Full Year Results

RNS Number : 7130F

Liontrust Asset Management PLC

20 June 2012

 



LIONTRUST ASSET MANAGEMENT PLC

FULL YEAR RESULTS FOR THE YEAR ENDED

31 MARCH 2012

Liontrust Asset Management PLC ("Liontrust", the "Company" or "the Group"), the independent specialist fund management group, today announces its results for the year ended 31 March 2012.

Results:

·     Adjusted profit before tax of £1.0 million (2011: loss of £1.7 million) (see note 5)

·     Loss for the year of £0.2 million (2011: £4.6 million)

·     54% increase in revenues from Continuing Operations compared to last year

Assets under management:

·     On 31 March 2012, assets under management were £1.5 billion (2011: £1.3 billion)

·     Close of business on 18 June 2012, assets under management were £2.1 billion

Fund flows:

·     Net inflows for the year to 31 March 2012 of £152 million (2011: £81 million)

·     In the current quarter from 1 April 2012 to 18 June 2012, Liontrust has recorded net inflows of £94 million

Commenting on the results, John Ions, Chief Executive, said:

"This has been another year of good progress for Liontrust. At a challenging time for investment management companies, we have built excellent foundations to enable the Group to continue to grow in the future.

"Liontrust has increased revenues from Continuing Operations by 54% and returned to profitability (on an adjusted basis). Non people costs were reduced by 5% during the year, reflecting tight cost controls by the Group.

"We enjoyed net inflows in all four quarters in the year, totalling £152 million. This has extended our sequence of net positive sales to seven successive quarters and net inflows have continued into the new financial year: in the current quarter from 1 April 2012 to 18 June 2012, Liontrust has recorded net inflows of £94 million.

"Our assets under management grew from £1.343 billion to £1.529 billion at the end of March 2012 and to £2.108 billion at the close of business on 18 June. The acquisitions of Occam and Walker Crips Asset Managers Limited have broadened our fund management range and distribution capability. 

"This has been achieved despite the ongoing global economic uncertainty and the fact that either UK All Companies or Europe Excluding UK was the least popular retail sector on a net basis in five out of the six months to the end of March 2012. The trend continued with Europe Excluding UK being the worst selling retail sector in April 2012.

"Liontrust's success is a testament to a number of factors; primarily our continued excellent fund performance. This is shown by the fact that 89% of Liontrust's unit trust funds (excluding Liontrust FTSE 100 Tracker Fund (index fund) and Liontrust Asia Income Fund (which was launched in March 2012)) outperformed their respective IMA sectors in the 12 months to 31 March 2012 and since launch/manager change (weighted by number of funds).

"It also reflects the high quality of people across the business, the enhanced profile of Liontrust, our fund managers and products, the greater engagement we have now with our clients and the broader client base we have built.

"We are confident we will continue to grow the business in the future. We have one of the strongest ranges of UK equity funds and teams, we have broadened into Asia and Emerging Markets equities, we have expanded our sales capability in the UK and internationally and we are well positioned for the changes to the distribution market following the implementation of RDR."

For further information please contact:

Liontrust Asset Management                                                     020 7412 1700

John Ions                                                                                             www.liontrust.co.uk

Vinay Abrol

Simon Hildrey (Head of Marketing & Communications)

Singer Capital Markets Limited                                                 020 3205 7500

Jonathan Marren

Jenny Wyllie

Chairman's Statement

Introduction

I am very pleased to report that Liontrust returned to profitability (on an adjusted basis) this year. This reflects a growth in assets under management ("AuM") to £1.5 billion at the end of March 2012, an increase of 14%, and increased performance fees. We have enjoyed a growth in revenues from Continuing Operations of 54% and seven successive quarters of net inflows. I am also pleased that we have continued to deliver strong long-term relative fund performance, and continue to keep costs under control.

Liontrust has been strengthened through two acquisitions. In March 2012, we announced the proposed acquisition of Walker Crips Asset Managers Limited ("WCAM"), which adds a further complementary UK equity investment team to Liontrust. Stephen Bailey and Jan Luthman are highly rated managers with an excellent track record and a strong pedigree in the key UK Equity Income sector. The feedback from the client base following the announcement has been extremely encouraging. We are confident they will benefit from stronger distribution at Liontrust with access to platforms and other distributors they were not available through, thereby making their funds accessible to a wider audience. The acquisition of WCAM was completed on 12 April 2012, increasing Liontrust's AuM to over £2 billion and giving us one of the strongest ranges of UK equity funds and teams. 

We have announced two other transactions this year. These were the sale of our Credit business to Avoca Capital Holdings for 3.75% of AuM and the acquisition of the fund management business of Occam Investment Management (Malta) Limited, Occam Asset Management LLP and Occam Investment Services Limited (together "Occam"), expanding our fund management capability into Asia and Emerging Markets equities.

I am delighted with the speed of integration and the calibre of people that have joined us from Occam and WCAM. The recent soft launch of the Liontrust Asia Income Fund has been well received and I am confident we will grow assets strongly in this fund going forward. A high quality emerging markets team also joined us from Occam, which is another asset class for which we believe there will be strong demand in the future.  

