Interim Results

Liontrust Asset Management PLC
31 October 2001

                                PRESS RELEASE

                                     AND

                         STOCK EXCHANGE ANNOUNCEMENT


                        Liontrust Asset Management PLC



                Further improvement in results from Liontrust



Liontrust Asset Management PLC ('Liontrust'), the specialist UK equities fund
management group, announced today its interim results for the six months to 30
September 2001.


Highlights




  * Core earnings for the six months to 30 September at £1.45m, up 7.5%




  * Core earnings per share for the six months at 3.47 pence, up 8.1%.




  * Cost: income ratio on core business maintained at 70%.




  * Maiden interim dividend of 0.5p per share declared, payable on 23
    November 2001.




  * Funds under management £1.287bn on 30 September 2001, compared with
    £1.276bn at 31 March 2001.




  * £290m of funds in transition at the end of the period compared with 
    £142m at 31 March 2001.




  * On 29 October 2001 funds under management had risen to £1.371bn.




  * Eight new pension fund accounts won worth a total of £289m, five of
    which, worth £192m, have been won since July 2001 AGM.




  * Increased number of distribution channels.







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


'Our half year results show solid progress on all fronts. The experience of
the last few months has demonstrated vividly to us why the combination of our
simple business model and clearly articulated investment processes has the
potential to add significant value. We continue to view our future with
confidence.'


Ends


For further information please contact:


Nigel Legge, Joint Chief Executive,

Liontrust Asset Management PLC   020-7 412 1700



Chairman's Statement

In the six months ended 30 September 2001 the FTSE All Share Index fell 14 %
but due both to good investment performance and new business won, our own
funds under management stood at £1.287bn compared with £1.276bn at our year
end. In addition, we had £290m of funds in transition at the end of the period
compared with £142m at 31 March 2001. On 29 October funds under management
stood at £1.371bn with a further £300m in transition.



We bucked the industry trend of falling profits with core earnings for the six
months to 30 September at £1.45m being 7.5% higher than the comparable period
a year ago. Total operating profits, however, which include performance fees
when earned, are lower than in the corresponding period because virtually no
performance related fees became due in the period under review. The cut off
for most of our performance related contracts is in the second half of our
financial year and at the time of writing, if our investment performance is
maintained, performance related fees will be earned. I would reiterate that
our ability to earn performance fees depends upon relative performance
compared to a benchmark and not on whether the benchmark itself is rising or
falling.



As we have explained in previous statements, total operating profits include
performance fee earnings and these can be erratic. We may therefore experience
periods when total operating profits are lower while core operating profits
continue to rise. We regard the trend in core operating profits as the more
significant measure as it reflects the underlying progress of the business.



We have maintained a tight control on our costs. The cost: income ratio on our
core business has remained at 70%. We employed 35 people at the end of
September and total compensation costs as a percentage of pre-compensation
profit are targeted to remain at 55% for the current year, as forecast at the
time of our flotation and well below the industry average.



Core earnings per share at 3.47p are up 8.1% on the comparable period a year
ago. The Board has decided to declare a maiden interim dividend of 0.5p per
share, payable on 23 November 2001 to shareholders on the register on 9
November 2001.


We continue to be put forward to pitch for pension fund mandates by a wide
range of investment consultants and during the six months under review were
successful in winning eight new accounts worth a total of £289m, five of
which, worth £192m, have been won since our AGM announcement on 10 July. The
majority of the new accounts are for the Large Cap process with the remainder
being based on the Cross Report. A number of existing clients increased their
investments with us by £25m. We also decided not to pursue certain new
mandates when we could not agree fee levels.



We are strengthening our IFA sales team as we have great confidence that our
products, particularly the Liontrust First Income Fund, will sell well into
this market. This fund, based on our fourth process, The Value Dynamic which
was published in July, has grown to £32m from £14m since then.



We have increased the number of distribution channels through which we plan to
sell our unit trusts which include Skandia Life, Cofunds, Selestia and
Barclays. We continue to work on a number of new product initiatives based on
our four processes which have an estimated capacity of around £15bn.



Our experience in recent months has demonstrated vividly to us why the
combination of our simple business model and clearly articulated investment
processes has the potential to add significant value. We continue to view our
future with confidence.

Ellen Winser,

Chairman

30th October 2001

LIONTRUST ASSET MANAGEMENT PLC

Consolidated profit and loss account

Six months ended 30 September 2001
                                       6 months to   6 months to     12 months
                                           30.9.01       30.9.00    to 31.3.01
                                       (unaudited)   (unaudited)      (audited
                                  Note       £'000         £'000         £'000

Gross Profit                                 4,873         6,078        14,835
Staff costs                                (2,060)       (2,748)       (7,034)
Exceptional staff costs              2          77         (154)         (126)
Total staff costs                          (1,983)       (2,938)       (7,160)
Other operating charges                    (1,348)       (1,262)       (2,560)
Operating Profit                             1,542         1,878         5,115
Net interest receivable                        224           148           301
Profit on ordinary activities                1,766         2,026         5,416
before tax
Taxation                             3       (556)         (598)       (1,624)
Profit on ordinary activities                1,210         1,428         3,792
after tax
Dividend proposed                    3       (165)             -         (165)
Profit for the period transferred            1,045         1,428         3,627
to reserves

