Embargoed until 0700 hours, Tuesday 10 November 2015
HALF YEARLY REPORT FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2015
Liontrust Asset Management Plc ("Liontrust", the "Company", or the "Group"), the independent fund management group, today announces its Half Yearly Report for the six months ended 30 September 2015.
Results:
· Revenues up 18% compared to the same period last year
· Adjusted profit before tax of £5.9 million (2014: £5.1 million), an increase of 16%
· Adjusted diluted EPS of 10.4p per share (2014: 9.4 pence per share), an increase of 11%
· Profit before tax of £4.2 million (2014: £3.2 million)
Dividend:
· Interim dividend of 3.0 pence per share payable on 17 December 2015, the shares going ex-dividend on 19 November 2015 (2014: 2.0 pence per share), an increase of 50%
Assets under management:
· On 30 September 2015, assets under management were £4.4 billion (2014: £3.8 billion)
· Close of business on 6 November 2015, assets under management were £4.6 billion
Net flows:
· Net inflows for the six months to 30 September 2015 of £110 million (2014: £284 million)
Commenting on the results, John Ions, Chief Executive, said:
"Liontrust has continued to advance in the first six months of the financial year, which is reflected in our net inflows of £110 million and our financial results. Our AuM, revenues and profit before tax are all significantly higher than they were in the first half of the last financial year and we will be paying an interim dividend of 3.0 pence per share, which is 50% higher than we paid this time last year.
"At the heart of our ongoing success is the strength of our fund management teams. Today marks the 10th anniversary of the Liontrust Special Situations Fund, which encapsulates the power of top quality active fund management, robust investment processes and a long-term approach to investing. From launch on 10 November 2005 to 31 October 2015, the Fund returned 227.4% against 85.5% by the average fund in the IA UK All Companies sector and 81.3% by the FTSE All-Share Index (Source: Financial Express, total return, bid-to-bid retail class).
"We have broadened our fund management offering and we now have seven excellent teams. This is reflected in the growth of our alternative investments capability, with these funds being central to the expansion of our distribution in Continental Europe.
"We continue to enhance our distribution capability, in both the UK and internationally, and this is key to the future growth of the business. The investment in CRM and digital marketing enables us to reach a larger number of intermediaries with more targeted, consistent and structured communications. The effectiveness of our marketing and brand is shown by the consistently high recognition and awareness figures we gain for our advertising among intermediaries.
"The fund management industry is benefiting from the ever increasing need for people to save for their own retirement and then having the freedom to choose what to do with their pension pot when they have retired. Given the fund management expertise and strength of distribution we have, I am confident we will be entrusted with greater levels of people's savings in the future."
For further information please contact:
Liontrust Asset Management 020 7412 1700
John Ions www.liontrust.co.uk
Vinay Abrol
Simon Hildrey - Head of Marketing & Distribution Strategy
Numis Securities Limited 020 7260 1000
Charles Farquhar, Andrew Holloway
Macquarie Capital (Europe) Limited 020 3037 2000
Advisory - Jonny Allison, Kavita Choitram
Corporate Broking - Nicholas Harland, Nick Donovan
Chairman's Statement
Introduction
I am delighted to announce very good results for the first six months of our financial year. Our revenues have increased by 18% compared to the first half of the last financial year and our adjusted profit before tax has grown by 16% to £5.9 million. Our earnings and profits have been driven by the continued growth in our AuM, which reached £4.4 billion at the end of September and more than £4.6 billion on 6 November.
It is particularly pleasing that we have been able to report these figures for a period in which there was mounting uncertainty among investors about the future direction of markets. We attribute the relative robustness of our AuM during such volatile market environments to our distinct investment processes, the experience and longevity of our fund managers and our regular and clear communications.
No one knows when interest rates will start to rise in the US and UK but there has been no shortage of comment in the media on what the impact may be on markets. We have increased our range of alternative investments, now offering three strong performing long/short funds for those investors who want to hedge their equity or credit exposure as a result of the uncertainty.
