REG - Liontrust Asset Mgmt - Half-year Financial Report
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RNS Number : 2378I Liontrust Asset Management PLC 20 November 2025
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")).
LEI: 549300XVXU6S7PLCL855
Embargoed until 0700 hours, Thursday 20 November 2025
LIONTRUST ASSET MANAGEMENT PLC
HALF YEAR REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
Liontrust Asset Management Plc ("Liontrust", the "Company", or the "Group"),
the independent fund management group, today announces its Half Year Report
for the six months ended 30 September 2025.
· Adjusted profit before tax(1) of £15.7 million (2024: £25.8
million). Statutory profit before tax of £7.3 million (2024: £12.5 million).
See note 6 below for further details and a reconciliation to Adjusted profit
before tax.
· Awarded two institutional mandates in aggregate of around £250
million which we expect to be funded before the end of December 2025.
· Additional cost efficiencies of around £1.5 million on an annualised
basis to be implemented by the end June 2026.
· First Interim dividend per share of 7.0 pence.
· A share buyback programme of up to £10 million, phased over the
period to 30 June 2026.
· On 30 September 2025, assets under management and advice ("AuMA")
were £22.0 billion. AuMA as at 12 November 2025 were £22.0 billion.
(1) This is an Alternative Performance Measure, see note 2 below.
Commenting, John Ions, Chief Executive Officer, said:
"Liontrust is focused on delivering for our clients. Over the first eight
months of the financial year, we have had extensive engagement with existing
and prospective clients, from South America, through Europe and the Middle
East, to Australia.
We have been hosting face-to-face discussions and presentations throughout the
UK, as well as participating at partner events, culminating in our investment
conference in London last week. This activity enables us to provide clients
with access to all our investment teams and present the full range of our
capabilities, which is especially important given the UK continues to be out
of favour, with another £1.2 billion withdrawn from UK equity funds by
domestic investors in October(2).
This activity is a key part of broadening the client base and providing a
strong service to clients. This is enhanced by the tailored digital delivery
of investment insights and communications and market-leading support,
including literature and educational material. It has been encouraging to
receive very positive feedback direct from clients on the strength of our
relationships, the quality and level of support we provide, and the Liontrust
brand.
The engagement with clients has strengthened our confidence in the outlook for
flows. The engagement and strong Liontrust brand engender both loyalty in
existing clients and, allied to distinct processes and long-term performance,
will lead to increased flows in time. This is demonstrated by recently winning
two institutional mandates in aggregate of around £250 million which will
soon be funded.
The return to net inflows has taken longer than we expected. Yet, below the
headline flow numbers, it has been pleasing to see the broadening of clients
who are investing across our fund range.
We are also confident about rising demand for active management, as clients
increasingly focus on diversifying away from the concentration risk posed by
passive vehicles weighted to the largest stocks in the US and global indices.
The market cap share of the 10 largest US-listed companies is now at 42% while
US valuations are at their most expensive over the past 100 years(3).
Liontrust can capture this need for diversification as there is strong
performance across investment teams, including European equities, fixed
income, global equities, long/short equities and Multi-Asset, and we offer
differentiated exposure. The 20 largest stocks represent 31.7% of the MSCI AC
World Index; in contrast, the weightings of these stocks in three of
Liontrust's global equity funds are 11.9% (SF Global Growth), 20.7% (Global
Innovation), and 21.9% (Global Alpha).
These underweight positions show the high conviction of our investment
processes. There are times when this conviction can hurt but sticking to our
disciplined processes is reassuring to clients and aids them in their
portfolio construction, complementing both other active managers and passive
vehicles.
As investment managers and as a business, we must look forward, not backwards.
Liontrust has a strong foundation from which to grow. As of today, all of our
investment teams each manage £1 billion or more in AuMA, giving them the
scale to attract institutional clients. The brand is very strong, which
creates awareness, engagement and loyalty. Along with client service, this
should not be underestimated in its importance for future growth. We
continually enhance the business, whether this is through the execution of
investment processes, digitalisation and implementation of technology, or the
operating model.
We are confident that the flows will be turned and the excellent delivery for
clients from across Liontrust will be rewarded."
