Liontrust (LIO) H2 2024 earnings summary

Executive summary

• AuMA was £27.8bn at 31 March 2024, down from £31.4bn a year earlier, with net outflows of £6.1bn over 12 months.

• Adjusted profit before tax fell 23% to £67.4m; statutory loss before tax was £0.6m, including non-cash impairment charges.

• Adjusted diluted EPS declined 28% to 79.2p; the 72p dividend was maintained.

• Strategy prioritizes organic growth, stronger distribution, product development and scalable operations, with selective M&A for investment or distribution capabilities.

Financial highlights

• Gross profit declined 19% to £186.1m; excluding performance fees, it was £175.7m, down 17%.

• Revenue margin was 0.67% on average AuMA of £28.3bn; excluding performance fees, it was 0.62%, down 0.5 bps YoY.

• Adjusted operating margin was 35.5%, down from 37.7% the prior year, with lower revenue partly offset by flexible costs.

• Staff costs fell 23% to £79.1m; total administration expenses declined 16%, while non-people costs rose just under 2%.

• Statutory loss before tax included a £37.1m non-cash impairment, mainly related to the Majedie and Architas acquisitions.

Outlook and guidance

• Priorities include improving client experience, broadening the product range, expanding international distribution and investing in technology.

• Management expected flow trends to improve through the year, while noting flows could remain challenging for another quarter or two.

• Capital allocation prioritizes organic investment and progressive dividends, with selective M&A.