Embargoed until 0700 hours, Thursday 19 June 2014
FULL YEAR RESULTS FOR THE YEAR ENDED 31 MARCH 2014
Liontrust Asset Management Plc ("Liontrust", the "Company", or the "Group"), the independent fund management group, today announces its results for the year ended 31 March 2014.
Results:
· Revenues up 39% compared to the same period last year
· Adjusted profit before tax of £8.4 million (2013: £3.8 million), an increase of 122%
· Adjusted diluted earnings per share of 15.2 pence per share (2013: 7.3 pence per share), an increase of 110%
· Profit before tax of £3.7 million (2013: Loss of £3.9 million), includes costs of £4.7 million (2013: £7.7 million) relating to the amortisation of the related intangible asset and other non-cash and non-recurring costs (see note 4 below)
Dividend:
· Second Interim dividend per share of 2.0 pence (2013: 1.0 pence) brings the total dividend per share for the financial year ending 31 March 2014 to 3.0 pence (2013: 1.0 pence), an increase of 200%
Assets under management:
· On 31 March 2014, assets under management were £3.6 billion (2013: £3.0 billion), an increase of 19%
Flows:
· Net inflows for the year to 31 March 2014 of £381 million (2013: £514 million)
Commenting on the results, John Ions, Chief Executive, said:
"It has been a very successful year for Liontrust. Among the highlights are assets under management increasing by 19% to £3.6 billion, a further four quarters of net inflows, adjusted profit before tax rising 122% to £8.4 million, adjusted operating margin increasing by 51% to 30%, net cash growing 55% to £12 million and revenues increasing 39%.
"This success has led to Liontrust returning to the FTSE All Share on 23 June and has enabled the Company to declare a second interim dividend of 2.0 pence per share and a total for the financial year of 3.0 pence per share.
"A key contributor to the growth of the business has been our continued excellent long-term performance across the fund management teams. The strength of our UK equity proposition is particularly impressive. Liontrust Special Situations Fund, for example, is ranked 4th out of 194 funds in the IMA UK All Companies sector since launch (10 November 2005) to 31 May 2014. Liontrust Macro Equity Income Fund is ranked 3rd out of 48 funds in the IMA UK Equity Income sector since launch (31 October 2003) to the same date (Source: Financial Express, total return, bid-to-bid retail class).
"Two other important drivers for a fund management company are distribution and brand awareness. We have continued to broaden our client base and raise our profile over the past year, as shown by Standard Life choosing Liontrust to be one of the key fund management groups they are promoting through their account managers. Our entry into multi-asset/multi-manager through the acquisition of North Investment Partners Limited enables us to offer solutions to the wider adviser market and access one of the fastest growing asset classes.
"We will benefit as well from the tailwinds pushing the fund management sector as a whole. One of the most prominent is the fact that the ageing population is having to take more responsibility for their pre and post-retirement investment planning. This opportunity was enhanced still further with the announcement in the Budget that the obligation to buy an annuity will be removed. We are well positioned to take advantage of this with our strong range of equity income funds, our multi-asset/multi-manager proposition and our expanding sales in the retail market.
"We can look forward with great confidence given the opportunities I have outlined here and the success we have had over the past four years in building the Company. We have six good quality fund management teams, distinct and rigorous investment processes, a client focused business and a growing profile."
For further information please contact:
Liontrust Asset Management 020 7412 1700
John Ions, Vinay Abrol www.liontrust.co.uk
Simon Hildrey - Head of Marketing & Communications
Numis Securities Limited 020 7260 1000
Charles Farquhar, Andrew Holloway
Chairman's Statement
Introduction
I am delighted to report a year of significant growth and development for Liontrust and the fact we have once again met key strategic objectives of delivering outperformance, effective distribution and a growth in profitability.
We continue to deliver excellent long-term fund performance, with six of our actively managed UK Retail Funds, for example, in the first quartile of their respective IMA sectors since launch or since fund manager inception to 31 March 2014.
We have expanded our fund management expertise through the acquisition of North Investment Partners Limited in October 2013, which has brought our number of fund management teams to six and enabled us to move into the strategically important multi-asset/multi-manager space. We believe demand for multi-asset and multi-manager will continue to grow from financial advisers and private investors, especially among the post-retirement market following the government's recently announced annuity reforms. These pension changes could lead to fund managers attracting billions of pounds in extra flows every year.