                                             pence    pence               pence
Basic earnings per share                 4    3.67     4.34               11.52
Basic earnings per share (adjusted)      4    3.51     4.67               11.79
Basic earnings per share (core)          4    3.47     3.21                6.59

Diluted earnings per share               4    3.52     4.16               11.01
Diluted earnings per share (adjusted)    4    3.37     4.47               11.27
Diluted earnings per share (core)        4    3.33     3.08                6.30


                                  6 months to      6 months to        12 months
                                      30.9.01          30.9.00       to 31.3.01
                                  (unaudited)      (unaudited)        (audited)
                                        £'000            £'000            £'000

Core earnings                           1,448            1,346            2,798
Performance related earnings               17              686            2,443
                                        1,465            2,032            5,241
Exceptional costs                          77            (154)            (126)
Operating profit                        1,542            1,878            5,115



Consolidated Balance Sheet

At 30 September 2001
                                              30.9.01       30.9.00     31.3.01
                                          (unaudited)   (unaudited)   (audited)
                                                £'000         £'000       £'000

Fixed assets                                      284           320         316
Current assets
Short-term investments                            119            53          61
Debtors                                         6,944         5,235       6,623
Cash at bank and in hand                        7,726         4,372      11,625
                                               14,789         9,660      18,309
Creditors - amounts falling due within one     (8,600)       (6,646)    (13,120)
year                                          
Net current assets                              6,189         3,014       5,189
Total assets less current liabilities           6,473         3,334       5,505
Creditors - amounts falling due after more       (158)         (263)       (235)
than one year
                                                6,315         3,071       5,270
Capital and reserves
Called up ordinary share capital                  329           329         329
Share premium account                           1,543         1,543       1,543
Profit and loss account                         4,443         1,199       3,398
                                                6,315         3,071       5,270



Consolidated cash flow statement

Six months to 30 September 2001


                                           6 months to   6 months to   12 months
                                               30.9.01       30.9.00  to 31.3.01
                                           (unaudited)   (unaudited)   (audited)
                                                 £'000         £'000      £'000
Operating profit                                 1,542         1,878      5,241
Depreciation charges                                51            52        103
Decrease / (increase) in short term               (58)            39         31
investments
(Increase) in debtors                            (321)         (464)     (1,853)
Increase / (decrease) in creditors             (4,293)       (3,524)      2,139
Net cash inflow / (outflow) from               (3,079)       (2,019)      5,661
operating activities

Net cash inflow / (outflow) from               (3,079)       (2,019)      5,661
operating activities
Returns on investment and servicing of             224           148        301
finance
Taxation                                         (860)         (238)       (771)
Capital expenditure and financial                 (19)          (34)        (81)
investment
Equity dividend paid                             (165)             -          -
Increase / (decrease) in cash                  (3,899)       (2,143)      5,110



Notes to the financial statements

 1. Basis of preparation

    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 31 March 2001.
    The financial information for the year ended 31 March 2001 has been
    abridged from the financial statements which received an unqualified audit
    report and which have been filed with the Registrar of Companies.

 2. Exceptional staff costs

    Exceptional staff costs are accrued in respect of the potential National
    Insurance liability on unapproved share options, which were disclosed in
    the Company's Prospectus. In accordance with the UITF Abstract issued by
    the Accounting Standards Board in July 2000, the full potential liability
    is spread over the period from the date of grant to the end of the
    performance period. The options were granted on flotation of the Company's
    shares in July 1999 and are exercisable from July 2002 onwards.

    Exceptional staff costs:

                                  30.9.01          30.9.00         31.3.01
                                    £'000            £'000           £'000

    Write back/
    (provision)
    for                                77             (154)          (126)
    National                                                            
    Insurance
    on
    unapproved
    share
    options
                                       77             (154)          (126)



 3. Taxation

    The interim tax charge has been calculated at the corporation tax rate of
    30% (2000: 30%).



 4. 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. The weighted average number of ordinary shares was 32,927,459
        for the six months ended 30 September 2001, the six months ended 30
        September 2000 and the year ended 31 March 2001.

        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 both the exceptional items, the performance
        related fees and costs and related tax charges. For the six months to
        30 September 2001 these are reconciled to the basic earnings per share
        as follows:

                                                       Earnings             EPS
                                                          £'000           pence

Basic earnings                                            1,210            3.67
Exceptional item less tax charge                           (54)          (0.16)
Adjusted earnings                                         1,156            3.51
Performance related fees and costs less tax charge         (12)          (0.04)
Core earnings                                             1,144            3.47




        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 30 September 2001. The
        adjusted weighted average number of ordinary shares so calculated was
        34,343,211 for the six months ended 30 September 2001, 34,371,251 for
        the six months ended 30 September 2000 and 34,442,526 for the year
        ended 31 March 2001.



        5.     Dividends

        The directors propose to pay an interim dividend in respect of the
        current period of 0.5 pence per share (2000: nil) payable on 23
        November 2001 to shareholders on the register at the close of business
        on 9 November 2001.



This preliminary announcement constitutes non-statutory accounts under section
240 of the Companies Act 1985. The results for the six months ended 30th
September 2001 are unaudited. The results for the year to 31st March 2001 have
been extracted from the Group's statutory accounts for that period, which have
been filed with 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.