We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Liontrust Asset Management Plc | LSE:LIO | London | Ordinary Share | GB0007388407 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -7.00 | -1.01% | 687.00 | 686.00 | 689.00 | 692.00 | 678.00 | 692.00 | 133,294 | 16:29:29 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Unit Inv Tr, Closed-end Mgmt | 243.34M | 39.33M | 0.6160 | 11.15 | 438.63M |
From Apr 2019 to Apr 2024
TIDMLIO
RNS Number : 1489P
Liontrust Asset Management PLC
15 November 2016
Embargoed until 0700 hours, Tuesday 15 November 2016
LIONTRUST ASSET MANAGEMENT PLC
HALF YEARLY REPORT FOR THE SIX MONTHSED
30 SEPTEMBER 2016
Liontrust Asset Management Plc ("Liontrust", the "Company", or the "Group"), the independent fund management group, today announces its Half Yearly Report for the six months ended 30 September 2016.
Results:
-- Revenues of GBP22.0 million (2015: GBP18.7 million) an increase of 18% compared to the same period last year
-- Adjusted profit before tax(1) of GBP6.8 million (2015: GBP5.9 million), an increase of 16%
-- Adjusted diluted earnings per share(1) of 11.9p per share (2015: 10.2 pence per share), an increase of 16%
-- Profit before tax of GBP2.2 million (2015: GBP4.2 million) includes costs of GBP4.6 million (2015: GBP1.7 million) relating to the amortisation of the related intangible asset and other non-cash and non-recurring costs (see note 6 below)
Dividend:
-- Interim dividend per share of 4.0 pence (2015: 3.0 pence) payable on 22 December 2016, an increase of 33%
Assets under management:
-- On 30 September 2016, assets under management were GBP5.7 billion (2015: GBP4.4 billion) -- Close of business on 11 November 2016, assets under management were GBP5.6 billion
Flows:
-- Net inflows for the six months to 30 September 2016 of GBP92 million (2015: GBP110 million)
Commenting on the results, John Ions, Chief Executive, said:
"We have continued to grow and enhance the Company over the first half of the financial year. On 30 September 2016, our assets under management reached GBP5.7 billion and we expanded our fund management capability through the acquisition of the European Income business from Argonaut Capital Partners LLP. This growth has led to an increase in our revenues and the interim dividend by 18% and 33% respectively.
"This expansion has come during a challenging period for fund management groups. The vote on 23 June in favour of Britain leaving the EU and the US Presidential election campaign have exacerbated significantly the political uncertainty this year and the industry has suffered negative sales of equity funds every month in 2016 among retail investors, with the UK All Companies sector being the worst net seller in six of the first nine months of the year. It is, therefore, pleasing that we have generated net positive flows over the last two quarters.
"We are building the Company through focusing on what we do well both in fund management and in running the business. We are staunch believers in the benefits of active fund management over the long term. Passive investments have a key role to play in investors' portfolios but, equally, so do highly skilled active fund managers who can generate outperformance over the long term by applying robust investment processes. It is not a simple either or argument.
"From launch in November 2006 to the end of October 2016, for example, the Liontrust European Growth fund returned 136.6% against 63.6% by the MSCI Europe ex-UK Index. From launch in November 2005 to the end of October 2016, the Liontrust Special Situations Fund returned 298.1% against 103.5% by the FTSE All Share Index.
"We are also focused on engaging with our investors, whether they are institutional investors, professional advisers or private investors. This is essential if we are really to understand their needs and objectives. At the end of January 2017, for example, we will be taking our Annual Investment Conference on the road where we expect our fund managers to present to around 350 intermediaries.
"A demonstration of how much progress we have made is the fact that we can attract someone of the calibre of Ian Chimes to join us as Head of Global Distribution in the New Year. The recruitment of Ian is a key part in the next stage of the development and expansion of Liontrust and is yet another reason why we are looking forward with confidence."