Positive awareness about Liontrust and our funds among financial intermediaries has continued to grow. This is demonstrated by another four quarters of net inflows of £381 million in the financial year, which contributed to our near 20% increase in assets under management to £3.6 billion, and our ability to attract nearly 200 professional advisers to our September 2013 Income Roadshow and another 200 to our Annual Investment Conference in January this year.
In spite of this growth, Liontrust, like all other fund management companies, is not immune to our economic and political environment. The results of the European elections were recently announced and UKIP gave all the main UK political parties a bloody nose. Our nearest European neighbour - France - has been flirting with a toxic mixture of socialism and introspective legislation to protect its economy from the real world. With our General Election less than 12 months away, it is to be hoped that the economic policies of France, which have resulted in unemployment rates of 10% of the overall population and 25% among the under 25s, will guide the UK voters' hand. After all, no economy has ever taxed its way to growth.
It has been a good year for your company and I would like to thank all our staff for their efforts and, while the fund management industry is an ever changing landscape, I hope and expect to be able to report another successful year in 2015.
Results
Adjusted profit before tax was £8.352 million (2013: £3.766 million). Adjusted profit (or loss) before tax is disclosed in order to give shareholders an indication of the profitability of the Group excluding non-cash (depreciation, intangible asset amortisation and share incentivisation related) expenses and non-recurring (acquisition, cost reduction, restructuring, share incentivisation and severance compensation related) expenses ("Adjustments"), see note 4 below for a reconciliation of adjusted profit (or loss) before tax.
Profit before tax of £3.678 million (2013: Loss of £3.935 million) includes a loss of £4.674 million (2013: £7.701 million) of Adjustments.
Dividend
The success in fund performance and distribution has resulted in an increase in revenues of 39% and a more than doubling of our adjusted profit before tax to £8.4 million. This has enabled the Board to declare a second interim dividend of 2.0 pence per share (2013: 1.0 pence) which will be payable on 30 July 2014 to shareholders who are on the register as at 4 July 2014, the shares going ex-dividend on 2 July 2014. The total dividend for the financial year ending 31 March 2014 is 3.0 pence per share (2013: 1.0 pence per share).
Directorate changes
Glyn Hirsch will be stepping down from the board at the Company's Annual General Meeting in September 2014. He now finds that he is unable to give us the time required to fulfil his role as a Non-executive Director of the Company and I am sad to see him go. I have enjoyed working with him and his tireless energy and input will be missed. We wish him well.
With effect from 19 June 2014, Mike Bishop becomes our Senior Independent Director.
Adrian Collins
Chairman
Chief Executive's Statement
Introduction
Liontrust has delivered another year of expansion with net inflows of £381 million. It is particularly pleasing that we have experienced net inflows across four of our fund management teams which is recognition of the strong long-term performance we have been producing. It also shows the benefit of focusing on those asset classes where we have the expertise to add value, having fund managers with the courage of their convictions and distinct and rigorous investment processes.
The hard work of the past four years in developing our distribution capability and reach, client engagement and raising our profile is also bearing fruit. The addition of the multi-asset/multi-manager team of John Husselbee and Paul Kim is enabling us to access the wider adviser market and meet the increasing demand for investment solutions.
Assets under Management
On 31 March 2014, our assets under management ("AuM") stood at £3,613 million and were broken down by type and process as follows:-
Process |
Total |
Institutional |
UK Retail |
DPMS |
Offshore Funds |
|
(£m) |
(£m) |
(£m) |
(£m) |
(£m) |
Cashflow Solution |
860 |
552 |
305 |
- |
3 |
Economic Advantage |
1,826 |
- |
1,813 |
- |
13 |
Macro Thematic |
650 |
76 |
574 |
- |
- |
Credit |
55 |
- |
- |
- |
55 |
Asia |
23 |
- |
23 |
- |
- |
Multi-Asset |
143 |
29 |
- |
114 |
- |
Indexed |
56 |
- |
56 |
- |
- |
Total |
3,613 |
657 |
2,771 |
114 |
71 |
Fund Flows
Liontrust has recorded net inflows of £381 million in the year (2013: £569 million). A reconciliation of fund flows and AuM over the year is as follows:-
|
Total |
Institutional |
UK Retail |
DPMS |
Offshore Funds |
|
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
Opening AuM - 1 April 2013 |
3,039 |
501 |
2,263 |
- |
275 |
|
|
|
|
|
|
Net flows* |
381 |
109 |
293 |
111 |
(132) |
|
|
|
|
|
|
Market and Investment performance |
193 |
47 |
215 |
3 |
(72) |
|
|
|
|
|
|
Closing AuM - 31 March 2014 |
3,613 |
657 |
2,771 |
114 |
71 |
* The figures for "Net flows" include £123 million relating to Discretionary Portfolio Management Service ('DPMS') and Institutional assets that came with the recruitment of the Multi-Asset team and the acquisition of North Investment Partners Limited.