The continued expansion of Liontrust is illustrated by the fact we now have seven fund management teams, including a very wide range of Multi-Asset portfolios, broader reach across the institutional, wealth management and advisory markets in the UK, enhanced distribution in continental Europe and a growing profile among consumers.
We will be enhancing our fund offering further through new launches where we have the expertise or hires and acquisitions where we do not. For example, we will launch the GF Water and Agriculture and the UK Micro Cap funds over the next few months.
This all means we are very well positioned to take advantage of the well known long-term opportunities for fund management companies and to succeed in continuing to grow the company.
Results
Adjusted profit before tax was £5.907 million (2014: £5.095 million) an increase of 16% compared to last year, see note 5 below for a reconciliation of adjusted profit before tax.
Adjusted basic earnings per share of 10.82 pence (2014: 9.73 pence per share) an increase of 11% and Adjusted diluted earnings per share of 10.35 pence per share (2014: 9.35 pence per share) an increase of 11%.
Profit before tax of £4.235 million (2014: £3.236 million) includes a loss of £1.672 million (2014: £1.859 million) of Adjustments.
Dividend
In accordance with the Company's dividend policy, the Board is declaring an interim dividend of 3.0 pence per share (2014: 2.0 pence per share), which will be payable on 17 December 2015 to shareholders who are on the register as at 20 November 2015, the shares going ex-dividend on 19 November 2015.
Assets under management
On 30 September 2015, our assets under management ("AuM") stood at £4,421 million and were broken down by type and process as follows:-
Process |
Total |
Institutional |
UK Retail |
MPS* |
Offshore Funds |
|
(£m) |
(£m) |
(£m) |
(£m) |
(£m) |
Cashflow Solution |
774 |
529 |
227 |
- |
18 |
Economic Advantage |
2,272 |
89 |
2,145 |
- |
38 |
Macro-Thematic |
974 |
360 |
601 |
- |
13 |
Global Credit |
34 |
- |
- |
- |
34 |
Asia |
43 |
- |
43 |
- |
- |
Structural Opportunities |
16 |
- |
- |
- |
16 |
Multi-Asset |
261 |
97 |
- |
164 |
- |
Indexed |
47 |
- |
47 |
- |
- |
Total |
4,421 |
1,075 |
3,063 |
164 |
119 |
* Managed Portfolio Services are where we act as discretionary fund manager to a range of model portfolios which are marketed to advisory intermediates in the UK.
AuM as at close of business on 6 November 2015 were £4,618 million.
Fund Flows
Liontrust has recorded net inflows of £110 million over the six months to 30 September 2015 (2014: £284 million).
A reconciliation of fund flows and AuM over the half year is as follows:-
|
Total |
Institutional |
UK Retail |
MPS* |
Offshore Funds |
|
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
Opening AuM - 1 April 2015 |
4,494 |
1,161 |
3,092 |
156 |
85 |
|
|
|
|
|
|
Net flows |
110 |
(48) |
104 |
17 |
37 |
|
|
|
|
|
|
Market and Investment performance |
(183) |
(38) |
(133) |
(9) |
(3) |
|
|
|
|
|
|
Closing AuM - 30 September 2015 |
4,421 |
1,075 |
3,063 |
164 |
119 |
* Managed Portfolio Services are where we act as discretionary fund manager to a range of model portfolios which are marketed to advisory intermediates in the UK.
