Interim Results

Liontrust Asset Management PLC                         

                                                                               

          Interim Statement for the six months to 30th September 2004          

 

Core operating profits rose by 39% to £4.93 million, compared with £3.54
million for the same period a year ago. Unlike last year no performance related
fees have been earned during the period so the core and total operating profits
are the same.

The average level of funds under management over the six month period was £5.05
billion compared to £3.48 billion for the six months to September 2003. On 30th
September 2004 our funds under management stood at £5.023 billion and £4.97
billion on 28th October 2004. There are currently no funds in transition.

The First Income unit trust, based on our Value Dynamic investment process, has
grown to over £950 million from £500 million this time last year. We have lost
four institutional accounts during the period from 1st April 2004 to 28th
October 2004 worth £277 million. Net sales of proprietary unit trusts during
this period were £137 million. 

Core and total earnings per share are the same at 11.30p. Core earnings per
share are 16% up on a year ago and 42% more on an equivalent basis as last year
which benefited from a lower tax charge.

Once again we have kept a tight control on our costs and as a result the cost:
income ratio on our core business has fallen to 63.7%  from 65.6% at the same
time last year. Total compensation costs as a percentage of pre-compensation
profit are targeted to remain around 55% for this full year.

Your board has declared an interim dividend of 2.0p per share compared with
1.5p a year ago. The dividend will be paid on 30th November to shareholders on
the register on 12th November with an ex-dividend date of 10th November.

Relative performance of our four investment processes has continued to vary.
The Small Cap and Value investment processes have outperformed their benchmarks
during 2004 while the Large Cap and Growth investment processes have
underperformed their benchmarks. All institutional mandates with performance
fee structures are based on either the Large Cap or Growth investment
processes. 

Our average headcount during the period was 37. Recent experience continues to
support our view that the combination of a simple business model, built around
clearly articulated investment processes, with a few able and motivated people
is a powerful formula for adding value.

We continue to explore opportunities for profitable growth and remain
enthusiastic about our prospects.

 

Bernard Asher

Chairman

28th October 2004

 

Enquiries:

 

NigelLegge, Chief Executive,

Liontrust Asset Management PLC

020 7412 1700

 

Richard Locke,

Cazenove& Co. Ltd  

020 7155 4706

 

LIONTRUST ASSET MANAGEMENT PLC

 

Consolidated Profit and Loss Account

 

Six months to 30th September 2004

 

                                            Six           Six      Twelve
                                                                   months
                                         months        months            
                                                                       to
                                     to 30.9.04    to 30.9.03     31.3.04
                                                                         
                                    (unaudited)   (unaudited)   (audited)
                                                                         
                               Note       £'000         £'000       £'000
                                                                         
                                                                         
                                                                         
Turnover (Gross profit)                  13,592        10,948      24,485
                                                                         
Staff costs                             (6,471)       (4,966)    (11,363)
                                                                         
Exceptional staff costs           2           -         (272)       (189)
                                                                         
Total staff costs                       (6,471)       (5,238)    (11,552)
                                                                         
Other operating charges                 (2,188)       (2,150)     (4,327)
                                                                         
Operating profit                          4,933         3,560       8,606
                                                                         
Interest receivable                         397           200         464
                                                                         
Profit on ordinary activities             5,330         3,760       9,070
before taxation                                                          
                                                                         
Tax on profit on ordinary         3     (1,589)         (564)     (1,536)
activities                                                               
                                                                         
Profit on ordinary activities             3,741         3,196       7,534
after taxation                                                           
                                                                         
Dividends paid and proposed               (662)         (685)     (2,890)
                                                                         
Profit for the period transferred         3,079         2,511       4,644
to reserves                                                              
                                                                         
                                                                         
                                                                         
                                          Pence         Pence       Pence
                                                                         
Basic earnings per share          4       11.30          9.70       22.98
                                                                         
Basic earnings per share          4       11.30         10.40       23.39
(adjusted)                                                               
                                                                         
Basic earnings per share          4       11.30          9.66       22.65
(core)                                                                   
                                                                         
Diluted earnings per share        4       11.16          9.40       22.29
                                                                         
Diluted earnings per share        4       11.16         10.08       22.68
(adjusted)                                                               
                                                                         
Diluted earnings per share        4       11.16          9.35       21.97
(core)                                                                   
                                                                         

 

 

                                     Six           Six       Twelve
                                                                   
                                  months        months       months
                                                                   
                              to 30.9.04    to 30.9.03   to 31.3.04
                                                                   
                             (unaudited)   (unaudited)    (audited)
                                                                   
                                   £'000         £'000        £'000
                                                                   
                                                                   
                                                                   
Core earnings                      4,933         3,544   8,452     
                                                                   
Performance related earnings   -             288           343     
                                               
                                  4,933       3,382    8,795   
                              
Exceptional staff costs        -             (272)         (189)     
                                                                   
Operating profit               4,933         3,560         8,606     
                                                                   


LIONTRUST ASSET MANAGEMENT PLC

                                                                               

Consolidated Balance Sheet

 

At 30th September 2004

 

                                             30.9.04       30.9.03      31.3.04
                                                                               
                                         (unaudited)   (unaudited)    (audited)
                                                                               
                                                        (restated)   (restated)
                                                                               
                                               £'000         £'000        £'000
                                                                               
                                                                               
                                                                               
Fixed assets                                     261           329          299
                                                                               
Current assets                                                                 
                                                                               
  Short term investments                         208           183          197
                                                                               
  Debtors                                     15,223        15,827       23,615
                                                                               
  Cash at bank and in hand                    17,465        11,595       15,813
                                                                               
                                              32,896        27,605       39,625
                                                                               
                                                                               
                                                                               
