19th Apr 2023 10:35
(Alliance News) - Liontrust Asset Management PLC said on Wednesday it anticipates annual profit to be ahead of market expectations, but remains behind the year prior.
The London-based asset manager anticipates its adjusted pretax profit for the year ended March 31 2023 to be GBP86 million, compared to GBP96.6 million the year prior.
Liontrust said this was driven primarily by "stronger than expected" performance fee revenues of at least GBP17.0 million in financial 2023, compared to GBP12.6 million in 2022. This relates to its acquisition of Majedie Assesment Management, the company said.
Nevertheless, the Liontrust noted a "challenging" year in terms of net outflows and said it saw "mixed" performance for its funds, with net outflows of GBP2.0 billion for the final quarter of the year, and GBP4.8 billion overall.
Assets under management and advice were GBP31.4 billion at March 31 for the company, which reflects a 3.6% decrease over the final quarter of the year.
AuMA were GBP31.8 billion at April 17, the company said.
Looking ahead, Liontrust said it is "operating well" despite economic headwinds and will continue to broaden its products and distribution channels.
Chief Executive Officer John Ions said: "The financial strength of Liontrust, superior brand recognition and disciplined focus on investment processes in a very challenging environment is testament to the strong operating platform of the business. This gives me great confidence about the future of Liontrust."
Shares in Liontrust were down 8.0% to 860.00 pence each in London on Wednesday morning.
By Sabrina Penty; Alliance News reporter
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