(2) Source: Calastone
(3) Source: Goldman Sachs Global Investment Research
Additional cost efficiencies
We are continuing to simplify our operating structure and leverage
efficiencies across the business. These actions are designed to strengthen our
financial position, support long-term growth and align with our strategic
objectives. As part of this process, we expect to deliver annualised savings
of approximately £1.5 million by the end of June 2026 at a cost of around £1
million. These savings will come from streamlining processes and optimising
resource allocation, without compromising our ability to service clients or
invest in strategic priorities.
Share buyback programme
As at 30 September 2025 the Company had surplus capital after foreseeable
dividends of over £30.3 million (as set out in note 1d below). In accordance
with our new Capital Allocation Policy and the Board's belief that Company's
shares are significantly undervalued, the Company will initiate a share
buyback programme with an aggregate value of up to £10 million, to be phased
over the period to 30 June 2026. The shares purchased by the Company will be
cancelled.
For further information please contact:
Liontrust Asset Management Plc (Tel: 020 7412 1700, Website: liontrust.com)
Stephen Corbett: Head of Investor Relations
Simon Hildrey: Chief Marketing Officer
Panmure Liberum (Tel: 020 7886 2500)
Corporate Broking: David Watkins
Corporate Advisory: Atholl Tweedie
Singer Capital Markets (Tel: 020 7496 3000)
Corporate Broking: Charles Leigh-Pemberton
Corporate Finance: Asha Chotai
Chair's Statement
As an organisation, we are feeling great frustration: frustration with the
fact that all the hard work and progress which Liontrust is making across the
business is not yet yielding visible results, in terms of flows, profits and
the share price, as quickly as we all want.
We are committed to the strategy of the business, believing it will drive the
successful growth of Liontrust in time. The strategy, implemented through the
tireless dedication of everyone at Liontrust, is having an impact and we are
already seeing signs that this will lead to a better shape of the business for
the future.
Liontrust has talented investment teams with strong processes. While there are
always periods when even robust and repeatable processes underperform the
market and the average of their sector, we have full confidence in them. The
Liontrust teams review how they can enhance the execution of their processes,
including through the appropriate application of AI, which is another
demonstration of the commitment to delivering for clients at Liontrust.
A number of Liontrust teams and funds are benefiting from client interest in
diversifying away from US large caps, along with the strength of their
processes and long-term performance. This is helping to broaden the client
base, particularly internationally. We are positive about the potential
pipeline of business, with two institutional mandates close to funding, which
will lead to a more diversified and hence sustainable business.
While we are optimistic about the outlook for organic growth, we have always
believed that the right acquisitions are one way of accelerating the
diversification of the business. This is still very much part of Liontrust's
strategy but is, understandably, more challenging in the current environment.
Despite the headwinds that Liontrust has faced, we are well positioned to take
advantage of the opportunities to grow in the UK and internationally. We are
confident that the development and progress of the business, along with the
talent and hard work across the company, should soon begin to show more
tangible results.
Results
Gross Profit of £63.3 million (2024: £81.1 million), with a Revenue
Margin(1) of 0.56% (2024: 0.60%) on Average AuMA of £22,421 million (2024:
£26,862 million).
Adjusted profit before tax(1) is £15.7 million (2024: £25.8 million), with
an Adjusted Operating Margin(1) of 23.8% (2024: 30.5%).
Statutory Profit before tax of £7.3 million (2024: £12.5 million). This
includes charges of £8.4 million (2024: £13.3 million) relating to
non-recurring costs; the non-cash amortisation of the acquisition-related
intangible assets and goodwill.
Adjusted profit before tax(1) is disclosed in order 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.
(1) This is an Alternative Performance Measure, see note 2.
First Interim Dividend
In accordance with the Company's new Capital Allocation Policy as announced in
the 2025 Annual Report and Accounts, the Board is declaring a first Interim
dividend of 7.0 pence per share (2024: 22.0 pence).
The first interim dividend will be payable on 7 January 2026 to shareholders
who are on the register as at 28 November 2025, with the shares going
ex-dividend on 27 November 2025.
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 last day
for DRIP elections is 12 December 2025.