For further information please contact:
Liontrust Asset Management 020 7412 1700
John Ions www.liontrust.co.uk
Vinay Abrol
Simon Hildrey - Head of Marketing & Distribution Strategy
Numis Securities Limited 020 7260 1000
Charles Farquhar, Andrew Holloway
Macquarie Capital (Europe) Limited 020 3037 2000
Advisory - Jonny Allison, Kavita Choitram
Corporate Broking - Alex Reynolds, Nicholas Harland
Chairman's Statement
Introduction
I have been Chairman of Liontrust since 2009 and was Executive Chairman for six of those years until becoming Non-executive again in September 2016. I look back on the growth and development of Liontrust with great pride. I would like to thank my fellow directors, the fund managers and all the staff at Liontrust for their tremendous effort and contribution in making the Company successful.
The fruits of this work can be seen in Liontrust's results for the first six months of our financial year where our assets under management ("AuM") have increased by GBP900 million to GBP5.7 billion, our revenues have increased by 18% compared to the first half of the last financial year and our Adjusted profit before tax(1) has grown by 16% to GBP6.8 million.
The process of creating a successful asset management company is not complicated yet it is far from simple to implement in practice. It requires excellent fund management teams, dedicated and focused distribution along with hard work and collaboration across the whole business. The need for high quality fund management, whether to generate growth, to provide a strong and regular flow of income or to offer a long-term savings solution to consumers, has never been greater. The challenges and opportunities for asset managers are arguably, therefore, greater than ever as well.
The development of Liontrust over the past six years under the leadership of John Ions has laid tremendous foundations for ensuring the Company is successful well into the future. We continue to diversify our fund management capability while focusing on those asset classes where we believe we have particular expertise. Our distribution is expanding in continental Europe to build on the success we have enjoyed in the UK over the past few years. We continue to develop brand awareness and engagement in the UK. We have been investing in the business, such as implementing a new dealing system, to ensure we can support further growth over the coming months and years.
We are well placed to withstand any external uncertainty or shocks, such as the unprecedented vote to leave the EU on 23 June 2016 and the unpredictable US Presidential election campaign in the first half of our financial year. This gives me great confidence, therefore, about the ability of Liontrust to continue to achieve our growth ambitions over the next six years.
Results
Adjusted profit before tax(1) was GBP6.838 million (2015: GBP5.907 million) an increase of 16% compared to last year. Adjusted basic earnings per share(1) of 12.14 pence (2015: 10.69 pence), an increase of 14% and Adjusted diluted earnings per share(1) of 11.89 pence (2015: 10.22 pence), an increase of 16%.
Profit before tax of GBP2,245 million (2015: GBP4.235 million) includes a loss of GBP4.593 million (2015: GBP5,219 million) of Adjustments (see note 6 below).
Revenues of GBP22.0 million (2015: GBP18.7 million), an increase of 18%.
Dividend
In accordance with the Company's dividend policy, the Board is declaring an interim dividend per share of 4.0 pence (2015: 3.0 pence), which will be payable on 22 December 2016 to shareholders who are on the register as at 25 November 2016, the shares going ex-dividend on 24 November 2016.
Assets under Management
On 30 September 2016, our AuM stood at GBP5,685 million and were broken down by type and process as follows:-
Hot Features
Premium
Offshore
Process Total Institutional UK Retail MPS(2) Funds
(GBPm) (GBPm) (GBPm) (GBPm) (GBPm)
Cashflow Solution 747 491 227 - 29
Economic Advantage 3,192 215 2,930 - 47
Macro-Thematic 768 325 416 - 27
European Income 271 - 271 - -
Asia Income 81 - 80 - 1
Structural Opportunities 24 - - - 24
Multi-Asset 553 324 - 229 -
Indexed 49 - 49 - -
Total 5,685 1,355 3,973 229 128
On 11 November 2016, our AuM was GBP5.605 billion.
