REG - Liontrust Asset Mgmt - Half-year Report for 6 months to 30 September 2023
16/11/2023 07:00
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RNS Number : 6098T Liontrust Asset Management PLC 16 November 2023
LEI: 549300XVXU6S7PLCL855
Embargoed until 0700 hours, Thursday 16 November 2023
LIONTRUST ASSET MANAGEMENT PLC
HALF YEAR REPORT FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2023
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 2023.
Results:
· Gross Profit of £98.6 million (2022: £108.8 million), a decrease of
9% when compared to the same period last year. Gross Profit excluding
Performance Fees(1) of £92.5 million (2022: £108.8 million), a decrease of
15% when compared to the same period last year.
· £6.0 million of performance fee revenues (2022: £nil).
· Adjusted profit before tax(1) of £36.0 million (2022: £42.9
million), a decrease of 16% when compared to the same period last year.
· Adjusted diluted earnings per share(1) of 42.32 pence per share
(2022: 53.87 pence per share), a decrease of 21% when compared to the same
period last year.
· Statutory loss before tax of £10.1 million (2022: profit £14.1
million). This includes charges of £46.2 million (2022: £28.8 million)
relating to acquisitions and associated restructuring costs (£8.1 million);
the non-cash amortisation and impairment of the related intangible assets and
goodwill (amortisation: £7.0 million, impairment: £29.9 million); and other
non-cash and non-recurring costs (£1.1 million). See note 6 below for further
detail and a reconciliation to Adjusted profit before tax.
Dividend:
· First Interim dividend per share of 22.0 pence (2022: 22.0 pence).
Assets under management and advice:
· On 30 September 2023, assets under management and advice
("AuMA") were £27.7 billion, a decrease of 12% over for the six months
ended 30 September 2023.
· AuMA as at 9 November 2023 were £26.6 billion.
Flows:
· Net outflows of £3.2 billion in the six months ended 30 September
2023 (2022: £2.2 billion outflows).
(1) This is an Alternative Performance Measure, see note 2 below.
Commenting, John Ions, Chief Executive, said:
"This has been a challenging period for the asset management sector, including
Liontrust. This is shown by the fact that the industry experienced net retail
outflows in the UK in September of £1.4 billion, according to the Investment
Association ("IA"), and asset managers only required net retail sales of £7.4
million in the UK in the 3(rd) quarter of 2023 to make it into the top 10 list
of sellers (Source: The Pridham Report).
It is in this context that we need to view Liontrust's net outflows and the
impairment of recent acquisitions. The majority of Liontrust's assets are
invested in UK equities, which is an asset class that continues to be out of
favour with investors. UK All Companies was the worst selling sector for net
retail sales yet again in September 2023 (with net retail outflows of £884
million), which has been the case for 10 out of the past 11 months.
The impairment of recent acquisitions, which does not affect our net cash,
reflects the sentiment towards UK equities, especially among institutional
investors, which has negatively impacted the funds and mandates we inherited
from the acquisition of Majedie Asset Management.
Liontrust has partly grown through acquisitions and they have made it a better
business by broadening the pool of talent, and enhancing product development
and the infrastructure of the business, including client service.
Our focus is clear and we are committed to navigating the current headwinds
and emerging with the business stronger than ever. There are a number of areas
we are prioritising to achieve our strategic objectives.
We are seeking to further broaden our investment talent and product offering,
which follows an optimisation of the current fund range. We have closed and
merged a number of funds, launched the GF Sustainable Future US Growth Fund
and will offer an Irish-domiciled version of the European Dynamic Fund in the
first quarter of 2024.
Both fund launches are in response to client demand; the European Dynamic Fund
is the best performer in its IA sector over the last five years and is in the
1(st) quartile over one and three years and since launch (Source: Financial
Express, as at 31.10.23, total return, bid-to-bid, net of fees, income
reinvested, share class I). There is also increasing interest from Europe in
the Cashflow Solution team's long/short European Strategic Equity Fund that
has delivered 81.1% over the past three years (Source: Financial Express, as
at 31.10.23, total return, net of fees, income reinvested, share class C3).
A key part of our strategy is to broaden distribution internationally. This
requires not only having the appropriate infrastructure but also the product
range to meet demand, which will benefit from further diversification of asset
classes. One area of strong demand in Europe is for SFDR Article 9 funds.
Given all our Irish-domiciled Sustainable Future funds are in this category,
this positions them well for the future.
All four UK-domiciled Economic Advantage funds are in the 1(st) quartile of
their respective IA sectors since launch or since the team started managing
them but have been facing the headwind of falling demand (Source: Financial
Express). However, this negative sentiment does present opportunities to
investors in the form of attractive valuations. The Economic Advantage team
argues that the UK market as a whole represents a 32% discount to intrinsic
value and this rises to 49% for small caps (Source: Liontrust, Canaccord
Genuity Quest, 06.09.23.).
