Interim Results - Six months to 30 September 2008

Embargoed until 0700 hours, Wednesday 12th November 2008

                         Stock Exchange Announcement

                        LIONTRUST ASSET MANAGEMENT PLC

           Interim results for the six months to 30 September 2008

Highlights

Liontrust Asset Management PLC ("Liontrust" or "the Group"), the independent
specialist equities fund management group, today announces its interim results
for the six months ended 30 September 2008 (the "Period").

Results and dividend

  - Profit before tax increased by 10% to £6.1 million (2007: £5.6million).

  - Performance fees of £3,894,000 were earned during the Period (2007: £367,000).

  - Basic earnings per share increased by 18% to 14.8 pence (2007: 12.5 pence).

  - Interim dividend maintained at 2.5 pence (2007: 2.5 pence).

Funds under management

  - Funds under management decreased to £3.9 billion (2007: £5.5 billion).

  - Funds now at £3.5 billion (as at 11 November 2008).


Commenting on these results, Nigel Legge, Chief Executive, said:

"Against a backdrop of an extraordinary operating environment, these results
show the business to be in relatively good shape when compared to other fund
management groups. Performance fee earnings have been a major contributor to
profits. The good performance of our European products, underpinned by a
robust investment process, is attracting a growing number of prospective
investors across Europe and the US."

"Our focus over the last thirteen years on investment process and performance,
stability in our fund management team, transparency in our reporting and a
strong balance sheet without debt are playing an important part in preserving
client confidence in this environment."

For further information please contact:

Liontrust Asset Management PLC   020 7412 1700
Nigel Legge                      www.liontrust.co.uk
Vinay Abrol
Simon Hildrey

Altium                           020 7484 4040
Ben Thorne
Sam Fuller

Smithfield                       020 7360 4900
Reg Hoare
Miranda Good



Chairman's Statement

Results

In what are unprecedented stock market conditions, we have had a good first
six months, as these results testify. They show an increase in both profits
and earnings per share compared with the same period last year, to which
performance fee income has been a major contributor. The second half will be
tougher as we start the period with significantly lower funds under management
as it is management fee income earned on funds under management that drives
our core revenues.

The importance of our financial metrics, which we have consistently published
since our flotation in 1999, is now coming to the fore. We have a strong
balance sheet with no debt and over the Period we had a cost to income ratio
of 64.1%. We have good relative performance across benchmarked portfolios and
excellent absolute performance in our hedge fund.

Profit before tax was 10% higher at £6.149 million (2007: £5.591 million),
basic earnings per share were 18% higher at 14.76 pence (2007: 12.51 pence)
and the interim dividend is maintained at 2.5 pence per share (2007: 2.5 pence
per share).

Performance

Performance fees of £3,894,000 were earned in the Period and these fees
generated an operating profit, after staff compensation, of approximately
£1,752,000. By comparison, the operating profit contribution from performance
fees in the six months to 30 September 2007 was £165,000. There are further
performance fees owing which, if out-performance is maintained, will fall due
for payment in the second half of the financial year ending 31 March 2009.

Relative performance of most of our funds against respective benchmarks in the
calendar year to date has been good, notwithstanding recent market volatility.
The European hedge fund is up 12.2% in the calendar year to 31 October 2008
and up 45.7% since launch on 6 December 2006.

Specific performance statistics are widely available from many sources,
including our website, www.liontrust.co.uk.

Funds under management

On 30 September 2008, our funds under management stood at £3.913 billion, 28%
lower than the level of £5.457 billion at the same time last year. The FTSE
All-Share Index fell by 25% over the same period. As at 11 November 2008,
funds under management stood at £3.549 billion.

Margins and fund flows

Annualised revenues for the Period as a percentage of average funds under
management were 0.67% (2007: 0.51%) while annualised profit before tax as a
percentage of average assets was 0.26% (2007: 0.20%).

Gross sales of our unit trusts and offshore funds totalled £235 million and
net redemptions were £73 million in the Period. We received £21 million of net
inflows in October 2008.

Net inflows of institutional assets amounting to £1 million have been invested
in the Period with net outflows of £79 million in transition.