Fund Flows
Liontrust has recorded net inflows for the half year are GBP92 million (2015: GBP110 million). A reconciliation of fund flows and AuM over the half year is as follows:-
Offshore
Total Institutional UK Retail MPS(2) Funds
GBPm GBPm GBPm GBPm GBPm
Opening AuM - 1 April
2016 4,791 1,138 3,330 204 119
Net flows 92 77 4 10 1
Acquisitions 272 - 272 - -
Market and Investment
performance 530 140 367 15 8
Closing AuM - 30 September
2016 5,685 1,355 3,973 229 128
Fund Performance (Quartile ranking)
The strength of Liontrust's fund management capability is shown by the fact that all bar one of its actively managed unit trust funds have outperformed the average fund in their respective Investment Association sectors since launch or since the fund managers were appointed to 30 September 2016.
Quartile Quartile Quartile Quartile Launch
ranking ranking ranking ranking Date/Manager
- Since - 5 year - 3 year - 1 year Appointed
Launch/Manager
Appointed
------------------------------ ---------------- ---------- ---------- ---------- --------------
Liontrust UK Growth
Fund 1 2 1 1 25/03/2009
------------------------------ ---------------- ---------- ---------- ---------- --------------
Liontrust Special Situations
Fund 1 1 1 1 10/11/2005
------------------------------ ---------------- ---------- ---------- ---------- --------------
Liontrust UK Smaller
Companies Fund 1 1 1 1 08/01/1998
------------------------------ ---------------- ---------- ---------- ---------- --------------
Liontrust UK Micro 4 - - - 09/03/2016
Cap Fund
------------------------------ ---------------- ---------- ---------- ---------- --------------
Liontrust Macro Equity
Income Fund 1 4 3 4 31/10/2003
------------------------------ ---------------- ---------- ---------- ---------- --------------
Liontrust Macro UK
Growth Fund 1 4 3 4 01/08/2002
------------------------------ ---------------- ---------- ---------- ---------- --------------
Liontrust European
Income Fund 3 3 3 4 15/12/2005
------------------------------ ---------------- ---------- ---------- ---------- --------------
Liontrust European
Enhanced Income Fund 3 4 3 4 30/04/2010
------------------------------ ---------------- ---------- ---------- ---------- --------------
Liontrust European
Growth Fund 1 2 1 1 15/11/2006
------------------------------ ---------------- ---------- ---------- ---------- --------------
Liontrust Asia Income
Fund 1 - 2 1 05/03/2012
------------------------------ ---------------- ---------- ---------- ---------- --------------
Liontrust Global Income
Fund 3 - 4 3 03/07/2013
------------------------------ ---------------- ---------- ---------- ---------- --------------
Source: Financial Express, total return, bid to bid, net, to 30 September 2016 unless otherwise stated, data is accurate as at 1 October 2016. The above funds are all UK authorised unit trusts (primary share class). Liontrust FTSE 100 Tracker Fund (index fund) not included. The value of investments and the income from them can fall as well as rise. Investors may not get back the amount originally subscribed.
Outlook
We have made great progress over the past couple of years to put us in a very strong position to take advantage of the growing need for excellence in fund management in the UK and internationally. We have continued to diversify our fund management capability, we have expanded our equity income capability, we are strengthening further our distribution team and we have developed the infrastructure across all our departments to generate and manage our expansion. I am optimistic these developments will ensure we can continue to advance for the benefit of investors and shareholders.
Notes
1 See note 2 below for definitions of alternative performance measures; and
2 Managed Portfolio Services are where we act as discretionary fund manager to a range of model portfolios which are marketed to advisory intermediates in the UK.
