16th Jun 2016 07:59
LONDON (Alliance News) - Liontrust Asset Management PLC, the London-listed money manager established in 1995, on Thursday reported higher pretax profit, on growing revenue and assets under management, and raised its full-year dividend 50% in response.
Pretax profit rose to GBP9.4 million in the year ended March 31, from GBP7.3 million a year earlier, Liontrust said in a statement, as revenue increased to GBP45.0 million from GBP36.8 million, boosted as performance fees rose to GBP7.4 million from GBP3.2 million.
Assets under management rose to GBP4.8 billion from GBP4.5 billion over the course of the year, boosted by a net inflow of GBP255 million. As of Tuesday this week, Liontrust said, assets under management were little changed from the end of March. The acquisition of Argonaut Capital Partners LLP's European income fund management business, reported in April and set to complete in July, is to add GBP293 million to Liontrust's assets.
"We have further broadened our investment teams this year, which is a strategy we are committed to. Adding teams is in itself not a problem, the greater challenge is in finding ones that provide the rigorous investment process and discipline that we and our clients demand. We are not looking to offer every investment proposition, more to ensure we offer the best we can in those chosen areas," Chief Executive John Ions said in a statement.
"The global equity team that we recruited last year met this criteria and our agreed acquisition of the European income business of Argonaut Capital Partners LLP will enhance further our equity income credentials and give us European as well as UK, Asia and Global income funds. The demand for income generation has never been greater, and this theme will only continue to grow," Ions said.
Adrian Collins will remain as chairman but give up his executive powers from September 13, Liontrust said. In September 2015, the month of Liontrust's last annual meeting of shareholders, advisory firm PIRC said "best practice dictates that the chair needs to be independent and should not hold executive responsibilities within the company".
Collins said the results allowed the company to declare a second interim dividend per share of 9.0 pence, which brings the total dividend per share for the financial year ended March 31 to 12.0p, up from 8.0p a year earlier.
"The continued growth of your company and the momentum behind it is very pleasing given how competitive our industry is and some of the challenges facing all fund management groups. As an active asset manager, we have to show continually that we deliver added value to our clients and investors, both through the long-term performance of the funds and portfolios we manage and the service we provide," Collins said in a statement.
"There will always be a place for active managers who can achieve this and the distinctive way in which our fund managers run money and explain it to our investors certainly aids our cause, especially during volatile periods for markets," Collins said.
Shares in Liontrust were up 5.2% at 284.00p on Thursday morning in London.
By Samuel Agini; [email protected]; @samuelagini
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