Liontrust sees 92 per cent profit plunge
FUND manager Liontrust Asset Management reported a 92 per cent slump in pre-tax profits in the first half as it continued to restructure following the loss of key fund managers.
The slide to just £0.5m in the six months to September 30 compared with more than £6m in profits during the same period last year.
Funds under management crashed to £1.3bn compared to £3.9bn the year before. This fuelled a £1.6m drop in performance fees to £2.2m during the same period.
Liontrust has been coping with the departure of star fund managers Jeremy Lang and William Pattisson, who ran most of its assets.
The move was blamed for a 25 per cent drop in pre-tax profit last year and also ended Liontrust’s talks with prospective merger partners.
Bernard Asher, outgoing non-executive chairman of Liontrust, said yesterday executive directors would face a salary freeze and will not receive a bonus following the drop in profits.
Chief executive Nigel Legge said the group was in the process of “rebuilding”.
“We have no debt and hold net cash and financial assets of over £20m,” he said.
“This gives us the resources to continue expanding and diversifying our fund management teams into new asset classes while maintaining our focus on having strong investment processes.”
He said the group planned to launch a number of funds over the next few months including for the fixed income and global equities teams.
Asher is to be replaced by former Gartmore managing director Adrian Collins from 1 January.
Broker Altium Securities said it was reducing its target price “pending positive news on fund flows”.