Adrian Collins
Non-executive Chairman
Consolidated Statement of Comprehensive Income
Six months ended 30 September 2016
Six Six Year
months months
to to ended
30-Sep-16 30-Sep-15 31-Mar-16
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 4 22,043 18,708 44,991
Cost of sales (25) (26) (51)
--------------------------------- ------ ------------ ------------ ----------
Gross profit 22,018 18,682 44,940
Gain/(loss)on financial assets 104 - (1)
Administration expenses 5 (19,886) (14,455) (35,551)
--------------------------------- ------ ------------ ------------ ----------
Operating profit 2,236 4,227 9,388
Interest receivable 9 8 16
--------------------------------- ------ ------------ ------------ ----------
Profit before tax 2,245 4,235 9,404
Taxation 7 (496) (916) (2,094)
--------------------------------- ------ ------------ ------------ ----------
Profit for the period 1,749 3,319 7,310
Total comprehensive income 1,749 3,319 7,310
================================= ====== ============ ============ ==========
Pence Pence Pence
-------------------------------- ------ ------------ ------------ ----------
Basic earnings per share 8 3.88 7.60 16.48
Diluted earnings per share 8 3.80 7.27 16.06
--------------------------------- ------ ------------ ------------ ----------
Consolidated Balance Sheet
As at 30 September 2016
30-Sep-16 30-Sep-15 31-Mar-16
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
Assets
Non current assets
Intangible assets 9 5,273 3,774 2,550
Property, plant and
equipment 191 278 247
Deferred tax assets 1,052 1,076 1,052
6,516 5,128 3,849
----------------------------- ------ ------------ ------------ ----------
Current assets
Trade and other receivables 49,058 18,951 35,413
Financial assets 10 1,757 668 139
Cash and cash equivalents 18,333 16,176 18,967
------------------------------ ------
Total current assets 69,148 35,795 54,519
------------------------------ ------ ------------ ------------ ----------
Liabilities
Current liabilities
Trade and other payables (52,304) (16,587) (31,279)
Corporation tax payable (907) (1,007) (911)
Total current liabilities (53,211) (17,594) (32,190)
------------------------------ ------ ------------ ------------ ----------
Net current assets 15,937 18,201 22,329
------------------------------ ------ ------------ ------------ ----------
Net assets 22,453 23,329 26,178
============================== ====== ============ ============ ==========
Shareholders' equity
Ordinary shares 454 454 454
Share premium 17,692 17,692 17,692
Capital redemption reserve 19 19 19
Retained earnings 7,323 7,309 9,330 Own shares held (3,035) (2,145) (1,317) Total equity 22,453 23,329 26,178 ============================== ====== ============ ============ ==========
Consolidated Cash Flow Statement
Six months ended 30 September 2016
Six Six Year
months months
to to ended
30-Sep-16 30-Sep-15 31-Mar-16
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash inflow from operations 29,365 20,570 48,614
Cash outflow from operations (21,177) (15,438) (38,337)
Cash inflow/(outflow) from changes
in unit trust receivables and
payables 2,535 (677) (583)
--------------------------------------- ------------ ------------ ----------
Net cash from operations 10,723 4,455 9,694
Interest received 9 8 16
Tax paid (500) (583) (1,833)
------------ ------------ ----------
Net cash from operating activities 10,232 3,880 7,877
--------------------------------------- ------------ ------------ ----------
Cash flows from investing activities
Purchase of property and equipment (8) (57) (93)
Acquisitions (4,083) - -
Purchase of ICI's - (207) (207)
Purchase of financial assets (940) - -
Purchase of seeding investments (110) (74) (98)
Sale of seeding investments 85 - 191
------------ ------------ ----------
Net cash used in investing activities (5,056) (338) (207)
--------------------------------------- ------------ ------------ ----------
Cash flows from financing activities
Purchase of own shares (1,718) (1,150) (1,136)
Dividends paid (4,092) (2,609) (3,960)
--------------------------------------- ------------ ------------ ----------
Net cash used in financing activities (5,810) (3,759) (5,096)
Net (decrease)/increase in cash
and cash equivalents (634) (217) 2,574
Opening cash and cash equivalents* 18,967 16,393 16,393
Closing cash and cash equivalents 18,333 16,176 18,967
======================================= ============ ============ ==========
* Cash and cash equivalents consists only of cash balances.