In the current environment, it is more important than ever that our investment
teams explain the drivers of performance and how their portfolios are
positioned for the future. We have interacted extensively with our client base
over the autumn, including through a series of Liontrust and partner events.
This is in conjunction with the strong engagement our communications continue
to generate, including more than 1.7 million views of our fund manager videos
from the start of 2023 to November.
To support the investment and distribution teams we have been reviewing our
operating model and are investing in the operational infrastructure of the
business. We want to ensure Liontrust has an efficient and scalable platform
to support the growth of the Group going forward.
While we continue to invest in selected areas of the Group for future growth,
we are also concentrating on managing costs and driving efficiencies across
the business. This is to ensure we have a lean, efficient and focused
operation, underpinned by a resilient balance sheet, both now and for the
future.
All of these developments and initiatives are building on the strong
foundations that we already have through the investment teams, brand,
distribution and business processes. They give me great confidence we will
emerge stronger from the current environment."
For further information please contact:
Teneo (Tel: 020 7353 4200, Email: liontrust@teneo.com)
Tom Murray, Colette Cahill
Liontrust Asset Management Plc (Tel: 020 7412 1700, Website: liontrust.co.uk)
John Ions: Chief Executive
Vinay Abrol: Chief Financial Officer & Chief Operating Officer
Simon Hildrey: Chief Marketing Officer
David Boyle: Head of Corporate Development
Singer Capital Markets (Tel: 020 7496 3000)
Corporate Broking: Charles Leigh-Pemberton
Corporate Finance: Justin McKeegan
Panmure Gordon (Tel: 020 7886 2500)
Corporate Broking: David Watkins
Corporate Advisory: Atholl Tweedie
HSBC Bank plc (Tel: 020 7991 8888)
Corporate Broking: Sam McLennan, James Hopton
Corporate Advisory: Alexander Paul
Chair's Statement
No company enjoys linear growth over many years. There will inevitably be
bumps, twists and turns along the way. While Liontrust has been going through
a less comfortable part of the journey after delivering many years of rapid
growth, the Group has a robust strategy and a clear plan for how management
intends to deliver it.
We understand the reasons for the net outflows of £3.2 billion over the first
half of the financial year. Key drivers are Liontrust's bias towards quality
growth investing and small and mid caps, along with a significant proportion
of our AuMA being invested in the UK stock market, which have all been
negatively impacted by investor sentiment. In the first nine months of 2023,
for example, UK All Companies was the worst selling IA sector in eight of
those months.
The question we often get asked by investors is when will this sentiment
change, which is especially significant now as our fund managers are telling
us that the share prices of the companies they hold in their portfolios are at
historically low levels. There is usually never a simple catalyst, other than
time. We believe in the teams' investment processes and their ability to
deliver for investors over the long term - this unwavering focus on process
has historically rewarded our investors.
Liontrust is not waiting passively for the cycle to change, however. The Group
is focused on broadening the fund range and investment teams, expanding the
asset classes and investment styles managed by Liontrust, increasing global
distribution, enhancing further the investor experience and strengthening the
operating model and infrastructure.
It was in pursuing this strategy that we made the decision to seek to acquire
GAM. Having carefully considered the proposed acquisition, we decided it was
the right deal to accelerate our stated strategy, especially in broadening our
fund range and global distribution and enhancing our business infrastructure.
The Board is pleased that Liontrust attempted to acquire GAM and then remained
resolute in sticking to a price that we believe was fair for the value of the
business, recognising the costs it would have entailed. This is a better
outcome than completing a deal for the wrong price for Liontrust.
Liontrust has announced costs related to the impairment of the related
intangible assets and goodwill on past acquisitions. These costs do not impact
the Group's cash position and Liontrust continues to be in a strong financial
position, supported by its robust balance sheet. This is shown by the fact
that Liontrust's first interim dividend has been maintained at 22.0p, the same
as we announced at the Half Year Results in 2022.
The strategy of Liontrust has not changed. Our management and staff are
working hard to continue to pursue this strategy including the expansion of
investment teams and distribution, enhancing the investor experience and
improving the efficiency of the operating model.
We have always considered it vital to put our investors first and our rigorous
investment processes have been a key part of delivering the outcomes expected
by investors. We seek to provide value for money, exceptional service and
support, be as transparent as possible, and communicate clearly and
frequently. Consumer Duty is therefore welcome and prompts us all to ensure we
are delivering the best outcomes possible.
