance fee revenue 3,642 10,409
Total Revenue 169,790 197,889
Cost of sales (12,088) (11,828)
Gross Profit 157,702 186,061
Gross Profit excluding Performance Fees 154,060 175,652
Average AuMA (£m) 25,671 28,330
Revenue Margin (%) 0.60% 0.62%
Revenue from earnings includes:
· Investment management fees on unit trusts, open-ended investment
companies' sub-funds, portfolios and segregated accounts.
· Performance fees on unit trusts, open-ended investment companies
sub-funds, portfolios and segregated accounts.
· Fixed administration fees on unit trusts and open-ended
investment companies sub-funds.
· Net value of sales and repurchases of units in unit trusts and
shares in open-ended investment companies (net of discounts).
· Net value of liquidations and creations of units in unit trusts
and shares in open-ended investment companies sub-funds.
· Box profits on unit trusts - the "at risk" trading profit or loss
arising from changes in the valuation of holdings of units in Group Unit
Trusts held to help manage client sales into, and redemptions from, the trust.
· Foreign currency gains and losses.
· Less contractual rebates paid to customers.
Cost of sales includes:
· Operating expenses including (but not limited to) keeping a
record of investor holdings, paying income, sending annual and interim
reports, valuing fund assets and calculating prices, maintaining fund
accounting records, depositary and trustee oversight and auditors.
· Sales commission paid or payable to third parties.
· External investment advisory fees paid or payable.
Performance fee revenue
Performance fee revenue include fees that are subject to arrangements whereby
fees are deferred from prior periods but are only recognised and received
following another period of outperformance. During the year £3.6 million of
performance fees are recognised. In future periods another £3.6 million may
be received. As there is no certainty that such deferred fees will be
collectable in future years, the Group's accounting policy is to include
performance fee revenue in income only when they become due and collectable
and therefore the element (if any) deferred beyond 31 March 2025 has not been
recognised in the results for the year.
(*) Includes Alternative Performance Measures, see note 2
5 Administration expenses
Year ended Year ended
31-Mar-25 31-Mar-24
(audited) (audited)
£'000 £'000
Employee related expenses
Wages and salaries 26,178 32,324
Social security costs 3,616 2,613
Pension costs 2,191 2,502
Share incentivisation expense 1,860 1,271
DBVAP expense 1,855 2,953
Severance compensation 2,615 3,198
38,315 44,861
Member related expenses
Members' drawings charged as an expense 33,157 36,445
Members' share incentivisation expense 229 1,040
Members' severance 141 -
33,527 37,485
Total Employee and Member related expenses 71,842 82,346
Non-staff related expenses
Professional and other services 13,663 15,652
Intangible asset amortisation 9,555 12,094
Intangible asset and Goodwill impairment - 37,065
Depreciation 1,648 1,975
Other administration expenses 40,925 39,800
65,791 106,586
Total Administration expenses 137,633 188,932
Analysis of staff costs is set out below:
Year ended Year ended
31-Mar-25 31-Mar-24
(audited) (audited)
£'000 £'000
Direct Employment & Member related Wages, Salaries, Social Security &
Pensions
Fund Managers 40,397 43,360
Other Employees and Members 24,745 30,524
65,142 73,884
Incentivisation (Share & DBVAP) - Other Employees & Members 3,944 5,264
Employee and Member severance compensation 2,756 3,198
71,842 82,346
Analysis of Professional and other services is set out below:
Year ended Year ended
31-Mar-25 31-Mar-24
(audited) (audited)
£'000 £'000
Professional and other services
GAM acquisition related costs(1) - 9,508
Neptune/Architas/Majedie acquisition related costs(2) 578 559
Business Transformation Programme(3) 12,174 5,585
International Distribution and Product expansion(4) 911 -
13,663 15,652
(1) GAM Holding AG related acquisition costs, primarily corporate finance,
sponsor, due diligence, target operating model design, Class 1 circular and
Swiss public offer; and legal expenses.
(2) Other acquisition related costs includes one-off cost of £396k in the
period relating to disposal of lease.
(3) Cost related to the implementation of the Business Transformation
Programme as set out above in the Chair's statement.
(4) Costs related to the broadening of our international distribution and fund
range (recruitment of the Global Equity team from GAM Holding AG) which
relates to £3m share based payment charge spread across three years in line
with service conditions.
