Final Results

Liontrust Asset Management PLC
21 May 2003

Embargoed until 0700 hours, Wednesday 21st May 2003



                          STOCK EXCHANGE ANNOUNCEMENT

                         LIONTRUST ASSET MANAGEMENT PLC

                     PRELIMINARY RESULTS FOR THE YEAR ENDED

                                31ST MARCH 2003



           Significant increases in funds under management, profits,
                       earnings per share and dividends.


Liontrust Asset Management PLC ('Liontrust' or 'the Group'), the independent
specialist UK equities fund management group, today announces its preliminary
results for the year ended 31st March 2003. The results are the Group's fourth
since its flotation on the main market of the London Stock Exchange in July
1999.



Highlights are as follows:





  •   45% growth in funds under management, which now exceed £3 billion.
 

  •   £1.1 billion new institutional business won during year; £300 million
      net unit trust sales.



  •   32% growth in core operating profits before tax to £4.254 million.


  •   56% growth in total profits before tax (including performance related
      earnings) to £8.585 million.



  •   36% growth in core earnings per share to 10.20 pence.


  •   64% growth in total earnings per share to 18.86 pence.



  •   63% increase in total dividend proposed: 3.0 pence per share core final
      dividend (core total for year 4.0 pence) and 8.25 pence per share 
      performance related dividend. Total dividend for the year 12.25 pence per 
      share against last year's total of 7.5 pence per share.


Commenting on the results, Nigel Legge, Joint Chief Executive, said:

'Our funds under management growth of 45% is put into perspective when
considering a fall in the FTSE All-Share Index of 32%. As importantly, margins
on funds under management were maintained.

The cost: income ratio has improved and profits are up. We are again rewarding
shareholders with appropriate increases in both core and performance related
dividends.

We remain convinced that we can continue to be successful by concentrating on
our specialised area. We are also determined to maintain a friendly but
challenging working environment, sensibly rewarding and incentivising all our
people.

We look forward to continuing our progress in the coming year.'



                                    - ENDS -



For further information please contact:


Liontrust Asset Management:

Nigel Legge, Joint Chief Executive                            Tel: [phone]



Cazenove & Co.:

Richard Locke, Director - Corporate Finance                   Tel: [phone]


Chairman's Statement

I am delighted to report another set of good results. Relative investment
performance has been good, new business gains have been strong and these,
coupled with the way we are organised, have allowed us to prosper in a difficult
year for the fund management industry.

Our income is generated in two main ways. We have recurring fees from funds
under management which make up our core earnings and we also have performance
fees which are only earned if our investment performance exceeds agreed
benchmarks. Performance fees do not apply to all our funds and are potentially
erratic, so we focus primarily on 'core' earnings when assessing our progress.
Our core profits in the year to 31st March 2003 were £4.3m, up 32% from £3.2m a
year ago. Our control over costs has led to a lower core cost: income ratio of
69.0% from 69.3% last year. Core earnings per share have increased by 36% to
10.20 pence from 7.52 pence last year and your board has decided to recommend a
final core dividend of 3.0 pence per share, payable on 15th July 2003 to
shareholders on the register at 20th June 2003. With the 1.0 pence interim
dividend already paid, the core dividend for the full year amounts to 4.0 pence
per share and is covered more than 2.5 times by core earnings per share. Last
year's total core dividend was 3.0 pence per share. An analysis of our operating
profit as between core and performance related earnings is set out in note 4.

This year's performance fees were ahead of those earned a year ago and so our
total profits before taxation were up, by 56% to £8.6m, from £5.5m last year.
Our total cost: income ratio has fallen to 63.8% from 64.8% last year. Total
earnings per share rose 64% to 18.86 pence per share from 11.52 pence per share
last year. Our dividend policy remains to grow our core dividend progressively
and, in normal circumstances, pay out performance related profits as special
dividends. This year, in addition to the core dividend, your board has decided
to recommend a special dividend of 8.25 pence per share funded from performance
fees, payable at the same time as the core final dividend making a total of
12.25 pence per share for the year compared with 7.5 pence per share last year.
Because performance fees are likely to fluctuate, these special dividends will
vary too: in some years we might not earn any performance related fees, in which
case no special dividend would be paid.

