11th Nov 2014 08:48
LONDON (Alliance News) - Liontrust Asset Management PLC Tuesday said its first-half pretax profit more than doubled, driven by growth in its assets under management.
In a statement, Liontrust said it made a GBP3.2 million pretax profit in the six months ended September 30, compared with GBP1.3 million in the corresponding period last year.
The rise in pretax profit came as Liontrust's assets under management rose to GBP3.8 billion at the end of September, from GBP3.4 billion at the same stage last year. At the beginning of the first half of the current financial year assets under management had amounted to GBP3.61 billion.
According to Liontrust, the assets it manages amounted to GBP4.2 billion at the close of business on November 7.
The group reported GBP284 million of net inflows for the six months to end of September, compared with GBP315 million in the corresponding period last year. It has since been awarded a UK equity income segregated mandate of GBP314 million, which was funded in October and is included in the GBP4.2 billion figure above.
Chief Executive John Ions welcomed the developments in Liontrust's assets under management, given trends across the industry.
"This is pleasing given that in September 2014, according to the Investment Management Association, retail sales across the industry fell to their lowest level since January 2013. We have delivered net inflows despite the IMA's UK All Companies sector suffering net outflows of GBP258 million in September," Ions said in a statement.
The CEO said that investment and improvements in Liontrust's sales and marketing have been vital in driving growth.
"We continue to develop our strong distribution platform and will have implemented a new client relationship management system and website by the end of the year. This will enables us to improve still further the high standards of customer service we have set ourselves including through more personalised communications to clients," Ions said.
"As part of this, we have reorganised UK distribution with Simon Hildrey becoming responsible for the sales and marketing strategy to ensure we have complete alignment across distribution. We have also recruited James Beddall to work alongside Jonathan Hughes-Morgan as Co-Head of International Sales," Ions added.
"All these developments give me great confidence about continued progress during the second half of our financial year," the CEO said.
Liontrust doubled its interim dividend to 2.0 pence per share.
Liontrust shares were up 1.6% at 253.98 pence inside the first hour of trading on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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