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November 26, 2020

Liontrust profit slips though Architas business takeover aids asset growth

Liontrust Asset Management has reported a fall in profit though assets grew supported by the acquisition of Architas’ UK investment arm.

Key metrics 

In the six months to September 2020, the firm reported a pre-tax profit of £6.9m that includes £15.4m in costs linked to acquisition related and associated restructuring expenses. The figure also included “the amortisation of the related intangible assets and other non-cash and non-recurring costs,” noted the firm.

This is a 26% fall from the previous year.

However, adjusted profit before tax surged 31% to £22.3m from £17m.

The London-based firm’s assets under management and advice (AuMA) were £20.6bn. This is a 28% jump since the start of the financial year and 41% from the prior year.

The takeover of the Architas UK Investment Business contributed £5.6bn to AuMA. Net inflows increased to £1.75bn from £1.37bn.

Liontrust CEO John Ions said: “The scale of the achievement is shown by Liontrust continuing to appear in the top 10 for retail sales in the UK. According to the Pridham Report, Liontrust had the 6th highest net retail sales in the UK and the 8th highest gross retail sales in the UK in the third quarter of 2020.”

As of 20 November 2020, AuMA reached £28.1bn.

The firm announced an interim dividend of 11 pence per share, a 22% increase from 9 pence per share a year earlier.

Liontrust chairman Alastair Barbour said: “Key decisions have continued to be made and implemented, ensuring that Liontrust will come out of the Covid-19 pandemic in a strong position. These decisions include the acquisition of the Architas UK Investment Business, which was successfully completed on 30 October 2020.

“Acquiring and integrating a new business is challenging at the best of times but especially so and impressive during a global pandemic.”

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