Our funds under management increased by 45% during the year despite the FTSE
All-Share index falling 32%. On 31st March 2003 funds under management stood at
£2.569 billion with a further £705 million in transition, that is funds that we
have won but that have not yet been transferred to us. At the same time last
year funds under management stood at £1.768 billion with £500 million in
transition. Since our year end funds under management have increased again and
on 19th May stood at £3.313 billion with £260 million in transition.

During the year we were awarded the management of an additional £1.1 billion of
institutional business, while net unit trust sales were £300 million. As well as
good relative investment performance across our four investment processes, our
marketing efforts played an important part in generating these strong new
business flows. As the recent rise in funds under management shows, the current
year has started well and invitations to pitch for new business continue.

Despite the generally difficult operating environment our prospects remain
excellent. Smaller fund management companies with specialist skills are
increasingly in demand and continue to find favour amongst professional
advisers. UK equities remain the largest proportion of UK based portfolios so
there continues to be scope for us to grow. Despite the falling UK equity market
we have still managed to grow funds under management significantly while
improving our core profitability. Now, more than ever, it is vital that we keep
our business model simple and concentrate on those things under our control,
namely our investment processes, our client relationships and our people.

We also need to deal with the recommendations on corporate governance in the
Higgs Report. Adoption of all the recommendations is likely to impose
unnecessary structures on a company of our size and add extra costs that are
hard to justify. In the coming year we will be reviewing our procedures in the
light of the Higgs recommendations and will make changes if we believe they will
either improve shareholder returns or reduce operating risks at an acceptable
cost.

Although the market in which we operate remains highly competitive, we remain
confident that our business model, culture, employee equity participation and
well-defined products will continue to give us a competitive advantage. We are
motivated by the challenges ahead and continue to see a bright future for the
company and all those associated with it.

Our staff have worked very hard this year and I thank them all enormously. It is
a pleasure to be part of a team of enthusiastic and professional people. The
retention and appropriate motivation of our employees are as vital to our
continued success as is maintaining our clients' confidence in what we are doing
for them. We are determined to preserve the stimulating and rewarding
environment that has played such an important part in our success so far.

Our Annual General Meeting will be held in the Beaufort Room at The Savoy Hotel,
Strand, London WC2R 0EU at 11.00am Wednesday 9th July 2003 and I hope many of
our shareholders will be with us then.


Ellen Winser
Chairman
20th May 2003




                  Unaudited Consolidated Profit and Loss account
                        for the Year Ended 31st March 2003

                                                                  Year ended                Year ended
                                                             31st March 2003           31st March 2002


                                                  Notes                £'000                     £'000
Turnover (Gross Profit)                                               22,402                    15,191
Staff costs                                                         (10,390)                   (6,803)
Exceptional staff costs                                                  121                     (244)
Total staff costs                                                   (10,269)                   (7,047)
Total operating charges                                              (3,893)                   (3,041)
Operating Profit                                                       8,240                     5,103
Interest receivable                                                      345                       404
Profit on ordinary activities before taxation                          8,585                     5,507
Tax  on profit on ordinary activities                                (2,506)                   (1,700)
Profit on ordinary activities after taxation                           6,079                     3,807
Dividends paid and proposed                           3              (3,961)                   (2,494)
Profit for the financial period transferred to reserves                2,118                     1,313


                                                                       Pence                    Pence
Basic earnings per share                             2                 18.86                    11.52
Basic earnings per share (adjusted)                  2                 18.59                    12.03
Basic earnings per share (core)                      2                 10.20                     7.52

Diluted earnings per share                           2                 18.16                    11.10
Diluted earnings per share (adjusted)                2                 17.91                    11.60
Diluted earnings per share (core)                    2                  9.82                     7.25



The Group had no gains or losses in the year other than the results in the above
profit and loss account, which arise wholly from continuing activities.