Assets under management and advice
On 30 September 2025, our AuMA stood at £22,010 million and were broken down
by type and investment process as follows:
Process Total Institutional Accounts Investment Trusts UK Retail Funds & MPS Alternative Funds International Funds
(£m) (£m) (£m) (£m) (£m) (£m)
Sustainable Investment 7,604 338 - 7,083 - 183
Economic Advantage 3,342 399 - 2,906 - 37
Multi-Asset 3,882 - - 3,697 64 121
Global Equities 1,164 - - 1,086 27 51
Global Innovation 957 - - 948 - 9
Cashflow Solution 3,273 568 - 2,093 224 388
Global Fundamental 1,788 209 1,162 417 - -
Total 22,010 1,514 1,162 18,230 315 789
AuMA as at 12 November 2025 were £22,008 million.
Flows
The net outflows over the Period were £2,324 million (2024: £2,067 million).
A reconciliation of fund flows and AuMA over the six-month period to 30
September 2025 is as follows:
Total Institutional Accounts Investment Trusts UK Retail Funds & MPS Alternative Funds International Funds
(£m) (£m) (£m) (£m) (£m) (£m)
Opening AuMA - 1 Apr 2025 22,590 1,416 1,126 19,129 342 577
Net flows (2,324) (3) (29) (2,400) (39) 147
Market & Investment performance 1,744 101 65 1,501 12 65
Closing AuMA - 30 Sep 2025 22,010 1,514 1,162 18,230 315 789
Luke Savage
Non-executive Chair
19 November 2025
Consolidated Statement of Comprehensive Income (unaudited)
Six months ended 30 September 2025
Six Six Year
months to months to ended
30-Sep-25 30-Sep-24 31-Mar-25
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Revenue 4 69,142 87,039 169,790
Cost of sales 4 (5,865) (5,973) (12,088)
Gross profit 63,277 81,066 157,702
Realised gain/(loss) on sale of financial assets 305 (6) 85
Unrealised (loss)/gain on financial assets (4) 174 58
Administration expenses 5 (56,964) (69,809) (137,633)
Operating profit 6,614 11,425 20,212
Interest receivable 677 1,121 2,162
Interest payable (22) (42) (82)
Profit before tax 7,269 12,504 22,292
Taxation charge 7 (2,571) (3,766) (5,596)
Profit for the period 4,698 8,738 16,696
Total comprehensive income 4,698 8,738 16,696
Pence Pence Pence
Basic earnings per share 8 7.49 13.67 26.20
Diluted earnings per share 8 7.49 13.67 26.20
All of the results are derived from continuing operations.
The accompanying notes form an integral part of these unaudited condensed
interim financial statements.
Consolidated Balance Sheet (unaudited)
As at 30 September 2025
30-Sep-25 30-Sep-24 31-Mar-25
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Assets
Non current assets
Intangible assets 9 34,814 43,919 39,367
Goodwill 10 32,110 32,110 32,110
Property, plant and equipment 1,678 2,809 2,241
Total non current assets 68,602 78,838 73,718
Current assets
Trade and other receivables 11 152,101 172,716 200,993
Corporation tax receivable 11 771 - -
Financial assets 12 2,088 5,752 3,866
Cash and cash equivalents 46,274 88,508 75,901
Total current assets 201,234 266,976 280,760
Liabilities
Non current liabilities
Deferred tax liability (7,808) (10,089) (8,946)
Lease liability (845) (1,517) (1,514)
Total non current liabilities (8,653) (11,606) (10,460)
Current liabilities
Trade and other payables (148,886) (181,282) (205,856)
Corporation tax payable (404) (4,468) -
Total current liabilities (149,290) (185,750) (205,856)
Net current assets 51,944 81,226 74,904
Net assets 111,893 148,458 138,162
Shareholders' equity
Ordinary shares 637 648 637
Capital redemption reserve 19 19 19
Retained earnings 124,609 160,763 150,445
Own shares held (13,372) (12,972) (12,939)
Total equity 111,893 148,458 138,162
Consolidated Cash Flow Statement (unaudited)
Six months ended 30 September 2025
Six Six Year
months to months to ended
30-Sep-25 30-Sep-24 31-Mar-25
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cash flows from operating activities
Profit after taxation 4,698 8,738 16,696
Adjustments for income statement non-cash charges/income:
Depreciation of PPE including ROU assets 591 997 1,648
Amortisation of intangible assets 4,553 4,553 9,555
Interest receivable (677) (1,121) (2,162)
Interest paid 669 998 2,162
Share based payment charges 1,046 1,091 1,871
Disposal of mLTIP* shares (197) (528) (606)