Through continual development of the business and our offering to investors,
we believe Liontrust will become an even stronger Group.
Results
Adjusted profit before tax(2) is £36.035 million (2022: £42.867 million), a
decrease of 16% compared to last year. Adjusted profit before tax(2) is
disclosed in order to give shareholders an indication of the profitability of
the Group excluding non-cash (intangible asset amortisation and impairment)
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(2).
(2) This is an Alternative Performance Measure, see note 2 below.
Dividend
In accordance with the Company's longstanding progressive dividend policy,
which remains unchanged, the Board is declaring a first Interim dividend of
22.0 pence per share (2022: 22.0 pence) which will be payable on 5 January
2024 to shareholders who are on the register as at 24 November 2023, the
shares going ex-dividend on 23 November 2023. Last day for Dividend
Reinvestment Plan elections is 12 December 2023.
Looking forward
While the asset management industry is facing a number of headwinds and
Liontrust has been through a challenging period for net outflows, the Board is
optimistic about the outlook for the Group. This is based on the strategy for
the business and the excellence of the investment teams, their processes, the
brand, client relationships and financial strength of the Group.
Assets under management and advice
On 30 September 2023, our AuMA stood at £27,650 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 9,985 269 - 9,221 - 495
Economic Advantage 7,181 440 - 6,553 - 188
Multi-Asset 4,466 - - 4,310 156 -
Global Innovation 642 - - 642 - -
Cashflow Solution 1,620 542 - 936 136 6
Global Fundamental 3,518 681 1,122 1,675 - 40
Global Fixed Income 238 - - 56 - 182
Total 27,650 1,932 1,122 23,393 292 911
AuMA as at 9 November 2023 were £26,576 million.
Flows
The net outflows over the six-month period to 30 September 2023 were £3,213
million (2022: £2,187 million). A reconciliation of fund flows and AuMA over
the six-month period to 30 September 2023 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 2023 31,430 2,394 1,139 25,721 1,084 1,092
Net flows (3,213) (524) (33) (1,760) (748) (148)
Market and Investment performance (567) 62 16 (568) (44) (33)
Closing AuMA - 30 September 2023 27,650 1,932 1,122 23,393 292 911
UK Retail Fund Performance (Quartile ranking)
Quartile ranking - Since Launch/Manager Appointed Quartile ranking - 5 year Quartile ranking - 3 year Quartile ranking - 1 year Launch Date/ Manager Appointed
Economic Advantage funds
Liontrust UK Growth Fund 1 1 2 3 25/03/2009
Liontrust Special Situations Fund 1 2 3 4 10/11/2005
Liontrust UK Smaller Companies Fund 1 1 3 4 08/01/1998
Liontrust UK Micro Cap Fund 1 1 1 2 09/03/2016
Sustainable Future funds
Liontrust SF Monthly Income Bond Fund 1 2 2 1 12/07/2010
Liontrust SF Managed Growth Fund 2 1 4 3 19/02/2001
Liontrust SF Corporate Bond Fund 1 3 3 1 20/08/2012
Liontrust SF Cautious Managed Fund 2 3 4 4 23/07/2014
Liontrust SF Defensive Managed Fund 1 3 4 4 23/07/2014
Liontrust SF European Growth Fund 3 4 4 4 19/02/2001
Liontrust SF Global Growth Fund 3 2 4 4 19/02/2001
Liontrust SF Managed Fund 2 1 4 3 19/02/2001
Liontrust UK Ethical Fund 3 4 4 4 01/12/2000
Liontrust SF UK Growth Fund 3 4 4 4 19/02/2001
Global Innovation funds
Liontrust Global Dividend Fund 2 1 3 2 20/12/2012
Liontrust Global Innovation Fund 1 4 4 3 31/12/2001
Liontrust Global Technology Fund 3 2 2 2 15/12/2015
Global Fundamental Global Equity funds
Liontrust Balanced Fund 1 1 3 2 31/12/1998
Liontrust China Fund 4 3 3 2 31/12/2004
Liontrust Emerging Market Fund 3 4 3 4 30/09/2008
Liontrust Global Smaller Companies Fund 1 3 4 3 01/07/2016
Liontrust Global Alpha Fund 1 1 4 2 31/12/2001
Liontrust India Fund 4 3 1 2 29/12/2006
Liontrust Japan Equity Fund 2 1 1 3 22/06/2015
Liontrust Latin America Fund 3 4 4 4 03/12/2007
Cashflow Solution funds
Liontrust European Dynamic Fund 1 1 1 1 15/11/2006
Global Fixed Income funds
Liontrust Strategic Bond Fund 3 3 3 3 08/05/2018
Global Fundamental funds
Liontrust UK Equity Fund 1 3 2 1 27/03/2003
Liontrust UK Focus Fund 1 3 3 1 29/09/2003
Liontrust Income Fund 1 1 3 2 31/12/2002
Liontrust UK Equity Income Fund 2 4 3 1 19/12/2011
Liontrust US Opportunities Fund 2 3 4 4 31/12/2002
Edinburgh Investment Trust Plc 1 - 1 1 27/03/2020
Liontrust Global Equity Fund 2 1 2 2 30/06/2014
Liontrust Global Focus Fund 2 2 2 2 30/06/2014
Liontrust GF US Equity Fund 3 1 2 1 26/06/2014
Liontrust GF UK Equity Fund 3 3 2 1 03/03/2014
Liontrust GF International Equity Fund 4 - 4 4 17/12/2019
Source: Financial Express to 30 September 2023 as at 4 October 2023, bid-bid,
total return, net of fees, based on primary share classes. Past performance is
not a guide to future performance, investments can result in total loss of
capital. The above funds are all UK authorised unit trusts, OEICs, Irish
authorised OEICs (primary share class) or UK listed investment trusts.