Fund Performance (Quartile ranking) and Awards
The strength of Liontrust's fund management capability is shown by the fact that all bar one of its actively managed unit trust funds have outperformed the average fund in their respective Investment Association sectors since launch or since the fund managers were appointed to 30 September 2015.
|
Quartile ranking - 1 year |
Quartile ranking - 3 year |
Quartile ranking - 5 year |
Quartile ranking - Since Manager tenure |
Launch / Manager appointed |
Liontrust UK Growth Fund |
2 |
3 |
2 |
2 |
25/03/2009 |
Liontrust Special Situations Fund |
2 |
3 |
1 |
1 |
10/11/2005 |
Liontrust UK Smaller Companies Fund |
1 |
2 |
1 |
1 |
08/01/1998 |
Liontrust European Growth Fund |
2 |
4 |
3 |
1 |
15/11/2006 |
Liontrust Global Income Fund |
4 |
- |
- |
4 |
03/07/2013 |
Liontrust Asia Income Fund |
2 |
2 |
- |
2 |
05/03/2012 |
Liontrust Macro Equity Income Fund |
3 |
2 |
3 |
1 |
31/10/2003 |
Liontrust Macro UK Growth Fund |
2 |
2 |
2 |
1 |
01/08/2002 |
Source: Financial Express, total return, bid to bid, to 30 September 2015 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.
Outlook
This time last year, I wrote about the uncertainty facing UK investors from the upcoming General Election in May 2015. A year on and investors face great uncertainty as governments and central banks continue to grapple with the challenge of how to generate sustainable economic growth and will they or won't they raise interest rates.
As I have written before, we focus on managing money according to our robust and distinct investment processes so it gives our clients certainty over how we will invest their savings even if everything else is unclear. This will continue to stand us in good stead over the coming months and years.
Adrian Collins, Chairman
Consolidated Statement of Comprehensive Income
Six months ended 30 September 2015
|
|
|
Six |
Six |
Year |
|
|
|
months to |
months to |
ended |
|
|
|
30-Sep-15 |
30-Sep-14 |
31-Mar-15 |
|
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
Notes |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
3 |
18,708 |
15,846 |
36,821 |
Cost of sales |
|
|
(26) |
(31) |
(57) |
Gross profit |
|
|
18,682 |
15,815 |
36,764 |
|
|
|
|
|
|
Realised profit on sale of financial assets |
|
|
- |
- |
2 |
Administration expenses |
|
4 |
(14,455) |
(12,593) |
(29,522) |
Operating profit from Continuing Operations |
|
|
4,227 |
3,222 |
7,244 |
|
|
|
|
|
|
Interest receivable |
|
|
8 |
14 |
21 |
|
|
|
|
|
|
Profit before tax from Continuing Operations |
|
|
4,235 |
3,236 |
7,265 |
|
|
|
|
|
|
Taxation |
|
6 |
(916) |
(48) |
(1,058) |
|
|
|
|
|
|
Profit for the period |
|
|
3,319 |
3,188 |
6,207 |
|
|
|
|
|
|
Total comprehensive income |
|
|
3,319 |
3,188 |
6,207 |
|
|
|
|
|
|
|
|
|
Pence |
Pence |
Pence |
|
|
|
|
|
|
Basic earnings per share |
|
7 |
7.60 |
7.71 |
14.61 |
Diluted earnings per share |
|
7 |
7.27 |
7.41 |
13.58 |
Consolidated Balance Sheet
As at 30 September 2015
|
|
|
30-Sep-15 |
30-Sep-14 |
31-Mar-15 |
|
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
Notes |
£'000 |
£'000 |
£'000 |
Assets |
|
|
|
|
|
Non current assets |
|
|
|
|
|
Intangible assets |
|
8 |
3,774 |
6,222 |
4,998 |
Property, plant and equipment |
|
|
278 |
236 |
277 |
Deferred tax assets |
|
|
1,076 |
1,180 |
1,088 |
|
|
|
5,128 |
7,638 |
