Interim Results

Liontrust Asset Management PLC
31 October 2002

Embargoed until, 0700 hours, Thursday 31st October 2002

31 October 2002


                         Liontrust Asset Management PLC

           Interim results for the six months to 30th September 2002


Half year profits rose by 76% to £2.71million whilst funds under management
reached £1.864billion with a further £856million in transition.


  • Core operating profits (excluding performance fees) increased by 40% to
    £2.03million.

  • Total operating profits rose by 76% to £2.71million.

  • Interim dividend of 1p per share (0.5p per share last year) declared.

  • Funds under management (including £856million in transition) rose by 20%
    to £2.72billion. The market fell by 30% over the period.

  • All four of our investment processes beat their benchmarks.

  • 14 new pension fund mandates won worth £474million.

  • Net unit trust sales £164million.

  • Liontrust Absolute Return Fund launched.

  • Funds under management on 29 October were £2.263billion, with a further
    £643million in transition.

Nigel Legge, Joint Chief Executive, commenting on these results, said

        'We continue to concentrate on our four investment processes. Our
        experience over the last six months has confirmed our view that the
        combination of a simple business model with good investment performance
        underpinned by clearly articulated investment processes is a powerful
        formula for adding value.'

Enquiries:

Nigel Legge, Joint Chief Executive Liontrust Asset Management PLC 020 7412 1700

Richard Locke, Cazenove & Co. Ltd  020 7588 2828

Note to Editors

Figures for funds in transition relate to mandates that the Company has been
notified that it has been awarded, subject to contract.




Liontrust Asset Management plc

Chairman's Interim Statement

Thanks to a combination of good investment performance and new business our
funds under management increased to £1.864bn from £1.768bn in the six months to
30 September 2002 despite a market fall of 29.6%. In addition we had £856m of
funds in transition at the end of the period compared with £500m at the end of
March. On 29 October our funds under management stood at £2.263bn with a further
£643m in transition.

As we have explained previously, our budgets and internal forecasts are based on
'core' profits excluding any contribution from performance related fees which,
by their nature, are likely to be erratic and unpredictable. In the six months
to 30 September core earnings rose 40% to £2.03m, compared with £1.45m for the
comparable period a year ago. Total operating profits, that is including income
from performance related fees, were £2.71m for the period under review, up 76%
compared with £1.54m last year. Most of our performance related contracts fall
due for calculation and payment (if earned) in the second half of our financial
year. Relative performance of our four investment processes has been good over
the period so, if this is maintained, performance related fees will be earned.

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 from 70% to 69%. Total compensation
costs as a percentage of pre-compensation profit are targeted to remain at 55% ,
well below our industry's average. Core earnings per share at 5.03p are 45% up
on a year ago and total earnings per share (including the contribution from
performance related fees earned in the period) rose 76% to 6.47p per share. Your
board has decided to declare an interim dividend of 1p per share compared with
0.5p a year ago. Some of this increase represents a rebalancing of the
proportion between the interim and final dividends and shareholders should not
assume an equivalent percentage increase in the final dividend. The dividend
will be paid on 21 November to shareholders on the register on 8 November. Any
special dividend based on performance related earnings will be paid with the
final dividend when the results for the full year are available.

A wide range of investment consultants continue to invite us to pitch for new
pension fund mandates and in the six months under review we have been successful
in winning 14 new accounts worth a total of £474m. The majority of the new
accounts are for the Large Cap process. We chose not to pursue certain new
mandates when we could not agree fee levels.

We have strengthened our sales team that serves intermediaries as we believe our
products will continue to sell well to this client group. The First Income Fund,
based on our fourth investment process, the Value Dynamic which was published in
July 2001, has subsequently grown from £20m to over £210m. Net unit trust sales
for the period were £164m.

We have increased the number of distribution channels through which we can sell
our unit trusts and continue to work on a number of new product initiatives
based on our four investment processes. We launched the Liontrust Absolute
Return Fund, a hedge fund based on the Lang Approach, in September raising £32m.

Our experience in recent months has confirmed our view that the combination of a
simple business model with good investment performance, underpinned by clearly
articulated investment processes, is a powerful formula for adding value. We
face the future with confidence.

Ellen Winser

Chairman

31 October 2002



LIONTRUST ASSET MANAGEMENT PLC



Consolidated Profit and Loss Account

Six months to 30th September 2002
                                                            6 months           6 months            12 months
                                                          to 30.9.02         to 30.9.01           to 31.3.02
                                                         (unaudited)        (unaudited)            (audited)
                                                 Note          £'000              £'000                £'000

Turnover (Gross profit)                                        7,625              4,873               15,191
Staff costs                                                  (3,191)            (2,060)              (6,803)
Exceptional staff costs                             2            174                 77                (244)
Total staff costs                                            (3,017)            (1,983)              (7,047)
Other operating charges                                      (1,899)            (1,348)              (3,041)
Operating profit                                               2,709              1,542                5,103
Net interest receivable                                          173                224                  404
Profit on ordinary activities before tax                       2,882              1,766                5,507
Taxation                                            3          (750)              (556)              (1,700)
Profit on ordinary activities after tax                        2,132              1,210                3,807
Dividend                                                       (323)              (165)              (2,494)
Profit for the period transferred to                           1,809              1,045                1,313
reserves