Liontrust Russia Fund is not included as it is currently suspended and in an
IA sector that is not rankable (e.g., Specialist) so it would not be a fair
comparison to make. The onshore and offshore Tortoise funds are not included
as they are not in IA sectors. Edinburgh Investment Trust Plc uses the IT UK
Equity Income sector.
Alastair Barbour
Non-executive Chair
15 November 2023
Consolidated Statement of Comprehensive Income
Six months ended 30 September 2023
Six Six Year
months to months to ended
30-Sep-23 30-Sep-22 31-Mar-23
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Revenue 4 104,547 116,785 243,339
Cost of sales 4 (5,979) (7,984) (13,569)
Gross profit 98,568 108,801 229,770
Realised profit on sale of financial assets 12 - -
Gain on write back of Majedie acquisition provision - - 1,848
Unrealised (loss)/gain on financial assets (132) 465 618
Administration expenses 5 (109,164) (95,204) (183,210)
Operating (loss)/profit (10,716) 14,062 49,026
Interest receivable 642 45 358
Interest payable (52) (41) (83)
(Loss)/Profit before tax (10,126) 14,066 49,301
Taxation credit/(charge) 7 796 (1,290) (9,973)
(Loss)/Profit for the period (9,330) 12,776 39,328
Other comprehensive income - - -
Total comprehensive income (9,330) 12,776 39,328
Pence Pence Pence
Basic earnings per share 8 (14.61) 19.93 61.45
Diluted earnings per share 8 (14.61) 19.82 61.21
Consolidated Balance Sheet
As at 30 September 2023
30-Sep-23 30-Sep-22 31-Mar-23
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Assets
Non current assets
Intangible assets 10 58,233 97,648 90,629
Goodwill 11 34,052 38,584 38,586
Property, plant and equipment 2,600 5,115 3,378
94,885 141,347 132,593
Current assets
Trade and other receivables 12 194,665 218,612 241,682
Financial assets 13 9,710 8,461 9,921
Cash and cash equivalents 96,932 109,012 121,037
Total current assets 301,307 336,085 372,640
Liabilities
Non current liabilities
Deferred tax liability (13,393) (21,425) (21,493)
Lease liability (1,684) (4,269) (2,168)
Total non current liabilities (15,077) (25,694) (23,661)
Current liabilities
Trade and other payables (199,884) (232,702) (255,460)
Corporation tax payable (1,208) (9,508) (5,131)
Total current liabilities (201,092) (242,210) (260,591)
Net current assets 100,215 93,875 112,049
Net assets 180,023 209,528 220,981
Shareholders' equity
Ordinary shares 648 647 648
Share premium - 112,510 112,510
Capital redemption reserve 19 19 19
Retained Earnings 190,685 107,907 121,341
Own shares held (11,329) (11,555) (13,537)
Total equity 180,023 209,528 220,981
Consolidated Cash Flow Statement
Six months ended 30 September 2023
Six Six Year
months to months to ended
30-Sep-23 30-Sep-22 31-Mar-23
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cash flows from operating activities
Cash inflow from operations 102,302 109,827 236,362
Cash outflow from operations (82,626) (91,314) (174,437)
Cash outflow from changes in unit trust receivables and payables (401) (1,659) (1,387)
Net cash generated from operations 19,275 16,854 60,538
Interest received 642 45 358
Tax paid (11,143) (2,616) (17,479)
Net cash from operating activities 8,774 14,283 43,417
Cash flows from investing activities
Purchase of property, plant and equipment (23) (135) (253)
Acquisition of Majedie net of cash acquired - 13,598 13,596
Gain on liquidation of Architas - - 827
Purchase of financial assets - (2,701) (2,701)
Sale of financial assets - - -
Purchase of seeding investments (30) (88) (2,193)
sale of seeding investments 16 270 1,990
Net cash (used in)/from investing activities (37) 10,944 11,266
Cash flows from financing activities
Payment of lease liabilities (744) (817) (1,328)
Purchase of own shares - (4,250) (7,100)
Sale of own shares - - -
Issue of shares - - -
Dividends paid (32,098) (32,000) (46,070)
Net cash used in financing activities (32,842) (37,067) (54,498)
Net (decrease)/increase in cash and cash equivalents (24,105) (11,840) 185
Opening cash and cash equivalents 121,037 120,852 120,852
Closing cash and cash equivalents 96,932 109,012 121,037
Consolidated Statement of Change in Equity (unaudited)