6 Adjusted profit before tax
Adjusted profit before tax is reconciled in the table below:
Year ended Year ended
31-Mar-24 31-Mar-24
(audited) (audited)
£'000 £'000
Profit/(Loss) before tax for the period 22,292 (579)
Severance compensation and staff reorganisation costs 2,756
3,198
Professional and other services(1) 13,663 15,652
Intangible asset amortisation 9,555 12,094
Intangible asset and Goodwill impairment - 37,065
Adjustments 25,974 68,009
Adjusted profit before tax 48,266 67,430
Interest receivable (2,162) (1,337)
Interest payable - -
Adjusted operating profit 46,104 66,093
Adjusted operating margin 29.23% 35.5%
Adjusted diluted earnings per share (excluding performance fees) 55.56 74.82
Adjusted diluted earnings per share 56.81 79.16
(1) for further details see note 5 above.
(*) Includes Alternative Performance Measures, see note 2
7 Taxation
The Full year tax charge has been calculated at the estimated full year
effective UK corporation tax rate of 25% (31 March 2024: 25%).
8 Earnings per share
The calculation of basic earnings per share is based on profit after taxation
and the weighted average number of Ordinary Shares in issue for each period as
shown in the table below. Shares held by the Liontrust Asset Management
Employee Trust ("Liontrust EBT") are not eligible for dividends and are
treated as cancelled for the purposes of calculating earnings per share.
Diluted earnings per share is calculated on the same bases as set out above,
after adjusting the weighted average number of Ordinary Shares for the effect
of options to subscribe for new Ordinary Shares that were in existence during
the financial year ended 31 March 2025 as shown in the table below. This is
reconciled to the actual weighted number of Ordinary Shares as follows:
31-Mar-25 31-Mar-24
Weighted average number of Ordinary Shares 63,717,195 63,875,440
Weighted average number of dilutive Ordinary shares under option:
- to Liontrust Long Term Incentive Plan - 22,911
- to Liontrust SAYE 1,384 -
Adjusted weighted average number of Ordinary Shares 63,718,579 63,898,351
As at 31 March 2025, Ordinary Shares in issue were 63,764,615 and the
Liontrust EBT held 1,020,294 Ordinary Shares.
9 Intangible assets
Intangible assets represent investment management contracts that have been
capitalised upon acquisition and are amortised on a straight-line basis over
their useful economic lives.
The intangible asset on the balance sheet represents investment management
contracts as follows:
31-Mar-25 31-Mar-24
£'000 £'000
Investment management contracts acquired from ATI 2,400 3,600
Investment management contracts acquired from Neptune 14,060 17,185
Investment management contracts acquired from Architas 18,382 21,674
Investment management contracts acquired from Majedie 2,167 2,476
Segregated client contracts acquired from Majedie 2,358 3,537
39,367 48,472
ATI and Neptune
There were no indicators of impairment for ATI, Neptune and Architas
intangible asset as at 31 March 2025 based on the AuMA and flow of funds being
in line with management expectations (31 March 2024: no impairment).
Majedie
For Majedie, indicators of impairment were identified for the Majedie
investment management contracts intangible assets as at 31 March 2025 due to
higher than expected fund outflows leading to actual revenues being lower than
originally forecast. The value of the intangible assets have therefore been
retested as at 31 March 2025 which has resulted in no material impairment of
the Majedie investment management contract intangible (31 Mar 2024: impairment
of £16.537 million on Majedie investment management contract and £6.828
million on Majedie Segregated Clients intangible due to higher than expected
fund outflows leading to actual revenues being lower than originally
forecast).
Sensitivity analysis was carried out on the Majedie Funds model to assess the
impact of reasonable plausible downside scenarios on both the discount rate,
and the net AuMA growth rate assumptions. In relation to Majedie sensitivity,
changing the discount rate from 12.5% to 13.6% leads to £62k reduction in
headroom but no material impairment and changing the net AuMA growth rate from
4.1% to 3.1% leads to £68k reduction in headroom but no material impairment.
The cumulative impact of the change in discount rate and decrease net AuMA
growth rate leads to £127k reduction in headroom but no material impairment.
The discount rate used in the intangible models was a market participant
weighted average cost of capital, determined using the capital asset pricing
model (post-tax) and calibrated using current assessments of market equity
risk premium, company risk / beta, small company premium, tax rates and
gearing; and specific risk premium for the relevant intangible asset. The
appropriate discount rate is appraised at the date of the relevant transaction
and then also at the reporting date to enable impairment reviews and testing.
The same discount rate applies to all CGUs as they all have uniform risk
profile that reflects risk of the business with the same internal company
operations. Within our reasonable plausible downside, we do not consider the
impact of investor sentiment on ESG factors from the climate targets to be a
material risk in the medium and long term to our recoverable amount and
therefore have not considered these risks in the reasonable plausible downside
scenarios.
During the year, we acquired GAM Star Alpha Technology Fund for a value of
£450,000 and was fully amortised during the year.