Outlook
We are excited about the opportunities for Liontrust over the next few years. The long-term savings market can only grow as the ageing population is required to take more responsibility for funding their own retirement. The government's recent announcement that they will remove the obligation on individuals to buy an annuity with their pension fund presents the fund management industry with the opportunity to offer investment solutions to the post-retirement market. We are ideally placed to attract assets from this market with our equity income franchise encompassing UK, Asia and Global funds and our experienced multi-asset/multi-manager team.
We see significant opportunities as well for distribution internationally, which until now has only contributed around 5% of our sales. We have been building our Dublin range of funds in anticipation of an expansion outside the UK.
I am confident we will continue to grow Liontrust's profits and AuM given our excellent long-term investment performance, the distribution capability we have been developing and the opportunities for the long-term savings industry in general.
John Ions
Chief Executive
Extracts from the Strategic Report
UK Retail fund performance
Detailed quartile rankings by fund over one, three and five years and since launch or the fund manager was appointed are shown in the table below:
|
Quartile ranking - 1 year |
Quartile ranking - 3 year |
Quartile ranking - 5 year |
Quartile ranking - Since Manager tenure |
Launch / Manager appointed/Change in Objective |
Liontrust Global Income Fund* |
- |
- |
- |
2 |
01/08/2013 |
Liontrust UK Growth Fund |
4 |
2 |
2 |
2 |
25/03/2009 |
Liontrust Special Situations Fund |
3 |
1 |
1 |
1 |
11/11/2005 |
Liontrust UK Smaller Companies Fund |
2 |
1 |
1 |
1 |
08/01/1998 |
Liontrust European Growth Fund |
4 |
4 |
2 |
1 |
15/11/2006 |
Liontrust Asia Income Fund |
3 |
- |
- |
1 |
05/03/2012 |
Liontrust Macro Equity Income Fund |
2 |
3 |
2 |
1 |
31/10/2003 |
Liontrust Macro UK Growth Fund |
2 |
3 |
3 |
1 |
01/08/2002 |
Source: Financial Express, total return, bid to bid, to 31 March 2014 unless otherwise stated. The above funds are all UK authorised unit trusts (retail share class). Liontrust FTSE 100 Tracker Fund (index fund) not included. Past performance is not a guide to the future; the value of investments and the income from them can fall as well as rise. Investors may not get back the amount originally subscribed.
*Liontrust Global Income Fund's investment objective and policy changed to allow the fund managers to select companies on a global basis. The fund moved into the IMA Global Equity Income sector on 1 August 2013.
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2014
|
|
|
|
|
Year |
Year |
|
|
|
|
|
ended |
ended |
|
|
|
|
|
31-Mar-14 |
31-Mar-13 |
|
|
|
|
Notes |
£'000 |
£'000 |
|
|
|
|
|
|
|
Continuing Operations |
|
|
|
|
||
|
|
|
|
|
|
|
Revenue |
|
|
|
|
28,459 |
20,446 |
Cost of sales |
|
|
|
(87) |
(105) |
|
Gross profit |
|
|
|
28,372 |
20,341 |
|
Realised loss on sale of financial assets |
|
- |
(6) |
|||
Administration expenses |
|
3 |
(24,636) |
(24,051) |
||
Operating profit/(loss) |
|
|
3,736 |
(3,716) |
||
|
|
|
|
|
|
|
Interest receivable |
|
|
|
23 |
9 |
|
Interest payable |
|
|
|
(81) |
(228) |
|
Profit/(loss) before tax |
|
|
3,678 |
(3,935) |
||
|
|
|
|
|
|
|
Taxation |
|
|
|
|
(1,208) |
(19) |
|
|
|
|
|
|
|
Profit/(loss) for the year |
|
|
2,470 |
(3,954) |
||
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
||
Gain on financial assets net of tax |
|
|
- |
(6) |
||
Realised gain on sale of financial assets taken to the statement of comprehensive income |
|
- |
6 |
|||
Other Comprehensive income for the year, net of tax |
|
- |
- |
|||
|
|
|
|
|
|
|
Total comprehensive income |
|
|
2,470 |
(3,954) |
||
|
|
|
|
|
|
|
|
|
|
|
|
Pence |
Pence |
Earnings per share |
|
|
|
|
||
Basic |
|
5 |
6.57 |
(11.20) |
||
Diluted |
|
5 |
5.85 |
(10.04) |
The notes 1 to 6 form an integral part of this condensed consolidated financial information.
