Liontrust (LIO) H1 2025 earnings summary

Executive summary

• Gross profit was £81.1m, down from £98.6m; adjusted PBT was £25.8m versus £36.0m, while statutory PBT turned to £12.5m from a £10.1m loss.

• Net outflows were £2.1bn, improved from £3.2bn in the prior year; AuMA was £26.0bn at 30 September and £25.2bn by 14 November 2024.

• One-year investment performance improved, with 68% of funds in the top two quartiles as of October 2024.

• The interim dividend was maintained at 22p per share; the FY25 target is at least 72p, alongside a new £5m share buyback programme.

• Priorities include active management, product diversification, broader distribution, stronger client experience, and investment in technology and data capabilities.

Financial highlights

• Revenue excluding performance fees was £87.0m, down 12% YoY; gross profit excluding performance fees was £81.0m, down 12%.

• Performance fee revenue fell to £0.1m from £6.0m; gross profit was £81.1m, down 18% YoY.

• Adjusted operating profit was £24.8m, down 30%; adjusted PBT was £25.8m, down 28%.

• Adjusted diluted EPS was 30.31p, down 28% YoY; adjusted diluted EPS excluding performance fees was 30.28p, down 24%.

• Cash and cash equivalents were £88.5m, versus £96.9m at 30 September 2023.

Outlook and guidance

• Directors target a dividend of at least 72p per share for FY25; the dividend policy remains progressive.

• Transformation is scheduled for completion by March 2025, targeting £4.5m in annualised savings through staff reductions and fund rationalisation.

• Management expects a more favourable environment for active managers, citing anticipated lower inflation and interest rates, attractive valuations, and greater demand for alpha.

• Improving one-year performance, distribution activity, and stronger active-manager conditions were cited as supports for better net-flow prospects.