6,363 |
Current assets |
|
|
|
|
|
Trade and other receivables |
|
|
18,951 |
24,972 |
32,405 |
Financial assets |
|
9 |
668 |
732 |
242 |
Cash and cash equivalents |
|
|
16,176 |
12,903 |
16,393 |
Total current assets |
|
|
35,795 |
38,607 |
49,040 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
|
|
(16,587) |
(24,570) |
(30,969) |
Corporation tax payable |
|
|
(1,007) |
- |
(686) |
Total current liabilities |
|
|
(17,594) |
(24,570) |
(31,655) |
|
|
|
|
|
|
Net current assets |
|
|
18,201 |
14,037 |
17,385 |
|
|
|
|
|
|
Net assets |
|
|
23,329 |
21,675 |
23,748 |
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
Ordinary shares |
|
|
454 |
454 |
454 |
Share premium |
|
|
17,692 |
17,692 |
17,692 |
Capital redemption reserve |
|
|
19 |
19 |
19 |
Retained earnings |
|
|
7,309 |
13,285 |
11,395 |
Own shares held |
|
|
(2,145) |
(9,775) |
(5,812) |
|
|
|
|
|
|
Total equity |
|
|
23,329 |
21,675 |
23,748 |
Consolidated Cash Flow Statement
Six months ended 30 September 2015
|
Six |
Six |
Year |
|
months to |
months to |
ended |
|
30-Sep-15 |
30-Sep-14 |
31-Mar-15 |
|
(unaudited) |
(unaudited) |
(audited) |
|
£'000 |
£'000 |
£'000 |
|
|
|
|
Cash flows from operating activities |
|
|
|
Cash inflow from operations |
20,570 |
20,634 |
41,411 |
Cash outflow from operations |
(15,438) |
(17,626) |
(33,477) |
Cash outflow from changes in unit trust receivables and payables |
(677) |
(2,728) |
(2,964) |
Net cash from operations |
4,455 |
280 |
4,970 |
|
|
|
|
Interest received |
8 |
16 |
21 |
Tax paid |
(583) |
(658) |
(657) |
Net cash from/(used in) operating activities |
3,880 |
(362) |
4,334 |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of property and equipment |
(57) |
(12) |
(103) |
Purchase of ICI's |
(207) |
(461) |
(694) |
Purchase of seeding investments |
(74) |
(163) |
(180) |
Sale of seeding investments |
- |
- |
4 |
Net cash used in investing activities |
(338) |
(636) |
(973) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Issue of new shares |
- |
30 |
30 |
Purchase of own shares |
(1,150) |
(543) |
(553) |
Dividends paid |
(2,609) |
(859) |
(1,718) |
Net cash used in financing activities |
(3,759) |
(1,372) |
(2,241) |
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
(217) |
(2,370) |
1,120 |
Opening cash and cash equivalents* |
16,393 |
15,273 |
15,273 |
Closing cash and cash equivalents |
16,176 |
12,903 |
16,393 |
* Cash and cash equivalents consists only of cash balances.
Consolidated Statement of Change in Equity
Six months ended 30 September 2015
|
|
Share |
Share |
Capital |
Retained |
Own shares |
Total |
|
|
capital |
premium |
redemption |
earnings |
held |
Equity |
|
|
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
Balance at 1 April 2015 brought forward |
424 |
17,692 |
19 |
11,395 |
(5,812) |
23,748 |
|
|
|
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
3,319 |
- |
3,319 |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
- |
- |
- |
3,319 |
- |
3,319 |
|
|
|
|
|
|
|
|
|
Dividends paid |
|
- |
- |
- |
(2,609) |
- |
(2,609) |
|
|
|
|
|
|
|
|
Shares issued |
|
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
Purchase of own shares |
- |
- |
- |
- |
(1,150) |
(1,150) |
|
|
|
|
|
|
|
|
|
Purchase of ICI's |
|
- |
- |
- |
(5,024) |
4,817 |
(207) |
|
|
|
|
|
|
|
|
Equity share options issued |
- |
- |
- |