As previously stated, the Group intends to build the business organically and through acquiring new fund management teams. The Group continues to have a sound platform to evaluate opportunities to accelerate further growth in AuM. However, the focus for the coming year is on capitalising on our excellent investment performance, in particular grow AuM for our Asia and Emerging Markets teams, and successfully integrate the WCAM business.

We are also very mindful of the ever changing regulatory environment and the challenges that the Retail Distribution Review ("RDR") will bring both to the Group as a product provider and to the professional advisers who use our funds. Liontrust has actively participated in the lengthy consultation process and generally welcomes the introduction of RDR at the start of 2013.

As an active, performance driven investment business, Liontrust is well positioned to make the RDR transition. In 2010, the Group undertook a full review of our fund range and structure which resulted in the introduction of non-commission paying unit classes (in October 2010) specifically for the increasing number of intermediary clients who have already adopted a fee-based business model.

Results

Loss for the year was £0.237 million (2011: loss of £4.552 million).

Adjusted profit before tax of £1.001 million after adding back expenses for share incentivisation, severance compensation, gain on the sale of the credit business, acquisitions related costs, Global equities closure costs, cost reduction and restructuring, members advanced drawings, depreciation and intangible asset amortisation, and the Financial Services Compensation Scheme Interim Levy (2011: Adjusted loss before tax of £1.663 million).

Performance fees of £3.383 million were earned in the financial year to 31 March 2012 (2011: £1.330 million). Revenues from Continuing Operations increased by 54% compared to last year. Revenues from Continuing and Discontinued Operations increased by 41%, reflecting the impact of increased AuM and the performance fees.

Assets under management

On 31 March 2012, our AuM stood at £1,529 million and were broken down by type and process as follows:-

Process	Total	Institutional	UK Retail	Offshore Funds
	£m	£m	£m	£m
Cashflow Solution	836	388	418	30
Economic Advantage	616	-	616	-
Asia	14	-	2	12
Emerging Markets	11		-	11
Indexed	52	-	52	-
Total	1,529	388	1,088	53

On 12 April 2012 Liontrust completed the acquisition of WCAM which added a further £581 million of assets to Group AuM.

AuM as at close of business on 18 June 2012 were £2,108million.

Fund Flows

A reconciliation of fund flows and AuM over the year is as follows:-

	Total	Institutional	UK Retail	Offshore Funds
	£m	£m	£m	£m
Opening AuM - 1 April 2011	1,343	395	843	105
Inflows	534	70	444	20
Outflows	(382)	(75)	(236)	(71)
Net flows *	152	(5)	208	(51)
Disposal of the Credit business **	(85)	-	-	(85)
Acquisition of Occam ***	84	-	-	84
Market movement	35	(2)	37	-
Closing AuM - 31 March 2012	1,529	388	1,088	53

* - Excludes credit business related flows post-13 April 2011 announcement of the sale of the credit business

** - Completed on 30 June 2011, includes credit business related outflows of £15million over the period 13 April 2011 to 30 June 2011

** - Completed on 4 October 2011

In the current quarter from 1 April 2012 to 18 June 2012, Liontrust has recorded net inflows of £94 million.

Outlook

Liontrust is well positioned to continue to expand over the next year. We have strong fund performance, we have expanded our fund management capability into new asset classes, we have broadened our client base in the UK and internationally and we have enhanced the profile of the business, our fund managers and our products. We are not only well positioned for the changes to the distribution market following the implementation of RDR at the start of 2013 but see it as an opportunity given our strong investment processes and performance.

Our focus remains on capitalising on the potential of our existing range of funds through our strong fund performance, broadened product range and enhanced distribution capability. We will expand our fund management capability further when the right opportunities present themselves.

Adrian Collins

Chairman

19 June 2012

Extract from the Chief Executive's Business Review

Fund performance

UK Retail Funds

% returns (Quartile Ranking) to 31 March 2012

	1 year	3 years	5 years	Since Manager tenure	Manager change/launch date
The Liontrust Economic Advantage
UK Growth Fund (IMA UK All Companies)	10.2% (1)	94.9% (1)	-	94.0% (1)	25.03.09
Special Situations Fund (IMA UK All Companies)	12.6% (1)	135.0% (1)	56.0% (1)	122.0% (1)	11.11.05
UK Smaller Companies Fund (IMA UK Smaller Companies)	9.9% (1)	122.6% (2)	34.8% (1)	332.7% (1)	08.01.98
The Liontrust Cashflow Solution
Income Fund (IMA UK Equity Income)	2.9% (2)	68.9% (2)	-	69.7% (2)	25.03.09
European Growth Fund (IMA Europe ex UK)	-9.4% (2)	64.3% (1)	18.2% (1)	31.9% (1)	15.11.06
European Absolute Return Fund (IMA Absolute Return)	2.7% (1)	-	-	0.5% (4)	09.07.09
The Liontrust Macro Equity
CF Liontrust Macro Equity Income Fund (IMA UK Equity Income)	2.6% (2)	69.8% (1)	16.6% (1)	122.9% (1)	31.10.03
CF Liontrust Macro UK Growth Fund (IMA UK All Companies)	2.2% (2)	68.5% (2)	19.34% (1)	166.3% (1)	07.03.02
CF Liontrust Macro UK High Alpha Fund (IMA UK All Companies)	-2.1% (4)	61.8% (3)	17.9% (1)	17.3% (2)	27.10.03
The Liontrust Asia Equity
Asia Income Fund (IMA Asia Pacific ex Japan)	-	-	-	-1.3% (4)	05.03.12
Index Fund
FTSE 100 Tracker Fund (IMA UK All Companies)	0.3% (3)	63.2% (3)	8.5% (2)	168.7% (3)	14.07.95