                                                                                  pence
Basic earnings per share                            4           6.47               3.67                11.52
Basic earnings per share (adjusted)                 4           6.10               3.51                12.03
Basic earnings per share (core)                     4           5.03               3.47                 7.52
Diluted earnings per share                          4           6.21               3.52                11.10
Diluted earnings per share (adjusted)               4           5.35               3.37                11.60
Diluted earnings per share (core)                   4           4.83               3.33                 7.25


                                                            6 months           6 months          12 months
                                                          to 30.9.02         to 30.9.01         to 31.3.02
                                                         (unaudited)        (unaudited)          (audited)
                                                               £'000              £'000              £'000

Core earnings                                                  2,031              1,448              3,215
Performance related earnings                                     504                 17              2,132
                                                               2,535              1,465              5,347
Exceptional costs                                                174                 77              (244)
Operating profit                                               2,709              1,542              5,103



LIONTRUST ASSET MANAGEMENT PLC

Consolidated Balance Sheet

At 30th September 2002
                                                         30.9.02             30.9.01             31.3.02
                                                     (unaudited)         (unaudited)           (audited)
                                                           £'000               £'000               £'000

Fixed assets                                                 292                 284                 310
Own shares held by Employee Benefit Trust                  3,454                   -                   -
Current assets
    Short term investments                                    99                 119                 114
    Debtors                                                9,260               6,944              14,939
    Cash at bank and in hand                               7,784               7,726               9,560
                                                          17,143              14,789              24,613
Creditors - amounts falling due within one year         (11,680)             (8,600)            (17,781)
Net current assets                                         5,463               6,189               6,832
Total assets less current liabilities                      9,209               6,473               7,142
Creditors - amounts falling due after more than                -               (158)                   -
one year
                                                           9,209               6,315               7,142
Capital and reserves
Called up ordinary share capital                             335                 329                 333
Share premium account                                      2,731               1,543               2,098
Profit and loss account                                    6,143               4,443               4,711
                                                           9,209               6,315               7,142



LIONTRUST ASSET MANAGEMENT PLC

Consolidated Cash Flow Statement

Six months to 30th September 2002
                                                          6 months           6 months           12 months
                                                        to 30.9.02         to 30.9.01          to 31.3.02
                                                       (unaudited)        (unaudited)           (audited)
                                                             £'000              £'000               £'000

Operating profit                                             2,709              1,542               5,103
Exceptional staff costs                                      (174)               (77)                 244
Operating profit before exceptional items                    2,535              1,465               5,347
Depreciation charges                                            52                 51                 104
(Increase)/ decrease in short term investments                  15               (58)                (53)
Decrease/ (increase) in debtors                              5,679              (321)             (8,316)
Decrease/(increase) in creditors                           (4,170)            (4,216)               2,671
Net cash inflow/(outflow) from operating activities          4,111            (3,079)               (247)

Net cash inflow/(outflow) from operating activities          4,111            (3,079)               (247)
Returns on investment and servicing of finance                 173                224                 404
Taxation                                                     (502)              (860)             (2,352)
Capital expenditure and financial investment               (3,488)               (19)                (98)
Equity dividend paid                                       (2,328)              (165)               (331)
                                                           (2,034)            (3,899)             (2,624)
Financing                                                      258                  -                 559
Increase/ (decrease) in cash                               (1,776)            (3,899)             (2,065)



LIONTRUST ASSET MANAGEMENT PLC

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 31st March 2002.
    The financial information for the year ended 31st March 2002 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.

    Exceptional staff costs:

                                                 30.9.02            30.9.01            31.3.02
                                                   £'000              £'000              £'000
    Provision for

            National Insurance on                    174                 77              (244)
            unapproved share options
                                                     174                 77              (244)

 3. Taxation

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

    LIONTRUST ASSET MANAGEMENT PLC

 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, excluding the shares held by the Employee Benefit
            Trust. The weighted average number of ordinary shares was 32,969,515
            for the six months ended 30th September 2002, 32,927,459 for the six
            months ended 30th September 2001 and 33, 057,365 for the year ended
            31st March 2002.

            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. For the six months
            to 30th September 2002 these are reconciled to the basic earnings
            per share as follows:

                                                              Earnings                EPS
                                                                 £'000              pence

Basic earnings                                                   2,132               6.47
Exceptional item less tax charge                                 (122)
Adjusted earnings                                                2,010               6.10
Performance related fees and costs less tax charge               (353)
Core earnings                                                    1,657               5.03


            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
            2002. The adjusted weighted average number of ordinary shares so
            calculated was 34,333,617 for the six months ended 30th September
            2002, 34,348,610 for the six months ended 30th September 2001 and
            34,303,129 for the year ended 31st March 2002.

 5.      Dividends

            The directors propose to pay an interim dividend in respect of the
            current period of 1.0 pence per share (2001: 0.5 pence) payable on
            22nd November 2002 to shareholders on the register at the close of
            business on 8th November 2002.

END.


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