Dividend policy

The current market conditions present new opportunities to the Group for the
use of its cash. The Board is reassessing the best means of adding value for
shareholders. As a result, the Board has decided to cease the payment of
special dividends from performance fee revenues when they are earned. The
Board will keep shareholders informed of any specific plans in due course.

Fund management teams

As at 11 November 2008, £226 million had been raised for the European process,
which is ahead of our expectations. Since inception, overall performance of
the various European portfolios has been strong and remained so during the
Period. We are therefore confident of raising more assets during the remainder
of the financial year.

Our UK fund management team, too, have produced good results (albeit highly
volatile ones along the way), hence our performance fee revenues.

Sales and marketing

We continue to promote our processes and funds to clients in the UK,
Continental Europe and the US, where there has been a healthy increase in the
number of professional firms with which we are in contact. We believe that our
thirteen year track record, highly detailed investment processes, the
performance of our portfolios, our healthy cash position and the excellent
record of continuity in our fund management teams are being appreciated for
their importance in these difficult market conditions and warmly welcomed by
our growing audience of professional investors.

Risks and uncertainties

The Disclosure and Transparency Rules of the Financial Services Authority
require the Group to disclose additional information, including a description
of the principal risks and uncertainties to the business for the remaining six
months of the financial year and details of any related party transactions.

The Group takes a cautious and pro-active approach to risk management. The key
risks to the Group's business remain as those disclosed in our 2008 Annual
Report, namely the risk of investment performance leading to customer loss,
fund manager departures, outsourcing and operational risk. The Group actively
reviews these risks and sees them continuing to be the key risks going
forward. Details of related party transactions can be found in note 9 below.

Approach

On 20 May 2008, Liontrust announced that it had received an approach that may
or may not lead to an offer being made for the Group. Since that date,
Liontrust has been in discussion with various parties and, although
discussions are continuing, there can be no certainty that an offer will be
made or as to the terms on which any offer might be made. A further
announcement will be made in due course.

Summary

The current environment presents us with great opportunities. We know we can
achieve a lot more in both product development and generating assets to manage
and this remains our focus.

We believe that our first half performance, particularly in this climate, has
been a good start to the year. We plan to build on this in the coming months.
The results for the second half will be heavily influenced by our lower funds
under management as a result of recent market falls, but by focusing on those
areas within our control I believe, we can make progress. I look forward to
reporting our full year results in June 2009.

Bernard H Asher
Chairman



Consolidated Income Statement
Six months to 30 September 2008

                                                             Six         Six      Year
                                                       months to   months to     ended
                                                       30-Sep-08   30-Sep-07 31-Mar-08
                                                     (unaudited) (unaudited) (audited)
                                           Notes           £'000       £'000     £'000
 
Continuing operations
 
Revenue                                                   15,844      14,223    40,997
Cost of sales                                              (106)        (56)     (155)
Gross profit                                              15,738      14,167    40,842
 
Realised gain on sale of investments                         143           -         -
Administrative expenses                      3          (10,176)     (9,140)  (25,401)
Operating profit                                           5,705       5,027    15,441
 
Interest receivable                                          464         564     1,114
Interest payable                                            (20)           -      (54)
 
Profit before tax                                          6,149       5,591    16,501
 
Taxation                                                 (1,731)     (1,856)   (5,428)
 
Profit for the period                                      4,418       3,735    11,073
 
Memo - Dividends paid                        6           (7,634)     (3,790)   (4,538)
 
                                                           Pence       Pence     Pence
 
Basic earnings per share                     5             14.76       12.51     37.04
Diluted earnings per share                   5             14.76       11.96     35.94



Consolidated Balance Sheet
As at 30 September 2008

                                               30-Sep-08   30-Sep-07  31-Mar-08
                                             (unaudited) (unaudited)  (audited)
                                       Notes       £'000       £'000      £'000
Assets
Non current assets
Property, plant and equipment                        162         139        180
Deferred tax assets                                  595         644        650
                                                     757         783        830
Current assets
Receivables                                       19,971      17,930     47,792
Financial assets                         8         6,213         512      8,445
Cash and cash equivalents                         11,961      17,918     20,809
                                                  38,145      36,360     77,046
Liabilities
Current liabilities
Borrowings                                             -           -    (2,885)
Payables                                        (19,138)    (21,297)   (52,049)
Accruals                                           (355)       (455)      (475)
                                                (19,493)    (21,752)   (55,409)
Net current assets                                18,652      14,608     21,637
 