10 Goodwill
Goodwill is allocated to the CGU to which it relates as the underlying funds
acquired in each business acquisition are clearly identifiable to the ongoing
investment team that is managing them. For all four CGUs, an assessment was
made in relation to impairment of the goodwill where the recoverable amount,
based on a value in use, was calculated using an earnings model which used key
assumptions such as discount rate and net AuMA growth rate. For ATI, Architas
and Neptune, no reasonable changes made to key assumptions lead to an
impairment. The projected cash flows used within the goodwill model is based
on a 5-year period where the terminal growth is used for years beyond that,
and forecasts have been approved by senior management.
The discount rate was derived from the Group's weighted average cost of
capital and takes into account the weighted average cost of capital of other
market participants. The net AuMA growth rate is a combination of three
variables: AuMA market growth rate, fund flows and fund attrition. The net
AuMA growth rate is determined by using external sources to estimate future
growth based on historic equities/bonds performances. In addition, the
terminal growth rate is also based on external sources too and based on long
term inflation expectations. See table below for details.
Goodwill Goodwill
31 Mar 2025
31 Mar 2024
£'000 £'000
ATI 11,873 11,873
Neptune 7,668 7,668
Architas 7,951 7,951
Majedie 4,618 4,618
Total 32,110 32,110
Discount Rate Discount Rate Terminal Growth Rate Terminal Growth Rate Net AuMA Net AuMA
31 Mar 2025
31 Mar 2024
31 Mar 2025
31 Mar 2024
Growth Rate
Growth Rate
31 Mar 2025
31 Mar 2024
ATI 12.50% 13.00% 2% 2% 4.0% 4.5%
Neptune 12.50% 13.00% 2% 2% 6.7% 7.3%
Architas 12.50% 13.00% 2% 2% 2.7% 0.3%
Majedie 12.50% 13.00% 2% 2% 7.1% 2.2%
For Architas, ATI and Neptune, there were no indicators of impairment (31 Mar
2024: no indicators of impairment for ATI and Neptune. Architas recoverable
amount was £35.2m and the headroom above the carrying amount of the CGU was
£5.5m). In FY25, there were indicators of impairment for Majedie as a result
of an increase in net outflows which led to actual revenues being lower than
originally forecast. Based on key assumptions in the above, the Majedie
recoverable amount was £20.1m and the headroom above the carrying amount of
the CGU was £11.3m (31 Mar 2024: Majedie recoverable amount was £10.6m which
was lower than the carrying value resulting in an impairment of £6.4
million).
Sensitivity analysis was carried out on the Majedie Goodwill model to assess
the impact of reasonable plausible downside scenarios on the discount rate and
the AuMA effective growth rate assumptions. In relation to Majedie
sensitivity, changing the discount rate from 12.5% to 13.6% and net AuMA
growth rate from 7.1% to 6.1% would lead to a reduction of £1,921k and £660k
respectively on the headroom and no impairment to Goodwill for either changes.
The cumulative impact of the change in discount rate and decrease net AuMA
growth rate would lead to decrease in headroom by £2,494k.
11 Trade and other receivables
31-Mar-25 31-Mar-24
£'000 £'000
Trade receivables
- Fees receivable 13,451 19,465
- Unit Trust sales and cancellations 177,965 201,748
Prepayments and accrued income 8,359 8,365
Corporation tax receivable 1,218 8
200,993 229,586
All financial assets listed above are non-interest bearing. The carrying
amount of these non-interest bearing trade and other receivables approximates
their fair value and their credit risk is considered low.
12 Financial assets
The Group holds financial assets that have been categorised within one of
three levels using a fair value hierarchy that reflects the significance of
the inputs into measuring the fair value. These levels are based on the degree
to which the fair value is observable and are defined as follows:
- Level 1 fair value measurements are those derived from quoted prices
(unadjusted) in active markets for identical assets and liabilities;
- Level 2 fair value measurements are those derived from inputs other than
quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices); and
- Level 3 fair value measurements are those derived from valuation techniques
that include inputs for the asset or liability that are not based on
observable market data.
As at the balance sheet date all financial assets are categorised as Level 1.
Under IFRS9 all financial assets are categorised as Assets held at fair value
through profit and loss.
The financial assets consist of units held in the Group's collective
investment schemes as part of a 'manager's box, assets held by the EBT in
respect of the Liontrust DBVAP and assets held in Liontrust Global Funds plc
to assist administration. The holdings are valued on a mid or bid basis.
13 Related party transactions
During the year the Group received fees from unit trusts and ICVCs under
management of £146,772,000 (2024: £166,177,000). Transactions with these
funds comprised creations of £11,407,582,000 (2024: £11,266,216,000) and
liquidations of £7,232,782,000 (2024: £7,109,313,000). Directors can invest
in funds managed by the Group on commercial
terms that are no more favourable than those available to staff in general. As
at 31 March 2025 the Group owed the funds £178,648,424 (2024: £202,733,732)
in respect of creations and was owed £189,834,573 (2024: £216,208,769) in
respect of cancellations and fees.
