Liontrust (LIO) H2 2024 earnings summary

Executive summary

• Assets under management and advice (AuMA) stood at £27.8bn as of 31 March 2024, down 11.5% from the previous year, with net outflows of £6.1bn over 12 months.

• Adjusted profit before tax was £67.4m, a 23% decrease year-over-year; statutory loss before tax was £0.6m due to significant non-cash impairment and acquisition charges.

• Adjusted diluted EPS fell 28% to 79.2p; dividend maintained at 72.0p per share, with a second interim dividend of 50p payable in August 2024.

• Strong capital position with surplus capital of nearly £80m after regulatory deductions, supporting ongoing dividends and growth.

• Management remains confident in long-term strategy, focusing on diversification, distribution expansion, and technology investment.

Financial highlights

• Gross profit declined 19% to £186.1m; performance fee revenues fell to £10.4m from £18.5m.

• Revenue margin was 0.67% on average AuMA of £28.3bn, stable excluding performance fees at 0.62%.

• Adjusted operating margin was 35.5%, down from 37.7% the prior year.

• Staff costs reduced by 23% to £79.1m; total administration expenses down 16%.

• Net cash from operating activities was £28.2m, down from £43.4m last year.

Outlook and guidance

• Focus on enhancing client experience, broadening product range, and expanding international distribution.

• Continued investment in technology, including new portfolio, research, and execution management systems.

• Management sees signs of improving investor sentiment, expecting further improvement with lower interest rates and greater UK political certainty.

• Disciplined capital allocation policy prioritizing organic investment, progressive dividends, and selective M&A.

• Optimistic about long-term UK market prospects and well positioned for a recovery in UK equities.