Liontrust slips into the red after tough year, but paints upbeat picture

26th Jun 2024 07:54

(Sharecast News) - Asset manager Liontrust swung to a small loss in the year ended 31 March after seeing net outflows of more than £6bn due to an adverse trading environment, but said it's starting to see signs of a recovery.

Chief executive John Ions said the negative investor sentiment and market environment over the past 18 months - owing to high inflation, reductions in Covid savings and tax rises - was a "significant headwind for many of our strategies".

However, Ions said: "We have started to see signs of a change in investor sentiment and this is likely to move significantly when more central banks reduce interest rates and there is greater political and fiscal certainty in the UK."

Liontrust reported a statutory loss before tax of £0.6m for the year, down from a profit of £49.3m previously, while the adjusted pre-tax profit figure fell 23% to £67.4m.

Assets under management and advice were £27.8bn, down 11.5% year-on-year.

The company declared a second interim dividend of 50p per share, taking the full-year payout to 72p, unchanged on the previous year.

"Liontrust has an expanding and compelling range of investment teams with robust processes; broadening distribution and excellent client service; great engagement with our campaigns and content; a strong brand; and an enhanced operating model. This gives me great confidence that we have the platform to succeed in delivering growth."

Shares were down 2.2% at 734.4p by 0836 BST.