Consolidated Balance Sheet
As at 31 March 2014
|
|
|
|
|
31-Mar-14 |
31-Mar-13 |
|
|
|
|
|
£'000 |
£'000 |
Assets |
|
|
|
|
|
|
Non current assets |
|
|
|
|
|
|
Intangible assets |
|
|
|
7,446 |
10,098 |
|
Property, plant and equipment |
|
|
265 |
184 |
||
Deferred tax assets |
|
|
|
1,228 |
1,757 |
|
|
|
|
|
|
8,939 |
12,039 |
Current assets |
|
|
|
|
|
|
Trade and other receivables |
|
|
31,328 |
31,123 |
||
Financial assets |
|
|
|
703 |
131 |
|
Cash and cash equivalents |
|
|
15,273 |
10,483 |
||
Total Current assets |
|
|
|
47,304 |
41,737 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Non current liabilities |
|
|
|
|
|
|
Convertible unsecured loan stock - Loan component |
- |
(2,621) |
||||
|
|
|
|
|
- |
(2,621) |
Current liabilities |
|
|
|
|
|
|
Trade and other payables |
|
|
|
(34,645) |
(33,994) |
|
Corporation tax payable |
|
|
|
(670) |
- |
|
Total Current liabilities |
|
|
|
(35,315) |
(33,994) |
|
|
|
|
|
|
|
|
Net current assets |
|
|
|
11,989 |
7,743 |
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
20,928 |
17,161 |
|
|
|
|
|
|
|
Shareholders' equity attributable to owners of the parent |
|
|
|
|||
Ordinary shares |
|
|
|
424 |
398 |
|
Share premium |
|
|
|
17,692 |
14,692 |
|
Capital redemption reserve |
|
|
19 |
15 |
||
Convertible unsecured loan stock - Equity component |
- |
479 |
||||
Retained earnings |
15,020 |
13,779 |
||||
Own shares held |
|
|
|
(12,227) |
(12,202) |
|
Total equity |
|
|
|
|
20,928 |
17,161 |
The notes 1 to 6 form an integral part of this condensed consolidated financial information.
Consolidated Cash Flow Statement
For the year ended 31 March 2014
|
|
|
|
|
|
Year |
Year |
|
|
|
|
|
|
ended |
ended |
|
|
|
|
|
|
31-Mar-14 |
31-Mar-13 |
|
|
|
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|||
Cash received from operations |
|
|
35,581 |
27,782 |
|||
Cash paid in respect of operations |
|
|
(28,789) |
(26,592) |
|||
Net cash received from changes in unit trust receivables and payables |
|
311 |
3,153 |
||||
Net cash used in operations |
|
|
|
7,103 |
4,343 |
||
|
|
|
|
|
|
|
|
Interest received |
|
|
|
|
23 |
9 |
|
Tax received |
|
|
|
|
- |
- |
|
Net cash used in operating activities |
|
|
7,126 |
4,352 |
|||
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|||
Purchase of property and equipment |
|
|
(146) |
(97) |
|||
Acquisitions |
|
|
|
(228) |
(12,240) |
||
Purchase of seeding investments |
|
|
|
(42) |
(267) |
||
Sale of seeding investments |
|
|
|
- |
308 |
||
Net cash used in investing activities |
|
(416) |
(12,296) |
||||
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|||
Issue of new shares |
|
|
3,030 |
3,167 |
|||
Purchase of own shares |
|
|
(1,019) |
- |
|||
Issue of convertible unsecured loan stock |
|
|
- |
4,000 |
|||
Conversion convertible unsecured loan stock |
|
|
(3,030) |
(900) |
|||
Repayment of convertible unsecured loan stock |
|
|
(70) |
- |
|||
Interest payable on Convertible Loan |
|
|
(81) |
(228) |
|||
Dividends paid |
|
|
|
(750) |
- |
||
Net cash (used in)/from financing activities |
|
|
(1,920) |
6,039 |
|||
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
4,790 |
(1,905) |
|||||
Opening cash and cash equivalents* |
|
|
10,483 |
12,388 |
|||
Closing cash and cash equivalents |
|
|
15,273 |
10,483 |
* Cash and cash equivalents consists only of cash balances.