Consolidated Statement of Change in Equity
Six months ended 30 September 2016
Share Share Capital Retained Own shares Total
capital premium redemption earnings held Equity
GBP GBP
'000 '000 GBP '000 GBP '000 GBP '000 GBP '000
Balance at 1 April
2016 brought forward 454 17,692 19 9,330 (1,317) 26,178
Profit for the period - - - 1,749 - 1,749
Total comprehensive
income for the period - - - 1,749 - 1,749
Dividends paid - - - (4,092) - (4,092)
Purchase of own shares - - - - (1,718) (1,718)
Equity share options
issued - - - 336 - 336
Balance at 30 September
2016 454 17,692 19 7,323 (3,035) 22,453
========================== ======== ======== =========== ========= =========== =========
Consolidated Statement of Change in Equity
Six months ended 30 September 2015
Share Share Capital Retained Own shares Total
capital premium redemption earnings held Equity
GBP GBP
'000 '000 GBP '000 GBP '000 GBP '000 GBP '000
Balance at 1 April
2015 brought forward 454 17,692 19 11,395 (5,812) 23,748
Profit for the period - - - 3,319 - 3,319
Total comprehensive
income for the period - - - 3,319 - 3,319
Dividends paid - - - (2,609) - (2,609)
Purchase of own shares - - - - (1,150) (1,150)
Purchase of ICI's - - - (5,024) 4,817 (207)
Equity share options
issued - - - 228 - 228
Balance at 30 September
2015 454 17,692 19 7,309 (2,145) 23,329
========================== ======== ======== =========== ========= =========== =========
Consolidated Statement of Change in Equity
Year ended 31 March 2016
Share Share Capital Retained Own shares Total
capital premium redemption earnings held Equity
GBP GBP
'000 '000 GBP '000 GBP '000 GBP '000 GBP '000
Balance at 1 April
2015 brought forward 454 17,692 19 11,395 (5,812) 23,748
Profit for the period - - - 7,310 - 7,310
Total comprehensive
income for the period - - - 7,310 - 7,310
Dividends paid - - - (3,960) - (3,960)
Purchase of own shares - - - - (1,136) (1,136)
Purchase of ICI's - - - (5.838) 5,631 (207)
Equity share options
issued - - - 423 - 423
Balance at 31 March
2016 454 17,692 19 9,330 (1,317) 26,178
========================= ======== ======== =========== ========= =========== =========
Notes to the Financial Statements
1. Principal accounting policies
This Half Yearly Report is unaudited and does not constitute statutory accounts within the meaning of s434 of the Companies Act 2006. The financial information for the half years ended 30 September 2016 and 2015 has not been audited or reviewed by the auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information. The statutory accounts for the year ended 31 March 2016, which were prepared in accordance with International Financial Reporting Standards, comprising standards and interpretations approved by either the International Accounting Standards Board or the International Financial Reporting Interpretations Committee or their predecessors, as adopted by the European Union ("IFRS"), and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, have been delivered to the Registrar of Companies. The auditors' opinion on these accounts was unqualified and did not contain a statement made under s498 of the Companies Act 2006.
The financial statements have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority ("DTR") and with IAS 34 'Interim Financial Reporting'.
The accounting policies applied in this Half Yearly Report are consistent with those applied in the Group's most recent annual accounts.
2. Alternative Performance Measures
The Group assess its performance using a variety of measures that are not defined under IFRS and are therefore termed alternative performance measures ("APM's"). The APMs that we use may not be directly comparable with similarly named measures used by other companies.
The Group uses the APM's to present its financial performance, in a manner which is aligned with the requirements of our stakeholders. By presenting these APM's it enables comparison with our peers who may use different accounting policies.