Six months ended 30 September 2023
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
Profit for the period - - - (9,330) - (9,330)
Total comprehensive income for the period - - - (9,330) - (9,330)
Dividends paid - - - (32,098) - (32,098)
Shares issued - - - - - -
Cancellation of share premium account - (112,510) - 112,510 - -
Purchase of own shares - - - - - -
Equity share options issued - - - 959 - 959
Sale of own shares - - - (2,697) 2,208 (489)
Balance at 30 September 2023 648 - 19 190,685 (11,329) 180,023
Consolidated Statement of Change in Equity (unaudited)
Six months ended 30 September 2022
Share Share Capital Retained Own shares Total
capital premium redemption earnings held Equity
£ '000 £ '000 £ '000 £ '000 £ '000 £ '000
Balance at 1 April 2022 brought forward 612 64,370 19 128,859 (9,692) 184,168
Profit for the period - - - 12,776 - 12,776
Total comprehensive income for the period - - - 12,776 - 12,776
Dividends paid - - - (32,000) - (32,000)
Shares issued 35 48,140 - - - 48,175
Purchase of own shares - - - - (4,250) (4,250)
Equity share options issued - - - 964 - 964
LTIP dividends settled through equity - - - (305) - (305)
Sale of own shares - - - (2,387) 2,387 -
Balance at 30 September 2022 647 112,510 19 107,907 (11,555) 209,528
Consolidated Statement of Change in Equity (audited)
Year ended 31 March 2023
Ordinary Share Capital Retained Own shares Total
shares premium redemption earnings held Equity
£ '000 £ '000 £ '000 £ '000 £ '000 £ '000
Balance at 1 April 2022 brought forward 612 64,370 19 128,859 (9,692) 184,168
Profit for the year - - - 39,328 - 39,328
Total comprehensive income for the year - - - 39,328 - 39,328
Dividends paid - - - (46,070) - (46,070)
Shares issued 36 48,140 - - - 48,176
Purchase of own shares - - - - (7,100) (7,100)
Sale of own shares - - - (2,692) 3,255 563
Equity share options issued - - - 1,916 - 1,916
Balance at 31 March 2023 648 112,510 19 121,341 (13,537) 220,981
Notes to the Financial Statements
1 Principal accounting policies
a) Basis of preparation
The Group financial information for the six months ended 30 September 2023 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 2023, 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. The financial
information for the half years ended 30 September 2023 and 2022 has not been
audited by the auditors pursuant to the Auditing Practices Board guidance on
Review of Interim Financial Information. KPMG reported on the 31 March 2023
financial statements, and their report was unmodified and did not contain a
statement under Section 498(2) or (3) of the Companies Act 2006 in the UK.
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 and disclosure of
contingencies at the date of the financial information and the reported income
and expense during the reporting periods. Although these judgements and
assumptions are based on the Directors' best knowledge of the amount, events
or actions, actual results may differ from these estimates. The accounting
policies set out below have been used to prepare the financial information.
All accounting policies have been consistently applied.
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
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 2023) and share based payments (see note 1p in the
financial statements for the year ended 31 March 2023), 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 2023).
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.
d) Regulatory capital position
Following the approval of the Group's Internal Capital and Risk Assessment
("ICARA") process in September 2023, the updated capital position for the
Group is shown below:
30-Sep-23 31-Mar-23 31-Mar-22
£m £m £m
(re-presented) (re-presented)
Capital after regulatory deductions(1) 101.1 113.3 98.0
Regulatory capital requirement(2) 23.6 26.8 39.6
Surplus capital 77.5 86.5 58.4
Foreseeable dividends(3, 4) (14.1) (32.5) (32.0)
Surplus capital after foreseeable dividends 63.4 54.0 26.4
Note, the capital position for the Group as at 30 September 2023 (unaudited)
includes the impairment of the intangible assets and goodwill.