Unaudited Consolidated Balance Sheet
as at 31st March 2003


                                                      31st March 2003               31st March 2002

                                                       £'000         £'000           £'000         £'000
Fixed assets
Tangible assets                                                        286                           310
Own shares held by the Liontrust Asset
Management Employee Trust
                                                                     3,454                             -
                                                                     3,740                           310
Current assets
Short-term investments                                   174                           114
Debtors                                               32,006                        14,939
Cash at bank and in hand                               9,915                         9,560


                                                      42,095                        24,613


Creditors: (amounts falling due within one year)    (36,270)                      (17,781)
Net current assets                                                   5,825                         6,832
Total assets less current liabilities                                9,565                         7,142
Capital and reserves
Called up share capital                                                335                           333
Share premium account                                                2,777                         2,098
Profit and loss account                                              6,453                         4,711


Shareholders' funds (all equity                                      9,565                         7,142
interest)




Consolidated Cash Flow Statement

for the Year Ended 31st March 2003



Reconciliation of operating profit to net cash inflow from operating activities


                                                                Year ended                   Year ended
                                                           31st March 2003              31st March 2002
                                                                     £'000                        £'000

Operating profit                                                     8,240                        5,103
Exceptional staff costs                                              (165)                          244
Depreciation charges                                                   104                          104
(Increase) in short term                                              (60)                         (53)
investments
(Increase) in debtors                                             (17,067)                      (8,316)
Increase in creditors                                               16,692                        2,671

Net cash inflow/ (outflow) from operating                            7,744                        (247)
activities



Cash Flow Statement
                                                                     £'000                        £'000


Net cash inflow/ (outflow) from operating                            7,744                        (247)
activities
Returns on investment and servicing of finance                         345                          404
Taxation                                                           (1,854)                      (2,352)
Capital expenditure and financial investment                       (3,534)                         (98)
Equity dividends paid                                              (2,651)                        (331)

                                                                        50                      (2,624)
Financing                                                              305                          559

Increase/ (decrease) in cash                                           355                      (2,065)




Notes to the Financial Statements

1.        Accounting policies



The accounting policies are consistent with those set out in the Group's last
audited accounts.


2.        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 year was 32,237,093 (2002:
33,057,365). This figure has fallen as 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.

Basic earnings per share (adjusted) are calculated after removing the
exceptional items and associated tax credit. Basic earnings per share (core) are
calculated after removing the exceptional items, the performance related fees
and costs and related tax charges.

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 at 31st
March 2003. The adjusted weighted average number of Ordinary Shares so
calculated for the year was 33,475,251 (2002: 34,303,129)


3.        Proposed dividend

The Board will propose a final dividend of 11.25 pence per share, payable on
15th July 2003 to all shareholders on the register at 20th June 2003. This
comprises a core dividend of 3.0 pence and a special performance dividend of
8.25 pence.


                                                       Year                        Year
                                                      Ended                       Ended
                                            31st March 2003             31st March 2002
                                     Pence per        £'000      Pence per        £'000
                                         share                       share

Interim dividend paid (core)               1.0          323            0.5          166
Final dividend proposed (core)             3.0          970            2.5          831
Total core dividend                        4.0        1,293            3.0          997
Special dividend proposed                 8.25        2,668            4.5        1,497

Total dividend                           12.25        3,961            7.5        2,494






4.        Analysis of profit for the year

The table below show the split in revenues between core and performance related
earnings:


                       Core     Performance          Total           Core       Performance         Total
                   earnings         related           31st       earnings           related          31st
                                                     March                                          March
                                                      2003                                           2002
                      £'000           £'000          £'000          £'000             £'000         £'000


Turnover             13,714           8,688         22,402         10,454             4,737        15,191

Staff
compensation        (5,567)         (4,823)       (10,390)        (4,198)           (2,605)       (6,803)

Other
operating costs     (3,893)               -        (3,893)        (3,041)                 -       (3,041)


                      4,254           3,865          8,119          3,215             2,132         5,347


Exceptional
costs                                                  121                                          (244)

Operating
Profit                                               8,240                                          5,103

Interest                                               345                                            404

Profit before
tax                                                  8,585                                          5,507


This preliminary announcement constitutes non-statutory accounts under section
240 of the Companies Act 1985. The results for the year ended 31st March 2003
are unaudited. The results for the year to 31st March 2002 have been extracted
from the   Group's statutory accounts for that period, which have been filed
with the Registrar of Companies, the audit report on which was not qualified and
did not contain a statement under section 237(2) or (3) of the Companies Act
1985.


                      This information is provided by RNS
            The company news service from the London Stock Exchange