Tax expense 2,571 3,766 5,596
Foreign exchange (gains)/ losses (65) 67 -
Fair value gains on investments (305) (193) (58)
Adjustment for statement of financial position movements:
Decrease in trade and other receivables 47,672 56,871 29,534
Decrease in trade and other payables (57,750) (60,879) (35,209)
Cash generated from operations 2,806 14,360 29,027
Tax paid (2,600) - (8,400)
Net cash generated from operating activities 206 14,360 20,627
Investing Activities
Purchase of property, plant and equipment (23) (86) (592)
Purchase of financial assets (40) (599) (599)
Sale of financial assets 2,002 3,121 3,121
Purchase of seeding investments (19) (170) (783)
Sale of seeding investments 154 246 2,174
Net cash from investing activities 2,074 2,512 3,321
Financing Activities
Payment of lease liability (535) (726) (1,293)
Share buy-back - - (5,055)
Dividends paid (31,372) (31,956) (46,017)
Net cash used in financing activities (31,907) (32,682) (52,365)
Net decrease in cash and cash equivalents (29,627) (15,810) (28,417)
Opening cash and cash equivalents 75,901 104,318 104,318
Closing cash and cash equivalents 46,274 88,508 75,901
* mLTIP stands for members long term incentive plan.
Cash and cash equivalents consist only of cash balances.
Consolidated Statement of Changes in Equity (unaudited)
Six months ended 30 September 2025
Share Capital Retained Own shares Total
capital Redemption reserve earnings held Equity
£ '000 £ '000 £ '000 £ '000 £ '000
Balance at 1 April 2025 brought forward 637 19 150,445 (12,939) 138,162
Profit for the period - - 4,698 - 4,698
Total comprehensive income for the period - - 4,698 - 4,698
Dividends paid - - (31,372) - (31,372)
Purchase of own shares - - - (433) (433)
Equity share options issued - - 1,045 - 1,045
Sale of own shares - - (207) - (207)
Balance at 30 September 2025 637 19 124,609 (13,372) 111,893
Consolidated Statement of Changes in Equity (unaudited)
Six months ended 30 September 2024
Share Capital Retained Own shares Total
capital Redemption reserve 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 - - 8,738 - 8,738
Total comprehensive income for the Period - - 8,738 - 8,738
Dividends paid - - (31,956) - (31,956)
Purchase of own shares - - - (277) (277)
Equity share options issued - - 1,090 - 1,090
LTIP dividends settled through equity - - (42) - (42)
Sale of own shares - - (528) 199 (329)
Balance at 30 September 2024 648 19 160,763 (12,972) 148,458
Consolidated Statement of Changes in Equity (audited)
For the year ended 31 March 2025
Share Capital Retained Own shares Total
capital Redemption reserve earnings held Equity
£ '000 £ '000 £ '000 £ '000 £ '000
Balance at 1 April 2024 brought forward 648 19 183,461 (12,894) 171,234
Loss 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)
Sale of own shares - - 1,910 - 1,910
Members' share incentive award exercises - - (43) - (43)
Equity share options issued - - (563) 234 (329)
Balance at 31 March 2025 637 19 150,445 (12,939) 138,162
Notes to the Financial Statements
1 Principal accounting policies
a) Basis of preparation
The Group financial information for the six months ended 30 September 2025 has
been prepared in accordance with the Disclosure Guidance and Transparency
Rules of the Financial Conduct Authority and with IAS 34 Interim Financial
Reporting. The condensed interim financial statements should be read in
conjunction with the Group's annual financial statements for the year ended 31
March 2025, which were prepared in accordance with UK-adopted international
financial reporting standards (IFRS) and with the requirements of the
Companies Act as applicable to companies reporting under those standards.
The condensed financial statements do not comprise statutory accounts within
the meaning of section 434 of the Companies Act 2006. A copy of the statutory
accounts for that year has been delivered to the Registrar of Companies. The
auditors reported on those accounts: their report was unqualified, did not
draw attention to any matters by way of emphasis and did not contain a
statement undersection 498(2) or (3) of the Companies Act 2006.