(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 2023, first interim dividend of 22.0 pence per share paid
in January following the half year end
(4) For 31 March 2023 and 31 March 2022, second interim dividend of 50.0 pence
per share paid in August following financial year end
The ICARA process included a review of the capital calculation shown above.
The Group had previously not adjusted the intangibles for related deferred tax
liabilities as part of the capital calculation believing it was more prudent
not to do so, however the review suggested it was market practice to deduct
them and so we have now done so. The figures for financial year ended 31 March
2022 ("FY22") have been similarly adjusted to give correct comparable for FY22
The table above shows the represented information.
2 Adjusted performance measures ("APMs")
ADJUSTED PROFIT BEFORE TAX
Definition: Profit before taxation, amortisation, impairment, and
non-recurring items (which include: professional fees relating to
acquisitions; restructuring and severance compensation related costs).
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 and their
integration into the Group. 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 interest and amortisation, impairment and
non-recurring items (which include: professional fees relating to
acquisitions; restructuring and severance compensation related costs).
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
financing and capital investment, which eases the comparison with the Group's
competitors who may use different accounting policies and financing methods.
Specifically, calculation of Adjusted operating profit before tax excludes
amortisation and impairment expenses, and costs associated with acquisitions
and their integration into the Group. It provides shareholders, potential
shareholders and financial analysts a consistent year on year basis of
comparison of a "operating profit", when comparing the current year to the
previous year and also when comparing multiple historical years to the current
year, of how the underlying business is performing.
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 profits, identifying the operating
gearing within the business.
GROSS PROFIT EXCLUDING PERFORMANCE FEES
Definition: Gross Profit less any revenue attributable to Performance 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.
ADJUSTED DILUTED EARNINGS PER SHARE (EXCLUDING PERFORMANCE FEES)
Definition: Adjusted profit before tax minus (performance fees revenues
multiplied by the Adjusted Operating Margin) divided by the weighted average
number of shares in issue.
Reconciliation: Note 6.
Reason for use: This is used to present a measure of profitability per share
excluding performance fee revenues in line with the adjusted profit as
detailed above.
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 FEES
Definition: Revenue attributable to performance related fees.
Reconciliation: Note 4.
Reason for use: This is used to identify distinguish revenues from performance
related fees
from other revenues.
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
Six Six Year
months to months to ended
30-Sep-23 30-Sep-22 31-Mar-23
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Revenue
- Revenue 98,505 116,785 224,855
- Performance fee revenue(1) 6,042 - 18,484
Total Revenue 104,547 116,785 243,339
Cost of sales (5,979) (7,984) (13,569)
Gross Profit 98,568 108,801 229,770
(1) September 2023 performance fees generated on redemptions from the Tortoise
funds.
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.
5 Administration expenses
Six Six Year
months to months to ended
30-Sep-23 30-Sep-22 31-Mar-23
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Employee related expenses
Wages and salaries 13,257 13,541 30,178
Social security costs 1,704 1,912 4,105
Pension costs 1,277 1,176 2,388
Share incentivisation expense 1,194 1,304 2,354
DBVAP expense 1,310 1,263 2,777
Severance compensation 1,092 3,522 3,995
19,834 22,718 45,797
Non-employee related expenses
Members' drawings charged as an expense 20,862 24,549 59,507
Members' share incentivisation expense 235 228 1,225
Members' severance - 35
-
Professional services(1) 8,139 4,654 8,026
Depreciation 1,257 970 3,884
Intangible asset amortisation 7,018 9,640 14,792
Intangible asset and Goodwill impairment 29,912 10,950 12,816
Other administration expenses 21,907 21,460 37,163
Total administration expenses 109,164 95,204 183,210
(1) Includes acquisition related and restructuring costs for Majedie/GAM.
Note, although a proportion of the projected costs associated with the
proposed acquisition of GAM were negotiated on a contingent basis, there is a
one-off exceptional charge of not more than £11 million of which
approximately £2 million was incurred in the financial year ended 31 March
2023 and £8 million was incurred in the 6 months ended 30 September 2023,
with further costs expected in the second half of the current financial
year. These fees and costs relate primarily to Corporate Finance, Target
Operating Model design, Class 1 Circular and Swiss Offer documents and Legal.