During the year the Group received fees from offshore funds under management
of £16,040,000 (2024: £8,912,000). Transactions with these funds comprised
purchases of £nil (2024: £nil). and sales of £nil (2024: £nil). As at
Total fees the Group was owed £595,000 (2024: £1,231,693) in respect of
offshore fund fees.
Directors and management can invest in funds managed by the Group on
commercial terms that are no more favourable than those available to staff in
general.
14 Post balance sheet date event
There were no post balance sheet events.
15 Key risks
The Directors have identified the risks and uncertainties that affect the
Group's business and believe that they will be substantially the same for this
year as the current risks as identified in the 2024 Annual Report. These can
be broken down into risks that are within the management's influence and risks
that are outside it.
Risks that are within management's influence include areas such as the
expansion of the business, prolonged periods of under-performance, loss of key
personnel, human error, poor communication and service leading to reputational
damage and fraud.
Risks outside the management's influence include falling markets, terrorism, a
deteriorating UK economy, investment industry price competition and hostile
takeovers.
Management monitors all risks to the business; they record how each risk is
mitigated and have warning flags to identify increased risk levels. Management
recognises the importance of risk management and view it as an integral part
of the management process which is tied into the business model and is
described further in the Risk management and internal control section on page
40 of the 2024 Annual Report and Note 2 "Financial risk management" on page
153 of the 2024 Annual Report.
16 Contingent assets and liabilities
The Group can earn performance fees on some of the segregated and fund
accounts that it manages. In some cases a proportion of the fee earned is
deferred until the next performance fee is payable or offset against future
underperformance on that account. As there is no certainty that such deferred
fees will be collectable in future years, the Group's accounting policy is to
include performance fees in revenue only when they become due and collectable
and therefore the element (if any) deferred beyond 31 March 2025 has not been
recognised in the results for the period.
17 Directors' responsibilities statement
To the best of their knowledge and belief, the Directors confirm that:
The financial statements, prepared in accordance with the applicable set of
accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit or loss of the company and the undertakings
included in the consolidation taken as a whole; and the strategic report
includes a fair review of the development and performance of the business and
the position of the issuer and the undertakings included in the consolidation
taken as a whole, together with a description of the principal risks and
uncertainties that they face.
We consider the annual report and accounts, taken as a whole, is fair,
balanced and understandable and provides the information necessary for
shareholders to assess the group's position and performance, business model
and strategy.
The announcement includes a fair summary of the development and performance of
the business and the position of Liontrust Asset Management Plc and the
undertakings included in the consolidation taken as a whole and a description
of the principal risks and uncertainties that they face.
By Order of the Board
John S. Ions Vinay K. Abrol
Chief Executive Officer Chief Financial Officer
24 June 2025
Forward Looking Statements
This Full Year Results announcement contains certain forward-looking
statements with respect to the financial condition, results of operations and
businesses and plans of the Group. These statements and forecasts involve risk
and uncertainty because they relate to events and depend upon circumstances
that have not yet occurred. There are a number of factors that could cause
actual results or developments to differ materially from those expressed or
implied by these forward-looking statements and forecasts. As a result, the
Group's actual future financial condition, results of operations and business
and plans may differ materially from the plans, goals and expectations
expressed or implied by these forward-looking statements. Liontrust
undertakes no obligation publicly to update or revise forward-looking
statements, except as may be required by applicable law and regulation
(including the Listing Rules of the Financial Conduct Authority). Nothing in
this announcement should be construed as a profit forecast or be relied upon
as a guide to future performance.
The 2025 Annual Report and Accounts is expected to be posted to shareholders
on or around 4 July 2024.
The release, publication, transmission or distribution of this announcement in
jurisdictions other than the United Kingdom may be restricted by law and
therefore persons in such jurisdictions into which this announcement is
released, published, transmitted or distributed should inform themselves about
and observe such restrictions. Any failure to comply with the restrictions may
constitute a violation of the securities laws of any such jurisdiction.
Shareholder services
A Dividend Reinvestment Plan ("DRIP") is provided by Equiniti Financial
Services Limited. The DRIP enables the Company's shareholders to elect to have
their cash dividend payments used to purchase the Company's shares. More
information can be found at www.shareview.co.uk/info/drip. The closing date
for DRIP elections is 18 July 2025.
Equiniti Limited, our registrar, may be able to provide you with a range of
services relating to your shareholding. If you have questions about your
shareholding or dividend payments, please contact Equiniti Limited by calling
+44 (0) 371 384 2030 or visit www.shareview.co.uk
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