228 |
- |
228 |
|
|
|
|
|
|
|
|
|
Balance at 30 September 2015 |
454 |
17,692 |
19 |
7,309 |
(2,145) |
23,329 |
Consolidated Statement of Change in Equity
Six months ended 30 September 2014
|
|
Share |
Share |
Capital |
Retained |
Own shares |
Total |
|
|
capital |
premium |
redemption |
earnings |
held |
Equity |
|
|
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
Balance at 1 April 2014 brought forward |
424 |
17,692 |
19 |
14,263 |
(12,227) |
20,171 |
|
|
|
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
3,188 |
- |
3,188 |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
- |
- |
- |
3,188 |
- |
3,188 |
|
|
|
|
|
|
|
|
|
Dividends paid |
|
- |
- |
- |
(859) |
- |
(859) |
|
|
|
|
|
|
|
|
Shares issued |
|
30 |
- |
- |
- |
- |
30 |
|
|
|
|
|
|
|
|
Purchase of own shares |
- |
- |
- |
- |
(543) |
(543) |
|
|
|
|
|
|
|
|
|
Purchase of ICI's |
|
- |
- |
- |
(3,456) |
2,995 |
(461) |
|
|
|
|
|
|
|
|
Equity share options issued |
- |
- |
- |
149 |
- |
149 |
|
|
|
|
|
|
|
|
|
Balance at 30 September 2015 |
454 |
17,692 |
19 |
13,285 |
(9,775) |
21,675 |
Consolidated Statement of Change in Equity
Year ended 31 March 2015
|
|
Share |
Share |
Capital |
Retained |
Own shares |
Total |
|
|
capital |
premium |
redemption |
earnings |
held |
Equity |
|
|
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
£ '000 |
Balance at 1 April 2014 brought forward |
424 |
17,692 |
19 |
14,263 |
(12,227) |
20,171 |
|
|
|
|
|
|
|
|
|
Profit for the period |
- |
- |
- |
6,207 |
- |
6,207 |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
- |
- |
- |
6,207 |
- |
6,207 |
|
|
|
|
|
|
|
|
|
Dividends paid |
|
- |
- |
- |
(1,718) |
- |
(1,718) |
|
|
|
|
|
|
|
|
Shares issued |
|
30 |
- |
- |
- |
- |
30 |
|
|
|
|
|
|
|
|
Purchase of own shares |
- |
- |
- |
- |
(553) |
(553) |
|
|
|
|
|
|
|
|
|
Purchase of ICI's |
|
- |
- |
- |
(7,662) |
6,968 |
(694) |
|
|
|
|
|
|
|
|
Equity share options issued |
- |
- |
- |
305 |
- |
305 |
|
|
|
|
|
|
|
|
|
Balance at 31 March 2015 |
454 |
17,692 |
19 |
11,395 |
(5,812) |
23,748 |
Notes to the Financial Statements
1. Principal accounting policies
This Half Yearly Report is unaudited and does not constitute statutory accounts within the meaning of s434 of the Companies Act 2006. The financial information for the half years ended 30 September 2015 and 2014 has not been audited or reviewed by the auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information. The statutory accounts for the year ended 31 March 2015, which were prepared in accordance with International Financial Reporting Standards ("IFRS"), comprising standards and interpretations approved by either the International Accounting Standards Board or the International Financial Reporting Interpretations Committee or their predecessors, as adopted by the European Union, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, have been delivered to the Registrar of Companies. The auditors' opinion on these accounts was unqualified and did not contain a statement made under s498 of the Companies Act 2006.
The financial statements have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority ("DTR") and with IAS 34 'Interim Financial Reporting'.
The accounting policies applied in this Half Yearly Report are consistent with those applied in the Group's most recent annual accounts.