The Group uses the following APM's:
Alternative Performance
Measure Definition Reconciliation
Adjusted profit before Profit before tax, before Note 6
tax depreciation, amortisation,
non-recurring items*
and share incentivisation
schemes
Adjusted profit before tax is used to present a measure of profitability which excludes the effects of non-recurring and non-cash items and capital investment (depreciation and amortisation), enabling comparison with our peers and to provide a consistent measure of the businesses performance.
Adjusted operating Adjusted profit before Note 6
profit tax, before interest.
Adjusted basic earnings Adjusted profit before
per share tax divided by the weighted
average number of shares
in issue for the period n/a
Adjusted diluted earnings Adjusted profit before
per share tax divided by the diluted
weighted average number
of shares in issue for
the period n/a
* Non-recurring items include cost reduction expenses, restructuring costs, acquisition related costs, integration costs, severance compensation and non-recurring legal expenses.
3. Segmental reporting
The Group's operates only in one business segment - Investment management.
The Group offers different fund products through different distribution channels. All financial, business and strategic decisions are made centrally by the Board, which determines the key performance indicators of the Group. The Group reviews financial information presented at a Group level. The Board, is therefore, the chief operating decision-maker for the Group. The information used to allocate resources and assess performance is reviewed for the Group as a whole. On this basis, the Group considers itself to be a single-segment investment management business.
4. Revenue
Six Six Year
months months
to to ended
30-Sep-16 30-Sep-15 31-Mar-16
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Revenue
- Revenue 21,985 18,666 37,634
- Performance fee revenue 58 42 7,357
------------ ------------ ----------
Total Revenue 22,043 18,708 44,991
============================ ============ ============ ==========
5. Administration expenses
Six Six Year
months months
to to ended
30-Sep-16 30-Sep-15 31-Mar-16
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Employee related expenses
Director and employee costs 2,291 1,886 4,459
Pension costs 151 101 217
Share incentivisation expense 670 240 560
Severance compensation 25 6 93
3,137 2,233 5,329
Non employee related expenses
Members' drawings charged as an expense 8,175 6,429 17,665
Restructuring (acquisition related and
other) 818 22 1,884
Members' share incentivisation expense 1,588 123 111
Depreciation, Intangible asset amortisation
and impairment 1,424 1,281 2,571
Other administration expenses 4,744 4,367 7,991
--------------------------------------------- ------------ ------------ ----------
Total administration expenses 19,886 14,455 35,551
============================================= ============ ============ ==========
6. Adjusted profit before tax
Adjusted profit before tax is reconciled in the table below:
Six Six Year
months months
to to ended
30-Sep-16 30-Sep-15 31-Mar-16
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Profit for the period 1,749 3,319 7,310
Taxation 496 916 2,094
--------------------------------------------- ------------ ------------ ----------
Profit before tax 2,245 4,235 9,404
Employee related share incentivisation
expense 573 240 560
Member related share incentivisation
expense 1,588 123 111
Severance compensation 190 6 93
Professional services(1) 818 22 1,884
Depreciation, Intangible asset amortisation
and impairment 1,424 1,281 2,571
Adjustments 4,593 1,672 5,219
--------------------------------------------- ------------ ------------ ----------
Adjusted profit before tax 6,838 5,907 14,623
--------------------------------------------- ------------ ------------ ----------
Interest receivable (9) (8) (16)
Adjusted operating profit 6,829 5,899 14,607
--------------------------------------------- ------------ ------------ ----------
Adjusted basic earnings per share 12.14 10.69 26.38
Adjusted diluted earnings per share 11.89 10.22 25.70
--------------------------------------------- ------------ ------------ ----------
(1) Includes legal costs relating to claim by a former member and costs relating to the acquisition of the Argonaut business.
7. Taxation
The half yearly tax charge has been calculated at the estimated full year effective UK corporation tax rate of 20% (2015: 20%).
