Liontrust (LIO) H1 2025 earnings summary

Executive summary

• Gross profit for the six months ended 30 September 2024 was £81.1m, down from £98.6m in 2023, with adjusted profit before tax at £25.8m versus £36.0m last year.

• Statutory profit before tax was £12.5m, a turnaround from a £10.1m loss in 2023, reflecting lower non-recurring charges.

• Interim dividend maintained at 22.0p per share, with a full-year target of at least 72p per share and a new £5m share buyback programme.

• Assets under management and advice (AuMA) declined to £26.0bn at 30 September 2024 and further to £25.2bn by 14 November 2024.

• Net outflows for the period were £2.1bn, an improvement from £3.2bn outflows in the prior year.

Financial highlights

• Revenue for the period was £87.0m (2023: £104.5m), with performance fee revenue dropping sharply to £0.1m from £6.0m.

• Adjusted operating margin fell to 30.5% from 35.9% year-over-year.

• Basic and diluted EPS were 13.67p, compared to a loss per share of 14.61p in 2023.

• Cash and cash equivalents decreased to £88.5m from £96.9m at 30 September 2023.

• Surplus regulatory capital after foreseeable dividends stood at £45.5m as of 30 September 2024.

Outlook and guidance

• Management expects a more favourable environment for active managers due to anticipated lower inflation and interest rates.

• Strategic focus remains on enhancing client experience, diversifying products, broadening distribution, and strengthening technology.

• Cost savings of £4.5m annually are targeted through a 12% reduction in staff and fund rationalisation by March 2025.

• Dividend policy remains progressive, with a minimum 72p per share targeted for FY25.