Consolidated Statement of Change in Equity
For the year ended 31 March 2014
|
|
Share |
Share |
Capital |
Loan |
Retained |
Own shares |
Total |
|
|
capital |
premium |
redemption |
equity |
earnings |
held |
Equity |
|
|
|
|
|
element |
|
|
|
|
|
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
|
|
|
|
|
|
|
|
|
Balance at 1 April 2013 brought forward |
398 |
14,692 |
15 |
479 |
13,779 |
(12,202) |
17,161 |
|
|
|
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
2,470 |
- |
2,470 |
|
Dividends paid |
|
- |
- |
- |
- |
(750) |
- |
(750) |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
- |
- |
- |
- |
1,720 |
- |
1,720 |
|
Net losses as part of the acquisition of North Investment Partners Ltd
|
|
-
|
-
|
-
|
-
|
(202)
|
-
|
(202)
|
Conversion of Convertible unsecured loan stock - Equity component |
|
- |
479 |
- |
(479) |
- |
- |
- |
|
|
|
|
|
|
|
|
|
Shares issued |
|
26 |
2,521 |
4 |
- |
- |
- |
2,551 |
|
|
|
|
|
|
|
|
|
Purchase of own shares |
- |
- |
- |
- |
(994) |
(25) |
(1,019) |
|
Equity share options issued |
- |
- |
- |
- |
717 |
- |
717 |
|
|
|
|
|
|
|
|
|
|
Balance at 31 March 2014 |
424 |
17,692 |
19 |
- |
15,020 |
(12,227) |
20,928 |
Consolidated Statement of Change in Equity
For the year ended 31 March 2013
|
|
Share |
Share |
Capital |
Loan |
Retained |
Own shares |
Total |
|
|
capital |
premium |
redemption |
equity |
earnings |
held |
Equity |
|
|
|
|
|
element |
|
|
|
|
|
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
|
|
|
|
|
|
|
|
|
Balance at 1 April 2012 brought forward |
371 |
11,552 |
15 |
- |
17,073 |
(12,172) |
16,839 |
|
|
|
|
|
|
|
|
|
|
Loss for the period |
- |
- |
- |
- |
(3,954) |
- |
(3,954) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
- |
- |
- |
- |
(3,954) |
- |
(3,954) |
|
|
|
|
|
|
|
|
|
|
Addition of Convertible unsecured loan stock - Equity component |
|
- |
- |
- |
479 |
- |
- |
479 |
|
|
|
|
|
|
|
|
|
Shares issued |
|
27 |
3,140 |
- |
- |
- |
- |
3,167 |
|
|
|
|
|
|
|
|
|
Purchase of own shares
|
-
|
-
|
-
|
-
|
-
|
(30)
|
(30)
|
|
Equity share options issued |
- |
- |
- |
- |
660 |
- |
660 |
|
|
|
|
|
|
|
|
|
|
Balance at 31 March 2013 |
398 |
14,692 |
15 |
479 |
13,779 |
(12,202) |
17,161 |
Notes to the Financial Statements
1. Accounting policies
The Group's accounting policies are consistent with those set out in the Report and Accounts for the year ended 31 March 2013.
2. 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.