8. Earnings per share
The calculation of basic earnings per share is based on profit after taxation and the weighted average number of Ordinary Shares in issue for each period. The weighted average number of Ordinary Shares for the six months ended 30 September 2016 was 45,043,211 (30 September 2015: 46,658,542, 31 March 2016: 44,346,674). Shares held by the Liontrust Asset Management Employee Trust are not eligible for dividends and are treated as cancelled for the purposes of calculating earnings per share.
Diluted earnings per share is calculated on the same bases as set out above, after adjusting the weighted average number of Ordinary Shares for the effect of options to subscribe for new Ordinary Shares that were in existence during the six months ended 30 September 2016. The adjusted weighted average number of Ordinary Shares so calculated for the period was 46,010,147 (30 September 2015: 45,656,303, 31 March 2016: 45,518,720). This is reconciled to the actual weighted number of Ordinary Shares as follows:
30-Sep-16 30-Sep-15 31-Mar-16
Weighted average number of Ordinary
Shares 45,043,211 43,658,542 44,346,674
Weighted average number of dilutive
Ordinary shares under option:
- to Liontrust Option Plan 35,297 44,126 37,062
- to the Deferred Bonus and Variable
Allocation Plan 401,009 402,870 324,602
- to the Liontrust Members Incentive
Plan 19,891 1,550,765 810,382
- to the Liontrust Long Term Incentive
Plan 510,739 - -
Adjusted weighted average number of
Ordinary Shares 46,010,147 45,656,303 45,518,720
========================================= =========== =========== ===========
9. Intangible assets
Intangible assets represent investment management contracts that have been capitalised upon acquisition and are amortised on a straight-line basis over a period of 5 years. The intangible asset on the balance sheet represents investment management contracts as follows:
30-Sep-16 30-Sep-15 31-Mar-16
GBP'000 GBP'000 GBP'000
Investment management contracts acquired
from Walker Crips Asset Managers Limited 1,326 3,774 2,550
Investment management contracts acquired
from Argonaut 3,947 - -
5,273 3,774 2,550
========== ========== ==========
As noted in the 2016 Annual report we agreed to acquire the European income business of Argonaut Capital Partners LLP (the 'acquisition'). The acquisition completed in July 2016.
Determining whether a transaction is acquisition of a business or a separately identifiable asset is a matter of significant judgement. It involves determining whether a particular set of assets and activities are capable of being conducted and managed as a business by a market participant. Directors have considered all relevant aspects of the acquisition in conjunction with the guidance under the relevant accounting standards and concluded that the Argonaut acquisition was not an acquisition of a business because the assets purchased by the Group were not capable of being managed as a business in their own capacity. As such assets acquired have been recognised as intangible assets.
10. Financial Assets
Assets held at fair value through profit and loss:
The Group's assets held at fair value through profit and loss represent units in the UK Authorised unit trusts held in the manager's box (these are valued at bid price) and shares in the sub-funds of Liontrust Global Funds Plc held as part of the Liontrust DBVAP.
Assets held as available-for-sale:
The Group's assets held as available-for-sale represent shares in Liontrust GF Macro Equity Income Fund, Liontrust GF Global Strategic Equity Fund, Liontrust GF European Strategic Equity Fund, Liontrust GF UK Growth Fund, Liontrust GF Global Water & Agricultural Fund and Liontrust GF Asia Income Fund (all sub-funds of Liontrust Global Funds Plc) and are valued at bid price).
11. Related party transactions
During the six months to 30 September 2016 the Group received fees from unit trusts under management of GBP16,792,000 (2015: GBP16,291,000). Transactions with these unit trusts comprised creations of GBP374,117,000 (2015: GBP215,667,000) and liquidations of GBP373,947,000 (2015: GBP115,711,000). Directors can invest in unit trusts managed by the Group on commercial terms that are no more favourable than those available to staff in general. As at 30 September 2016 the Group owed the unit trusts GBP43,130,000 (2015: GBP12,764,000) in respect of unit trust creations and was owed GBP43,131,000 (2015: GBP13,391,000) in respect of unit trust cancellations and fees.