The preparation of financial statements in conformity with IFRS requires the
Directors of the Company to make significant estimates and judgements that
affect the reported amounts of assets and liabilities, the disclosure of
contingencies at the reporting date, and the reported income and expenses
during the reporting periods. These estimates and judgements are periodically
evaluated and are based on historical experience and other relevant factors,
including expectations of future events that are believed to be reasonable.
Although these judgements and assumptions reflect the Directors' best
knowledge of current circumstances, actual results may differ from these
estimates.
The accounting policies and methods of computation applied in this financial
information are consistent with those applied in the annual financial
statements for the year ended 31 March 2025, and all accounting policies have
been consistently applied. While there are no significant judgements, the
Directors make a number of estimates, including those related to leases (see
note 1k in the financial statements for the year ended 31 March 2025) and
share-based payments (see note 1p the financial statements for the year ended
31 March 2025), neither of which are considered significant. In addition,
estimates are made to support the carrying value of goodwill and intangible
assets arising from acquisitions.
b) 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.
c) Accounting estimates and judgements
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 13 of the Financial
Statements to 31 March 2025).
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: AuMA growth and discount rate.
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 and discount rate. In the current period, there were no
impairment triggers for all CGUs (see notes 9 and 10 for further detail).
d) Regulatory capital position (unaudited)
Following the approval of the Group's Internal Capital and Risk Assessment
("ICARA") process in September 2025, the updated capital position for the
Group is shown below:
30-Sep-25 31-Mar-25
£m £m
Capital after regulatory deductions(1) 52.8 75.6
Regulatory capital requirement(2) 18.1 18.1
Surplus capital 34.7 57.5
Foreseeable dividends(3, 4) (4.4) (31.4)
Surplus capital after foreseeable dividends 30.3 26.1
(1) Group Capital minus own shares, intangibles and goodwill adjusted for
deferred tax liabilities.
(2) Group Capital requirement calculated per MiFIDPRU as part of the Internal
Capital and Risk Assessment (ICARA) process.
(3) For 30 September 2025, first interim dividend of 7.0. pence per share paid
in January following the half year end.
(4) For 31 March 2025, second interim dividend of 50.0 pence per share paid in
August 2025.
2 Alternative performance measures ("APMs")
ADJUSTED PROFIT BEFORE TAX
Definition: Profit before taxation, amortisation, impairment, and
non-recurring items (which include: 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
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 and distinguish management fee
revenues from performance related fees from other 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.
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 Board 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
Six Six Year
months to months to ended
30-Sep-25 30-Sep-24 31-Mar-25
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Revenue
- Management fee and other revenue 68,943 86,961 166,148
- Performance fee revenue 199 78 3,642
Total Revenue 69,142 87,039 169,790
Cost of sales (5,865) (5,973) (12,088)
Gross Profit 63,277 81,066 157,702
Gross Profit excluding Performance Fees 63,078 80,988 154,060
Average AuMA (£m) 22,421 26,860 25,671
Revenue Margin (%) 0.563% 0.603% 0.600%
Revenue from customers 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.
− Less contractual rebates paid to customers.
The 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 fund auditor fees.
− Sales commission paid or payable.
− 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 half year £0.2 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 it is sufficiently certain that
they become due and collectable and therefore the element (if any) deferred
beyond 30 September 2025 has not been recognised in the results for the
period.