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. Revenue from Continuing Operations
|
Six |
Six |
Year |
|
months to |
months to |
ended |
|
30-Sep-15 |
30-Sep-14 |
31-Mar-15 |
|
(unaudited) |
(unaudited) |
(audited) |
|
£'000 |
£'000 |
£'000 |
Revenue |
|
|
|
- Revenue |
18,666 |
15,846 |
33,631 |
- Performance fee revenue |
42 |
- |
3,190 |
Total Revenue |
18,708 |
15,846 |
36,821 |
4. Administration expenses from Continuing Operations
|
Six |
Six |
Year |
|
months to |
months to |
ended |
|
30-Sep-15 |
30-Sep-14 |
31-Mar-15 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
Employee related expenses |
|
|
|
Director and employee costs |
1,886 |
1,339 |
3,145 |
Pension costs |
101 |
65 |
141 |
Share incentivisation expense |
240 |
206 |
285 |
Severance compensation |
6 |
16 |
31 |
|
2,233 |
1,626 |
3,602 |
Non employee related expenses |
|
|
|
Members' drawings charged as an expense |
6,429 |
5,967 |
14,502 |
Restructuring (acquisition related and other) |
22 |
223 |
1,840 |
Members' share incentivisation expense |
123 |
149 |
277 |
Depreciation, Intangible asset amortisation and impairment |
1,281 |
1,265 |
2,539 |
Financial services Compensation Scheme Levy |
- |
- |
(135) |
Other administration expenses |
4,367 |
3,363 |
6,897 |
Total administration expenses |
14,455 |
12,593 |
29,522 |
5. Adjusted profit before tax
Adjusted profit before tax is disclosed in order to give shareholders a clearer indication of the profitability of the Group. The adjusted profit or loss is the total of Group profit or loss excluding the following items:
Non-cash items which include depreciation, intangible asset amortisation and IFRS2 related expenses; and
non-recurring items which include cost reduction expenses, restructuring costs, acquisition related costs, integration costs, share incentivisation expenses, severance compensation and Financial Services Compensation Scheme Interim Levy.
Adjusted profit before tax is reconciled in the table below:
|
Six |
Six |
Year |
|
months to |
months to |
ended |
|
30-Sep-15 |
30-Sep-14 |
31-Mar-15 |
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
Profit for the period |
3,319 |
3,188 |
6,207 |
Taxation on Continuing Operations |
916 |
48 |
1,058 |
Profit before tax from Continuing Operations |
4,235 |
3,236 |
7,265 |
|
|
|
|
Employee related share incentivisation expense |
240 |
206 |
285 |
Member related share incentivisation expense |
123 |
149 |
277 |
Severance compensation |
6 |
16 |
31 |
Professional services (restructuring, acquisition related and other) |
22 |
223 |
1,840 |
Convertible Loan repurchase |
- |
- |
(135) |
Depreciation, Intangible asset amortisation and impairment |
1,281 |
1,265 |
2,539 |
Adjustments |
1,672 |
1,859 |
4,837 |
Adjusted profit before tax |
5,907 |
5,095 |
12,102 |
|
|
|
|
Interest receivable |
(8) |
(14) |
(21) |
|
|
|
|
Adjusted operating profit |
5,899 |
5,081 |
12,081 |
|
|
|
|
Adjusted basic earnings per share* |
10.82 |
9.73 |
22.51 |
Adjusted diluted earnings per share* |
10.35 |
9.35 |
20.92 |
* Assumes a tax rate of 20% (2014: 21%)
6. Taxation
The half yearly tax charge has been calculated at the estimated full year effective UK corporation tax rate of 20% (2014: 21%).