Net assets                                        19,409      15,391     22,467
 
Shareholders' equity
Ordinary shares                                      337         337        337
Share premium                                      8,962       8,923      8,962
Capital redemption reserve                            15          15         15
Revaluation reserve                                  276           -        118
Retained earnings                                 21,991      18,319     25,207
Own shares held                                 (12,172)    (12,203)   (12,172)
 
Total equity                                      19,409      15,391     22,467



Consolidated Cash Flow Statement
Six months to 30 September 2008

                                                      Six         Six      Year
                                                months to   months to     ended
                                                30-Sep-08   30-Sep-07 31-Mar-08
                                              (unaudited) (unaudited) (audited)
                                                    £'000       £'000     £'000
 
Cash flows from operating activities
Cash inflow from operations                        20,943      16,301    35,026
Cash outflow from operations                     (15,748)    (11,554)  (21,678)
Cash (outflow)/inflow from changes in unit
trust receivables and payables                    (2,585)     (3,564)   (2,041)
Net cash generated from operations                  2,610       1,183    11,307
 
Interest received                                     464         564     1,114
Interest paid                                        (20)           -      (54)
Tax paid                                          (3,776)     (2,638)   (4,586)
Net cash from operating activities                  (722)       (891)     7,781
 
Cash flows from investing activities
Purchase of property and equipment                   (22)        (43)     (125)
Sale/(Purchase) of seeding investments              2,414           -   (7,610)
Net cash from investing activities                  2,392        (43)   (7,735)
 
Cash flows from financing activities
Net proceeds from issue of new shares                   -          16        55
Net cost of the cancellation of shares                  -        (94)      (94)
Sale of own shares                                      -         283       314
Borrowings:(Repaid)/Borrowed                      (2,884)           -     2,589
Dividends paid to shareholders                    (7,634)     (3,790)   (4,538)
Net cash used in financing activities            (10,518)     (3,585)   (1,674)
 
Net (decrease)/increase in cash and cash
equivalents                                       (8,848)     (4,519)   (1,628)
Opening cash and cash equivalents*                 20,809      22,437    22,437
Closing cash and cash equivalents                  11,961      17,918    20,809
 
* Cash and cash equivalents consists only of cash balances.


Consolidated Statement of Changes in Equity
Six months to 30 September 2008

                          Share   Share    Capital       Re- Retained Own shares   Total
                        capital premium redemption valuation earnings       held  Equity
                         £ '000  £ '000     £ '000    £ '000   £ '000     £ '000  £ '000
 
Balance at 1 April
2008 brought forward        337   8,962         15       118   25,207   (12,172)  22,467
 
Sale of shares by
Employee Benefits
Trust                         -       -          -         -        -          -       -
 
Profit for the period         -       -          -         -    4,418          -   4,418
 
Total recognised
income for the year           -       -          -         -    4,418          -   4,418
 
Dividends paid                -       -          -         -  (7,634)          - (7,634)
 
Gain on investments*          -       -          -       158        -          -     158
 
Issue of shares               -       -          -         -        -          -       -
 
Cancellation of shares        -       -          -         -        -          -       -
 
Equity share options
issued                        -       -          -         -        -          -       -
 
Balance at 30
September 2008              337   8,962         15       276   21,991   (12,172)  19,409
 
* In addition to the results in the above Income Statement, which arise wholly from continuing 
activities, the Group had a gain of £158,000 relating to financial assets held as available 
for sale. The gain is unrealised and carried through equity.


Consolidated Statement of Changes in Equity
Six months to 30 September 2007

                        Share   Share    Capital       Re- Retained Own shares   Total
                      capital premium redemption valuation earnings       held  Equity
                       £ '000  £ '000     £ '000    £ '000   £ '000     £ '000  £ '000
 
Balance at 1 April
2007 brought forward      337   8,907         15         -   18,174   (12,486)  14,947
 
Sale of shares by
Employee Benefits
Trust                       -       -          -         -        -        283     283
 
Profit for the
period                      -       -          -         -    3,735          -   3,735
 
Total recognised
income for the year         -       -          -         -    3,735          -   3,735
 
Dividends paid              -       -          -         -  (3,790)          - (3,790)
 
Issue of shares*            -      16          -         -        -          -      16
 
Cancellation of
shares**                    -       -          -         -     (94)          -    (94)
 
Equity share options
issued                      -       -          -         -      294          -     294
 
Balance at 30
September 2007            337   8,923         15         -   18,319   (12,203)  15,391
 
* During the period 5,802 Ordinary Shares of 1 pence were issued; as the table above 
is disclosed in £'000, no amount is disclosed in additions to share capital.
 