During the six months to 30 September 2016 the Group received fees from offshore funds under management of GBP613,000 (2015: GBP547,000). Transactions with these funds comprised purchases of GBP110,000 (2015: GBP74,000) and sales of GBP85,000 (2015: GBPnil). As at 30 September 2016 the Group was owed GBP99,000 (2015: GBP185,000) in respect of management fees.
As at 30 September 2016 members owed Liontrust Fund Partners LLP and Liontrust Investment Partners LLP (the 'LLPs') GBP492,000 (2015: GBP706,000). These loans were provided in connection with the relevant members' duties as a member of the relevant LLP.
During the six months to 30 September 2016 remuneration paid to key decision makers (the Executive Directors) was GBP430,000 (2015: GBP449,000).
12. Contingent assets and liabilities
The Group can earn performance fees on some of the segregated and fund accounts that it manages. In some cases a proportion of the fee earned is deferred until the next performance fee is payable or offset against future underperformance on that account. As there is no certainty that such deferred fees will be collectable in future years, the Group's accounting policy is to include performance fees in income only when they become due and collectable and therefore the element (if any) deferred beyond 30 September 2016 has not been recognised in the results for the year.
In the normal course of business a contingent liability has arisen in relation to a claim made by a former member against Liontrust Asset Management Plc, Liontrust Investment Partners LLP ("LIP"), Liontrust Investment Services Limited and the individual members of LIP. As the timing and amount of any potential liability is unknown and cannot be reliably estimated at this stage they are not disclosed.
A contingent liability has arisen in relation to a tax covenant claim by Walker Crips Group Plc in relation to the acquisition of Walker Crips Asset Managers Limited in April 2012 and for which the underlying basis of the claim is unclear at this time. As the timing and amount of any potential liability is unknown and cannot be reliably estimated at this stage, it is not disclosed.
A contingent liability has arisen in relation to expense caps which are payable to the Offshore funds where expenses for each fund exceed the agreed total expense ratio as set out in the Prospectus. In accordance with the Prospectus, the amount payable to the offshore funds has not crystallised for certain funds at 30 September 2016, the potential liability is unknown and cannot be reliably estimated and has therefore not been disclosed.
13. Key risks
The Directors have identified the risks and uncertainties that affect the Group's business and believe that they will be substantially the same for the second half of the year as the current risks as identified in the 2016 Annual Report. These can be broken down into risks that are within the management's influence and risks that are outside it.
Risks that are within management's influence include areas such as the expansion of the business, prolonged periods of under-performance, loss of key personnel, human error, poor communication and service leading to reputational damage and fraud.
Risks outside the management's influence include falling markets, terrorism, a deteriorating UK economy, investment industry price competition and hostile takeovers.
Management monitor all risks to the business, they record how each risk is mitigated and have warning flags to identify increased risk levels. Management recognise the importance of risk management and view it as an integral part of the management process which is tied into the business model and is described further in the Risk management and internal control section on page 26 of the 2016 Annual Report and Note 2 ""Financial risk management"" on page 58 of the 2016 Annual Report.
14. Directors' responsibilities
The Directors confirm that this condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that the Half Yearly Report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.
By Order of the Board
John Ions Vinay Abrol
Chief Executive Chief Operating Officer and Chief Financial Officer
14 November 2016
Forward Looking Statements
This report contains certain forward-looking statements with respect to the financial condition, results of operations and businesses and plans of the Group. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that have not yet occurred. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this announcement should be construed as a profit forecast.
END
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRBDBCSBBGLS
(END) Dow Jones Newswires
November 15, 2016 02:00 ET (07:00 GMT)
1 Year Liontrust Asset Management Chart |
1 Month Liontrust Asset Management Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