5 Administration expenses
Six Six Year
months to months to ended
30-Sep-25 30-Sep-24 31-Mar-25
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Employee related expenses
Wages and salaries 9,161 11,271 26,178
Social security costs 1,363 1,556 3,616
Pension costs 939 1,134 2,191
Share incentivisation expense 799 892 1,860
DBVAP expense 709 940 1,855
Severance compensation 72 2,245 2,615
13,043 18,038 38,315
Member related expenses
Members' drawings charged as an expense 14,767 19,717 33,157
Members' share incentivisation expense 149 135 229
Members' severance - 142 141
14,916 19,994 33,527
Total Employee and Member related expenses 27,959 38,032 71,842
Non-staff related expenses
Professional and other services 3,791 6,393 13,663
Intangible asset amortisation 4,553 4,553 9,555
Depreciation 591 997 1,648
Other administration expenses 20,070 19,834 40,925
29,005 31,777 65,791
Total administration expenses 56,964 69,809 137,633
Analysis of staff costs is set out below:
Six Six Year
months to months to ended
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Direct Employment & Member related Wages, Salaries, Social Security &
Pensions
Fund Managers 15,693 20,362 40,397
Other Employees and Members 10,537 13,316 24,745
26,230 33,678 65,142
Incentivisation (Share & DBVAP) - Other Employees & Members 1,657 1,967 3,944
Employee and Member severance compensation 72 2,387 2,756
27,959 38,032 71,842
Analysis of Professional and other services is set out below:
Six Six Year
months to months to ended
30-Sep-25 30-Sep-24 31-Mar-25
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Professional and other services
Neptune/Architas/Majedie acquisition related costs(1) - 396 578
Business Transformation Programme(2) 3,346 5,457 12,174
International Distribution and Product expansion(3) 445 540 911
3,791 6,393 13,663
(1) Other acquisition related costs includes one-off cost of £396k in the
prior period relating to disposal of lease.
(2) Cost related to the implementation of the Business Transformation
Programme as set out above in the Chair's statement.
(3) Costs related to the broadening of our international distribution and
product 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:
Six Six Year
months to months to ended
30-Sep-25 30-Sep-24 31-Mar-25
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Profit before tax for the period 7,269 12,504 22,292
Severance compensation and staff reorganisation costs 72 2,387
2,756
Professional and other services(1) 3,791 6,393 13,663
Intangible asset amortisation 4,553 4,553 9,555
Adjustments 8,416 13,333 25,974
Adjusted profit before tax 15,685 25,837 48,266
Interest receivable (677) (1,121) (2,162)
Interest payable 22 42 -
Adjusted operating profit 15,030 24,758 46,104
Adjusted operating margin 23.8% 30.5% 29.2%
Adjusted diluted earnings per share (excluding performance fees) 18.68 30.28 55.56
Adjusted diluted earnings per share 18.74 30.31 56.81
(1) For further details see note 5 above.
7 Taxation
The half yearly tax charge has been calculated at the estimated full year
effective UK corporation tax rate of 25% (30 September 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 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 six months ended 30 September 2025 as shown in the table below. This is
reconciled to the actual weighted number of Ordinary Shares as follows:
30-Sep-25 30-Sep-24 31-Mar-25
Weighted average number of Ordinary Shares 62,732,860 63,907,475 63,717,195
Weighted average number of dilutive Ordinary shares under option:
- to Liontrust Long Term Incentive Plan 34,395 2,067 -
- to the Liontrust SAYE - 19,274 1,384
Adjusted weighted average number of Ordinary Shares 62,767,255 63,928,816 63,718,579
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:
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Investment management contracts acquired from ATI 1,800 3,000 2,400
Investment management contracts acquired from Neptune 12,498 15,622 14,060
Investment management contracts acquired from Architas 16,736 20,028 18,382
Investment management contracts acquired from Majedie 2,012 2,321 2,167
Segregated client contracts acquired from Majedie 1,768 2,948 2,358
34,814 43,919 39,367
The Group recognises five intangible assets relating to investment management
contracts and segregated clients arising on business acquisitions. An
assessment is made at each reporting date, on a standalone basis for each
intangible asset, as to whether there is any indication that an 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. With the exception of new
business AuMA and the terminal growth rate, the standalone intangible asset
models use the same assumptions as those in the goodwill impairment review
detailed in note 10.
The assessment made at 30 September 2025 did not indicate any indicators of
impairment in the value of the ATI, Neptune, Architas or Majedie intangible
assets based on the AuMA and flow of funds being in line with management
expectations (31 Mar 2025: no impairment for all CGUs but for Architas and
Majedie there were indicators of impairment due to higher than expected fund
outflows leading to forecast revenues being lower than originally forecast).
The impairment trigger was based on net outflows of 10% or greater than prior
reporting period AuMA.