** During the period 23,754 Ordinary Shares of 1 pence were cancelled; as the table above 
is disclosed in £'000, no amount is disclosed in deductions from share capital.


Consolidated Statement of Changes in Equity
Year to 31 March 2008

                         Share   Share    Capital       Re- Retained Own shares   Total
                       capital premium redemption valuation earnings       held  Equity
                        £ '000  £ '000     £ '000    £ '000   £ '000     £ '000  £ '000
 
Balance at 1 April
2007 brought forward       337   8,907         15         -   18,174   (12,486)  14,947
 
Sale of shares by
Employee Benefits
Trust                        -       -          -         -        -        314     314
 
Profit for the period        -       -          -         -   11,073          -  11,073
 
Total recognised
income for the year          -       -          -         -   11,073          -  11,073
 
Dividends paid               -       -          -         -  (4,538)          - (4,538)
 
Gain on investments*         -       -          -       118        -          -     118
 
Issue of shares**            -      55          -         -        -          -      55
 
Cancellation of
shares***                    -       -          -         -     (94)          -    (94)
 
Equity share
options
issued                       -       -          -         -      592          -     592
 
Balance at 31 March
2008                       337   8,962         15       118   25,207   (12,172)  22,467
 
* In addition to the results in the above Income Statement, which arise wholly from continuing
activities, the Group had a gain of £118,000 relating to financial assets held as available 
for sale. The gain is unrealised and carried through equity.
 
** During the year 20,547 Ordinary Shares of 1 pence were issued; as the table above is 
disclosed in £'000, no amount is disclosed in additions to share capital.
 
*** During the year 23,754 Ordinary Shares of 1 pence were cancelled; as the table above 
is disclosed in £'000, no amount is disclosed in deductions from share capital or in the 
Capital redemption reserve.


Notes to the Financial Statements

1 Principal Accounting policies

a) Basis of preparation

This interim report is unaudited and does not constitute statutory accounts
within the meaning of s240 of the Companies Act 1985. The financial
information for the half years ended 30 September 2008 and 2007 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 2008, which were prepared in accordance with International Financial
Reporting Standards, as endorsed by the European Union ('IFRS'), and with
those parts of the Companies Act 1985 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
s237(2) or s237(3) of the Companies Act 1985.

The financial statements have been prepared in accordance with the Disclosure
and Transparency Rules of the Financial Services Authority ("DTR") and with
IAS 34 'Interim Financial Reporting'.

The accounting policies applied in these interim accounts are consistent with
those applied in the Group's most recent annual accounts.

At the date of authorisation of these financial statements, the following
Standards and Interpretations were in issue but either not endorsed not yet
effective:

IFRS 3 (amended) - Business combinations

IFRS 8 - Operating segments

IAS 1 (amended) - Presentation of financial statements

IAS 27 (amended) - Consolidation and separate financial statements

IFRIC 16 - Hedges of net investment in a foreign operation

In addition, a number of other existing Standards and Interpretations have
also been revised to ensure consistency with the amended Standards listed
above. The directors anticipate the adoption of these Standards and
Interpretations in future periods will have no material impact on the
financial statements of the Group.

2 Segmental reporting

The Group's operations consist only of investment management in the UK. As
such, no segmental analysis is presented.