Creditors - amounts falling due within                                         
                                                                               
one year                                    (20,682)      (19,218)     (30,529)
                                                                               
Net current assets                            12,214         8,387        9,096
                                                                               
Total assets less current liabilities         12,475         8,716        9,395
                                                                               
                                                                               
                                                                               
Capital and reserves                                                           
                                                                               
Called up ordinary share capital                 350           349          350
                                                                               
Share premium account                          8,630         8,373        8,630
                                                                               
Profit and loss account                       10,162         5,028        7,082
                                                                               
Own shares held by the Liontrust Asset                                         
Management Employee Trust                                                      
                                             (6,667)       (5,034)      (6,667)
                                                                               
Shareholders' funds (all equity               12,475         8,716        9,395
interests)                                                                     
                                                                               

 


LIONTRUST ASSET MANAGEMENT PLC

                                                                               

Consolidated Cash Flow Statement

 

Six months to 30th September 2004

 

                                                   Six           Six      Twelve
                                                                                
                                                months        months      months
                                                                                
                                            to 30.9.04    to 30.9.03          to
                                                                         31.3.04
                                           (unaudited)   (unaudited)            
                                                                       (audited)
                                                                                
                                                 £'000         £'000       £'000
                                                                                
                                                                                
                                                                                
Operating profit                                 4,933         3,560       8,606
                                                                                
Exceptional staff costs                              -         (314)       (314)
                                                                                
Depreciation charges                                55            49         104
                                                                                
(Increase) in short term investments              (11)           (9)        (23)
                                                                                
Decrease in debtors                              8,392        16,179       8,391
                                                                                
(Decrease) in creditors                        (9,090)      (12,859)     (3,493)
                                                                                
Net cash inflow from operating activities        4,279         6,606      13,271
                                                                                
                                                                                
                                                                                
Net cash inflow from operating activities        4,279         6,606      13,271
                                                                                
Returns on investment and servicing of finance     397           200         464
                                                                                
Taxation                                         (773)       (1,329)     (2,066)
                                                                                
Capital expenditure and financial                 (17)       (1,672)     (3,330)
investment                                                                      
                                                                                
Equity dividends paid                          (2,234)       (3,799)     (4,294)
                                                                                
                                                 1,652             6       4,045
                                                                                
Financing                                            -         1,674       1,853
                                                                                
Increase in cash                                 1,652         1,680       5,898
                                                                                

 


LIONTRUST ASSET MANAGEMENT PLC

                                                                               

Notes to the Financial Statements

 

Basis of preparation and restatement of comparatives

 

The unaudited interim financial information, which has been approved by the
Board of Directors, has been prepared on the basis of the accounting policies
set out in the Group's accounts for the year ended 31st March 2004, except as
set out below. The financial information for the year ended 31st March 2004 has
been abridged from the financial statements which received an unqualified audit
report and which have been filed with the Registrar of Companies.

 

UITF Abstract 38, Accounting for ESOP trusts, came into effect for accounting
periods ending on or after 22nd June 2004, superceding UITF Abstract 13. As a
consequence, the value of shares in Liontrust Asset Management PLC held by the
Liontrust Asset Management Employee Trust is now presented as a deduction in
calculating Shareholders' Funds as opposed to an asset. Comparative figures
have been restated appropriately.

 

Exceptional staff costs

 

Exceptional staff costs were accrued in respect of the potential employer's
National Insurance liability on unapproved share options issued on the
Company's flotation. The final tranche of these options were exercised in the
year ended 31st March 2004.

 

Exceptional staff costs:

 

                               30.9.04   30.9.03   31.3.04
                                                          
                                 £'000     £'000     £'000
                                                          
                                                          
                                                          
Cost for National Insurance on                            
                                                          
unapproved share options             -       272       189
                                                          
                                    -        272       189
                                                          

 

Taxation

 

The interim tax charge has been calculated at the estimated full year effective
corporation tax rate of 30% (2003: 15%).  The effective tax charge for 2003
took into account relief arising from the gains on exercised share options.

 


LIONTRUST ASSET MANAGEMENT PLC

 

Earnings per share

 

The calculation of basic earnings per share is based on profit after taxation
and the weighted number of ordinary shares in issue for each period, excluding
the shares held by the Liontrust Asset Management Employee Trust. The weighted
average number of ordinary shares was 33,099,510 for the six months ended 30th
September 2004, 32,948,794 for the six months ended 30th September 2003 and
32,781,687 for the year ended 31st March 2004.

 

In accordance with the methodology set out in the Annual Report & Accounts we
have stated two further measures of basic earnings per share. The adjusted
figure is calculated after removing the exceptional item and associated tax
charge/ credit. The core figure is calculated after removing the exceptional
item, the performance related fees and costs and related tax charges.

 

The calculation of diluted earnings per share is based on profit after taxation
and the weighted average number of ordinary shares in issue for each period, as
above, adjusted for the effect of options to subscribe for shares that were in
existence at 30th September 2004. The adjusted weighted average number of
ordinary shares so calculated was 33,510,931 for the six months ended 30th
September 2004, 34,014,808 for the six months ended 30th September 2003 and
33,797,605 for the year ended 31st March 2004.

 

5.        Dividends         

 

The directors propose to pay an interim dividend in respect of the current
period of 2.0 pence per share (2003: 1.5 pence) payable on 30th November 2004
to shareholders on the register at the close of business on 12th November 2004.

 

This preliminary announcement constitutes non-statutory accounts under section
240 of the Companies Act 1985. The results for the six months ended 30th
September 2004 are unaudited. As stated in Note 1 above, the financial
information for the year ended 31st March 2004 has been abridged from the
financial statements which received an unqualified audit report and which has
been filed with the Registrar of Companies and did not contain a statement
under section 237(2) or (3) of the Companies Act, 1985.