3. Administration expenses from Continuing Operations
|
Year ended |
Year ended |
|
31-Mar-14 |
31-Mar-13 |
|
£'000 |
£'000 |
Employee related expenses |
|
|
Director and employee costs |
2,375 |
1,860 |
Pensions |
122 |
27 |
Share incentivisation expense |
867 |
722 |
Severance compensation |
99 |
191 |
|
3,463 |
2,800 |
Non-employee related expenses |
|
|
Members drawings charged as an expense |
11,312 |
10,127 |
Restructuring (member related) |
- |
572 |
Restructuring (acquisition related and other) |
576 |
598 |
Acquisition related expenses |
333 |
1,738 |
Depreciation and Intangible asset amortisation |
2,717 |
3,276 |
Convertible loan repurchase |
82 |
- |
Financial Services Compensation Scheme Levy |
- |
73 |
Other administration expenses |
6,153 |
4,867 |
|
24,636 |
24,051 |
4. Adjusted profit before tax
Adjusted profit before tax is disclosed in order to give shareholders an indication of the profitability of the Group, non-cash (depreciation, intangible asset amortisation and share incentivisation related) expenses and non-recurring (acquisition, cost reduction, restructuring, share incentivisation and severance compensation related) expenses ("Adjustments"), and is reconciled in the table below.
|
Year ended |
Year ended |
|
31-Mar-14 |
31-Mar-13 |
|
£'000 |
£'000 |
|
|
|
Profit/(loss) for the year |
2,470 |
(3,954) |
Taxation on Continuing Operations |
1,208 |
19 |
Profit/(loss) before tax from Continuing Operations |
3,678 |
(3,935) |
|
|
|
Share incentivisation expense |
867 |
722 |
Severance compensation |
99 |
191 |
Restructuring (member related) |
- |
572 |
Restructuring (acquisition related and other) |
576 |
598 |
Acquisition related expenses |
333 |
1,738 |
Financial Services Compensation Scheme Levy |
- |
73 |
Convertible loan repurchase |
82 |
- |
Members' advance drawings |
- |
531 |
Depreciation and Intangible asset amortisation |
2,717 |
3,276 |
Adjustments |
4,674 |
7,701 |
|
|
|
Adjusted profit/(loss) before tax |
8,352 |
3,766 |
|
|
|
Interest receivable |
(23) |
(9) |
Interest payable |
81 |
228 |
Adjusted operating profit |
8,410 |
3,985 |
|
|
|
Adjusted basic earnings per share* |
17.10 |
8.11 |
Adjusted diluted earnings per share* |
15.24 |
7.27 |
* Assumes a tax rate of 23% (2013: 24%)
5. Earnings per share
The calculation of basic earnings per share is based on profit after taxation for the year and the weighted average number of Ordinary Shares in issue for each period. The weighted average number of Ordinary Shares was 37,617,940 for the year (2013: 35,289,555). 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 or Ordinary Shares held in the Liontrust Asset Management Employee Trust that were in existence during the year ended 31 March 2014. The adjusted weighted average number of Ordinary Shares so calculated for the year was 42,200,524 (2013: 39,385,949). This is reconciled to the actual weighted number of Ordinary Shares as follows:
|
2014 |
2013 |
|
number |
number |
|
|
|
Weighted average number of Ordinary Shares |
37,617,940 |
35,289,555 |
|
|
|
Weighted average number of dilutive Ordinary shares under option: |
|
|
|
|
|
- to the Liontrust Senior Incentive Plan |
2,986,487 |
99,153 |
- to the Liontrust Incentive Plan |
199,099 |
198,305 |
- to the Liontrust Option Plan |
34,884 |
4,415 |
- to the Deferred Bonus and Variable Allocation Plan |
10,552 |
- |
Dilutive effect of shares from CULS |
1,351,562 |
3,794,521 |
Adjusted weighted average number of Ordinary Shares |
42,200,524 |
39,385,949 |
6. Acquisition of North Investment Partners Limited
On 15 October 2013, Liontrust Asset Management Plc ("Liontrust") announced that it had entered into a conditional share purchase agreement (the "SPA") to purchase the entire issued ordinary share capital of North Investment Partners Limited ("North") from the existing North shareholders. The purchase completed on 15 October 2013. On the 1 March 2014 North was renamed Liontrust Investment solutions Limited.
Forward Looking Statements
This preliminary announcement constitutes non-statutory accounts under section 435 of the Companies Act 2006. The financial information for the year ended 31 March 2013 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 498(2) or (3) of the Companies Act, 2006.
The Annual Report is expected to be posted to shareholders on or around 5 July 2014.
The release, publication, transmission or distribution of this announcement in 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.
This Full Year Results 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 Conduct Authority). Nothing in this announcement should be construed as a profit forecast or be relied upon as a guide to future performance.
END