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, there were no
indicators of impairment therefore the next assessment will be performed at
year ended 31 March 2026. The impairment trigger was based on net outflows of
10% or greater than prior reporting period AuMA.
30 Sept 2025 30 Sept 2024 31 Mar 2025
£'000 £'000 £'000
ATI 11,873 11,873 11,873
Neptune 7,668 7,668 7,668
Architas 7,951 7,951 7,951
Majedie 4,618 4,618 4,618
Total 32,110 32,110 32,110
For all four CGUs at year ended 31 March 2025, 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. 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.
Discount Rate Terminal Growth Rate Net AuMA
31 Mar 2025
31 Mar 2025
Growth Rate
31 Mar 2025
ATI 12.50% 2% 4.0%
Neptune 12.50% 2% 6.7%
Architas 12.50% 2% 2.7%
Majedie 12.50% 2% 7.1%
11 Trade and other receivables
30-Sep-25 30-Sep-24 31-Mar-25
£'000 £'000 £'000
Trade receivables
- Fees receivable 12,641 14,854 13,451
- Unit Trust sales and cancellations 128,576 147,571 177,965
Prepayments and accrued income 10,884 10,291 8,359
Corporation tax receivable 771 - 1,218
152,872 172,716 200,993
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
By virtue of the investment management agreements in place between the Group
and the investment vehicles it manages, such funds may be considered to be
related parties of the Group. 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.
During the six months to 30 September 2025 the Group received fees from unit
trusts and ICVCs under management of £60,382,000 (2024: £76,834,000).
Transactions with these funds comprised creations of £4,925,700,000 (2024:
£5,602,230,000) and liquidations of £3,450,050,000 (2024: £3,357,784,000).
As at 30 September 2025 the Group owed the unit trusts £126,847,000 (2024:
£147,579,000) in respect of unit trust creations and was owed £139,026,000
(2024: £160,781,000) in respect of unit trust cancellations and fees.
During the six months to 30 September 2025 the Group received fees from
offshore funds under management of £7,810,000 (2024: £8,287,000).
Transactions with these funds comprised purchases of £nil (2024: £nil) and
sales of £nil (2024: £nil). As at 30 September 2025 the Group was owed
£849,000 (2024: £55,000) in respect of management fees.
14 Post balance sheet date events
There were no post balance sheet events.
15 Key risks
The Directors have assessed the risks and uncertainties affecting the Group's
business during the first half of the year and confirm that these were
consistent with those identified in the 2025 Annual Report. Furthermore, the
Directors believe that the principal risks and uncertainties for the second
half of the year will remain substantially the same as those previously
disclosed.
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 monitor all risks to the business, they record how each risk is
mitigated and have warning flags to identify increased risk levels. Management
recognise 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
2025 Annual Report and Note 2 "Financial risk management" on page 150 of the
2025 Annual Report.
16 Directors' responsibilities
The Directors confirm that this condensed set of interim financial statements
has been prepared in accordance with UK-adopted IAS 34 'Interim Financial
Reporting', and that the Half Year Report herein includes a true and fair
review of the information required by DTR 4.2.7R, being an indication of
important events that have occurred during the first six months of the current
financial year and their impact on the condensed set of financial statements;
and a description of the principal risks and uncertainties for the remaining
six months of the year; and DTR 4.2.8R, being related party transactions that
have taken place in the first six months of the current financial year and
that have materially affected the financial position or performance of the
Group during that period; and any changes in the related party transactions
described in the last Annual Report and Accounts that could have a material
effect on the financial position or performance of the Group in the past six
months of the current financial year.
By Order of the Board
John S. Ions Vinay K. Abrol
Chief Executive Officer Chief Financial Officer
19 November 2025
Forward Looking Statements
This Half 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 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
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
(https://eur03.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.shareview.co.uk%2F&data=05%7C01%7CTony.Morrison%40liontrust.co.uk%7C684298d6278541abaa0308db70bbb16c%7C4e6acae25b334cf78f09842c7aba2f0f%7C0%7C0%7C638227723653350034%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=JUCRMg%2F7gXu3tpBCyQDwSmgkgBTCVj7OVQHN3vc10zw%3D&reserved=0)
. Telephone lines are open between 08:30 - 17:30, Monday to Friday excluding
public holidays in England and Wales.
END
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