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-23 30-Sep-22 31-Mar-23
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
(Loss)/profit before tax for the period (10,126) 14,066 49,301
Severance compensation and staff reorganisation costs 1,092
3,557 2,148
Professional services(1) 8,139 4,654 8,026
Intangible asset amortisation 7,018 9,640 14,792
Intangible asset and Goodwill impairment 29,912 10,950 12,816
Adjustments 46,161 28,801 37,782
Adjusted profit before tax 36,035 42,867 87,083
Interest receivable (642) (45) (358)
Interest payable - - -
Adjusted operating profit 35,393 42,822 86,725
Adjusted operating margin 35.9% 39.4% 37.7%
Adjusted diluted earnings per share (excluding performance fees) 39.77 53.87 100.98
Adjusted diluted earnings per share 42.32 53.87 109.78
(1) Includes acquisition related and restructuring costs for Majedie/GAM.
7 Taxation
The half yearly tax charge has been calculated at the estimated full year
effective UK corporation tax rate of 25% (30 September 2022: 19%).
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 2023 as shown in the table below. This is
reconciled to the actual weighted number of Ordinary Shares as follows:
30-Sep-23 30-Sep-22 31-Mar-23
Weighted average number of Ordinary Shares 63,846,985 64,099,257 63,998,999
Weighted average number of dilutive Ordinary shares under option:
- to Liontrust Long Term Incentive Plan 17,032 352,420 247,003
- to the Liontrust CSOP 2,500 4,559
-
Adjusted weighted average number of Ordinary Shares 63,864,017 64,454,177 64,250,561
9 Neptune deferred consideration
On 1 October 2019 ("Completion Date") the Company acquired the entire issued
share capital of Neptune Investment Management Limited. The Share Purchase
Agreement in relation to the acquisition provided that an earnout of 661,813
Liontrust Shares ("Tranche Two Consideration Shares") was payable if the AuMA
managed by the acquired team exceeded £4bn on the 3rd anniversary of the
Completion Date. The seller could extend this term if the MSCI World Index
fell by 10% or more in the preceding 12 months prior to the 3rd anniversary of
the completion date. As at 1 October 2022 the MSCI World Index had fallen by
more than 10% and therefore the earnout provision was retested at 1 October
2023. At 1 October 2023 the AuMA of the acquired team did not meet the
threshold and the Tranche Two Consideration was not payable.
10 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-23 30-Sep-22 31-Mar-23
£'000 £'000 £'000
Investment management contracts acquired from ATI 4,200 5,400 4,800
Investment management contracts acquired from Neptune 18,168 21,196 19,682
Investment management contracts acquired from Architas 23,320 34,955 32,793
Investment management contracts acquired from Majedie 6,652 20,087 20,546
Segregated client contracts acquired from Majedie 5,893 16,010 12,808
58,233 97,648 90,629
Impairment of intangible assets
ATI
There were no indicators of impairment for ATI intangible asset as at 30
September 2023 based on the AuM and flow of funds being in line with
management expectations.
Neptune
There were no indicators of impairment for Neptune intangible asset as at 30
September 2023 based on the AuM and flow of funds being in line with
management expectations.
Architas
Indicators of impairment were identified for the Architas investment
management contract intangible due to higher than expected fund outflows and
negative market returns leading to forecast revenues being lower than
originally forecast. The value of the intangible assets have therefore been
retested as at 30 September 2023 which has resulted in an impairment of the
Architas investment management contract intangible of £7.311 million.
Majedie
Indicators of impairment were identified for the Majedie investment management
contracts and segregated clients intangible assets as at 30 September 2023 due
to the current macroeconomic and geopolitical climate and its resultant impact
on outflows. The value of the intangible assets have therefore been retested
as at 30 September 2023 which has resulted in an impairment of the Majedie
investment management contract intangible of £12.753 million and Majedie
Segregated Clients intangible of £5.314 million.
Intangible assets impaired in the period:
Architas Majedie Total
Funds Segregated
£'000 £'000 £'000 £'000
Intangible asset at 1 April 2023 32,793 20,546 12,808 66,147
Amortisation (2,162) (1,141) (1,601) (4,904)
Impairment loss (7,311) (12,753) (5,314) (25,378)
Intangible asset at 30 September 2023 23,320 6,652 5,893 35,865
Discount rate 13.80% 13.80% 13.80%
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.
11 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. The ATI Goodwill on acquisition is
allocated to the Sustainable Funds team CGU and at 30 September 2023 was
£11,873,000 (31 March 2023: £11,873,000). 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 the discount rate (13.8%, 31 March 2023: 13.8%), terminal growth rate (2%,
31 March 2023: 2%) and net AuMA growth (0.9%, 31 March 2023: 7%). Based on
these reasonable estimates there was no indication of impairment.
The Neptune Goodwill on acquisition is allocated to the Global Equities team
CGU and at 30 September 2023 was £7,753,000 (31 March 2023: £7,753,000). At
30 September 2023 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 with reference to the projected cashflows relating to
the CGU over a period of 5 years, which used key assumptions such as net AuMA
growth (0.5%, 31 March 2023: 5.5%), terminal growth rate (2%, 31 March 2023:
2%) and a discount rate (13.8%, 31 March 2023: 13.8%). Based on these
reasonable estimates there was no indication of impairment.