7. 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 six months ended 30 September 2015 was 43,658,542 (30 September 2014: 41,373,566, 31 March 2015: 42,472,053). 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 is 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 during the six months ended 30 September 2015. The adjusted weighted average number of Ordinary Shares so calculated for the period was 45,656,303 (30 September 2014: 43,047,922, 31 March 2015: 45,700,575). This is reconciled to the actual weighted number of Ordinary Shares as follows:
|
30-Sep-15 |
30-Sep-14 |
31-Mar-15 |
Weighted average number of Ordinary Shares |
43,658,542 |
41,373,566 |
42,472,053 |
|
|
|
|
Weighted average number of dilutive Ordinary shares under option: |
|
|
|
|
|
|
|
- to Liontrust Senior Incentive Plan |
- |
1,485,715 |
745,012 |
- to Liontrust Incentive Plan |
- |
132,789 |
66,587 |
- to Liontrust Option Plan |
44,126 |
38,129 |
39,358 |
- to the Liontrust Members Incentive Plan |
1,550,765 |
- |
2,346,713 |
- to the Deferred Bonus and Variable Allocation Plan |
402,870 |
17,723 |
30,852 |
|
|
|
|
Adjusted weighted average number of Ordinary Shares |
45,656,303 |
43,047,922 |
45,700,575 |
8. Intangible assets
Intangible assets represent investment management contracts that have been capitalised upon acquisition and are amortised on a straight-line basis over a period of 5 years. The intangible asset on the balance sheet represents investment management contracts as follows:
|
30-Sep-15 |
30-Sep-14 |
31-Mar-15 |
|
£'000 |
£'000 |
£'000 |
|
|
|
|
Contracts acquired from Walker Crips Asset Managers Limited |
3,774 |
6,222 |
4,998 |
|
3,774 |
6,222 |
4,998 |
9. Financial Assets
Assets held at fair value through profit and loss:
The Group's assets held at fair value through profit and loss represent units in the UK Authorised unit trusts held in the manager's box and are valued at bid price.
Assets held as available-for-sale
The Group's assets held as available-for-sale represent shares in the Liontrust GF Global Strategic Bond Fund, the Liontrust GF Special Situations Fund, the GF Macro Equity Income Fund, the GF European Strategic Equity Fund, the GF UK Growth Fund and the GF Global Income Fund (all sub-funds of Liontrust Global Funds PLC) and are valued at bid price).
10. Related party transactions
During the six months to 30 September 2015 the Group received fees from unit trusts under management of £16,291,000 (2014: £16,547,000). Transactions with these unit trusts comprised creations of £215,667,000 (2014: £342,262,000) and liquidations of £115,711,000 (2014: £159,584,000). Directors can invest in unit trusts managed by the Group on commercial terms that are no more favourable than those available to staff in general. As at 30 September 2015 the Group owed the unit trusts £12,764,000 (2014: £12,017,000) in respect of unit trust creations and was owed £13,391,000 (2014: £5,194,000) in respect of unit trust cancellations and fees.
As at 30 September 2015 members owed Liontrust Fund Partners LLP and Liontrust Investment Partners LLP (the 'LLPs') £706,000 (2014: £216,000). These loans were provided in connection with the relevant members' duties as a member of the relevant LLP.
During the six months to 30 September 2015 remuneration paid to key decision makers (the Executive Directors) was £449,000 (2014: £478,000).
11. Key risks
The Directors have identified the risks and uncertainties that affect the Group's business and believe that they will be substantially the same for the second half of the year as the current risks as identified in the 2015 Annual Report. These can be broken down into risks that are within the management's influence and risks that are outside it.
Risks that are within management's influence include areas such as the expansion of the business, prolonged periods of under-performance, loss of key personnel, human error, poor communication and service leading to reputational damage and fraud.
Risks outside the management's influence include falling markets, terrorism, a deteriorating UK economy, investment industry price competition and hostile takeovers.
Management monitor all risks to the business, they record how each risk is mitigated and have warning flags to identify increased risk levels. Management recognise the importance of risk management and view it as an integral part of the management process which is tied into the business model and is described further in the Risk management and internal control section on page 26 of the 2015 Annual Report and Note 2 ""Financial risk management"" on page 58 of the 2015 Annual Report.
12. Directors' responsibilities
The Directors confirm that this condensed set of financial statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that the Half Yearly Report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.
By Order of the Board
John Ions Vinay Abrol
Chief Executive Chief Operating Officer and Chief Financial Officer
9 November 2015
Forward Looking Statements
This report 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. Nothing in this announcement should be construed as a profit forecast.
END