3 Administration expenses

                                         Six         Six      Year
                                   months to   months to     ended
                                   30-Sep-08   30-Sep-07 31-Mar-08
                                 (unaudited) (unaudited) (audited)
                                       £'000       £'000     £'000
Staff costs
- Director and employee costs          7,332       6,698    20,217
- Share option expense                    65         294       592
- Share incentive plan expense            73           -       124
- Share option NI liability                8          36        72
- Holiday pay accrual adjustment           -        (87)         -
                                       7,478       6,941    21,005
Other administration expenses          2,698       2,199     4,396
                                      10,176       9,140    25,401
4 Taxation

The interim tax charge has been calculated at the estimated full year
effective corporation tax rate of 28% (2007: 30%). The share option expense
has not been taken into account in determining profit before tax as this is
not an allowable expense for taxation. As Liontrust European Investment
Services Limited is 51% owned by the Group it falls below the 75% threshold
required by HM Revenue & Customs in order to qualify for group tax relief. We
have adjusted our interim tax charge accordingly.

5 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 2008 was 29,937,673 (30 September 2007: 29,863,234, 31 March 2007:
29,895,377). 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 are 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 2008. The adjusted weighted average number
of Ordinary Shares so calculated for the period was 29,937,673 (30 September
2007: 31,228,330, 31 March 2008: 30,809,065). This is reconciled to the actual
weighted number of Ordinary Shares as follows:

                                                30-Sep-08  30-Sep-07  31-Mar-08
                                                   number     number     number
 
Weighted average number of Ordinary Shares     29,937,673 29,863,234 29,895,377
 
Weighted average number of dilutive Ordinary
shares under option:
 
- to Savings-Related Share Option Scheme                -      9,072      5,530
 
- to the Liontrust Enterprise Management
Incentive Scheme
                                                        -  1,356,024    908,158
 
Adjusted weighted average number of Ordinary   29,937,673 31,228,330 30,809,065
Shares

6 Dividends

The directors declare an interim dividend in respect of the current period of
2.5 pence per share (2007: 2.5 pence), which will be paid on 17 December 2008
to all shareholders on the register as at 21 November 2008. The shares will go
ex-dividend on 19 November 2008.

7 Own Shares

The trustee of the Liontrust Asset Management Employee Trust notified the
Company that, under the Liontrust Enterprise Management Incentive Scheme (the
"Scheme"), on 12 July 2008 the options over 2,346,578 ordinary shares in the
Company granted by the trustee on 12 July 2005 to employees, including the
executive directors, lapsed as a result of not satisfying the performance
conditions attaching to the grant of options.

8 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 and shares in sub-funds of the Liontrust
Guernsey Fund Limited (a Guernsey domiciled Open ended investment company)
held in the manager's box and are valued at bid price.

Assets held as available for sale:

The Group's assets held as available for sale represent shares in the
Liontrust European Long/Short Fund and Liontrust MMVIII Fund (both sub-funds
of Liontrust Alternative Funds PCC Limited), and Liontrust Pan-European Fund
(a sub-fund of Liontrust International (Luxembourg) SICAV) and are valued at
mid price.

9 Related Party Transactions

During the six months to 30 September 2008 the Group received fees from unit
trusts under management of £10,942,000 (2007: £13,714,000). Transactions with
these unit trusts comprised creations of £146,449,000 (2007: £77,939,000) and
liquidations of £258,998,000 (2006: £189,307,000). 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 2008
the Group owed the unit trusts £6,135,000 (2007: £1,682,000) in respect of
unit trust creations and was owed £1,879,000 (2007: £9,534,000) in respect of
unit trust cancellations and fees.

10 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 interim management 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

Nigel R. Legge                                  Vinay K. Abrol
Chief Executive                Chief Operating Officer and Chief Financial Officer
12 November 2008

Forward Looking Statements

This announcement 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. As a result, the Group's actual
future financial condition, results of operations and business and plans may
differ materially from the plans, goals and expectations expressed or implied
by these forward-looking statements. Liontrust undertakes no obligation
publicly to update or revise forward-looking statements, except as may be
required by applicable law and regulation (including the Listing Rules of the
Financial Services Authority). Nothing in this announcement should be
construed as a profit forecast or be relied upon as a guide to future
performance

Other information

The release, publication, transmission or distribution of this announcement
in, into or from jurisdictions other than the United Kingdom may be restricted
by law and therefore persons in such jurisdictions into which this
announcement is released, published, transmitted or distributed should inform
themselves about and observe such restrictions. Any failure to comply with the
restrictions may constitute a violation of the securities laws of any such
jurisdiction.