The Architas Goodwill on acquisition is allocated to the Multi Asset team CGU
and at 30 September 2023 was £7,951,000 (31 March 2023: £7,951,000). At 30
September 2023 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 with reference to the projected cashflows relating to
the CGU over a period of 5 years, which used key assumptions such as net AuMA
growth rates (-3.0%, 31 March 2023: 0.2%), terminal growth rate (2%, 31 March
2023: 2%) and a discount rate (13.8%, 31 March 2023: 13.8). Based on this
assessment there was no indication of impairment.
Sensitivity analysis was carried out on this model which included changing the
discount rate and reducing new business to nil. The discount rate could be
increased by 1% without impacting goodwill and headroom above impairment was
£1.251 million. Net new business flows could be reduced to nil without
impacting goodwill and headroom above impairment was £2.590 million. Given
the headroom in our base forecasts management have concluded that no
impairment of the goodwill is required. An assessment of the goodwill will
be reperformed at the financial year end.
The Majedie goodwill on acquisition is allocated to the Global Fundamental
team CGU and at 30 September 2023 was £6,475,000 (31 March 2023:
£11,009,000). At 30 September 2023 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 with reference to the projected
cashflows relating to the CGU over a period of 5 years, which used key
assumptions such as net AuMA growth rates (-2.6%, 31 March 2023: 3.5%),
terminal growth rate (2%, 31 March 2023: 2%) and a discount rate (13.8%, 31
March 2023: 13.8%). The carrying amount of the CGU has been reduced to its
recoverable amount through the recognition of an impairment loss of £4.534
million against goodwill. This is largely attributable to net outflows and
current macroeconomic conditions.
Sensitivity analysis was carried out on this model which included changing the
discount rate and reducing the new business to nil. When increasing the
discount rate by 1%, this results in a further £1.116 million impairment.
When reducing the new business flows to nil this results in a £0.247 million
impairment. Management consider this to be a reasonably possible scenario,
however the five year modelling timeframe would give ample time for management
action. Given the impairment recognised in the period and our base forecasts
management have concluded that no further impairment of the goodwill is
required. An assessment of the goodwill will be reperformed at the financial
year end.
31-Mar-23 Goodwill impairment recognised in the period 30-Sep-23
£'000 £'000 £'000
ATI - Sustainable investment team 11,873 - 11,873
Neptune - Global Equity team 7,753 - 7,753
Architas - Multi-Asset team 7,951 - 7,951
Majedie - Global Fundamental team 11,009 (4,534) 6,475
38,586 (4,534) 34,052
12 Trade and other receivables
30-Sep-23 30-Sep-22 31-Mar-23
£'000 £'000 £'000
Trade receivables
- Fees receivable 16,614 19,325 20,732
- Unit Trust sales and cancellations 168,682 190,656 212,001
Prepayments and accrued income 9,369 8,631 8,949
194,665 218,612 241,682
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.
13 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.
14 Related party transactions
During the six months to 30 September 2023 the Group received fees from unit
trusts and ICVCs under management of £89,248,000 (2022: £102,678,000).
Transactions with these funds comprised creations of £1,501,150 (2022:
£1,953,952,000) and liquidations of £3,432,573,000 (2022: £2,878,294,000).
As at 30 September 2023 the Group owed the unit trusts £168,071,000 (2022:
£190,172,000) in respect of unit trust creations and was owed £183,123,000
(2022: £204,931,000) in respect of unit trust cancellations and fees.
During the six months to 30 September 2023 the Group received fees from
offshore funds under management of £4,882,000 (2022: £3,869,000).
Transactions with these funds comprised purchases of £nil (2022: £88,000)
and sales of £nil (2022: £57,000). As at 30 September 2023 the Group was
owed £490,000 (2022: £606,000) in respect of management 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.
15 Post balance sheet date event
There were no post balance sheet events.
16 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 the
second half of the year as the current risks as identified in the 2023 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 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 48 of the
2023 Annual Report and Note 2 "Financial risk management" on page 152 of the
2023 Annual Report.
17 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 30 September 2023 has not
been recognised in the results for the period.
18 Directors' responsibilities
The Directors confirm that this condensed set of interim financial statements
has been prepared in accordance with UK-adopted IFRS, and that the Half Year
Report herein includes a fair review of the information required by DTR 4.2.7,
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 4.2.8, 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 Chief Operating Officer
and Chief Financial Officer
15 November 2023
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
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