Offshore Funds

% Returns to 31 March 2012

	1 year	3 years	5 years	Since Manager tenure	Manager change/launch date
The Liontrust Cashflow Solution
European Absolute Alpha Fund (Dublin UCITS fund (Euro NAV))	-	-	-	-3.0%	15.02.12
Sorbus Fund (Cayman hedge fund (Euro NAV))	-	-	-	-6.6%	05.10.11
Pan European Fund (Dublin UCITS fund (Euro NAV))	-	-	-	17.5%	05.10.11
The Liontrust Asia Equity
Asia Fund (Dublin UCITS fund (USD NAV))	-15.2%	62.0%	-	15.4%*	06.12.06
The Liontrust Emerging Markets Equity
Emerging Markets Absolute Return Fund (Dublin UCITS fund (USD NAV))	-18.3%	-	-	-1.4%**	06.12.06

 * Note: Data for the full manager tenure period is not available, data is given for the period from 10.09.08

** Note: Data for the full manager tenure period is not available, data is given for the period from 23.04.09

It is important to remember that the price of units, and the income from them, can fall as well as rise and are not guaranteed and that past performance is not a guide to the future.

Because of the risks involved, investment in hedge funds and absolute return funds is suitable only for investors who are able to bear the loss of a substantial portion or even all of the money they invest in the funds, who understand the high risks involved, believe that investment in the funds is suitable for them based on their investment objectives and financial needs. Investors are urged to seek independent professional advice on the implications of investing in the funds.

UK RETAIL FUNDSPerformance data source: Financial Express, Sterling terms, bid to bid basis, total return.  The issue of units may be subject to an initial charge, which will have an impact on the realisable value of the investment, especially in the short term. The Funds' Prospectus or Simplified Prospectus are available direct from Liontrust or from our website, www.liontrust.co.uk. 

OFFSHORE FUNDSPerformance data sources: Liontrust Investment Partners LLP.  Subscriptions must be made only on the basis of a prospectus, which is issued to authorised financial advisers and qualifying persons only.

Review of sales and marketing

We made good progress in sales and marketing during the financial year. The Group generated net inflows in every quarter, which led to a second successive year of net inflows of £152 million and our assets under management rising from £1,343 million to £1,529 million. The higher net inflows have come from a broader number of clients. Of the Group's funds under management, 71% come from the retail intermediary and private investor market while the rest is from institutional and international investors.

The net inflows are attributable to continued excellent fund performance and Liontrust achieving the sales and marketing goals set out in last year's Annual Report and Financial Statements.

Since launch or manager change to 31 March 2012, six of our ten actively managed unit trusts were in the first quartile of their respective sectors and of the other four funds, two were in the second quartile.

We have enhanced our level of engagement with clients and broadened our client base over the past year. We have sought to raise our profile across the institutional and intermediary market through a more proactive marketing strategy, including through advertising, press coverage, events, presentations and frequent client communications. This included around 120 clients attending our annual investment conference at The Savoy Hotel in January 2012.

This marketing activity has further developed the Liontrust brand, raised awareness of our strong fund performance, fund management teams and proprietary investment processes and explained how our funds are differentiated from their peers in their respective sectors.

Having completed the acquisition of Occam in October 2011, the Group launched the Asia Income Fund in March 2012, which is an asset class that we believe will generate increasing interest over the long term. This deal has diversified our fund management capability into emerging markets equities and enhanced our international sales team in continental Europe and other international markets. 

Retail Distribution Review

At the end of 2012 and after six long years of consultation and debate Liontrust, in common with the rest of the retail financial industry, will implement the Retail Distribution Review ("RDR"). RDR is the most significant change to the industry in a lifetime and is likely to impact the sales and marketing activity of every fund firm competing in the retail investment market.

RDR has been undertaken with the aim of:-

ü Improving the standard of advice by raising professional qualifications;

ü Banning commission payments in order to separate the cost of advice from the cost of products. Advisers are under an obligation to act in the best interests of each client;

ü Introducing the concept of Adviser charging whereby charges for services and advice are agreed between client and adviser only; and

ü Regaining trust of the investing public following a series of well publicised mis-selling cases.

At Liontrust we have actively participated in the lengthy consultation and as a consequence are well prepared for the challenges ahead. Our key client focus is on discretionary wealth managers and larger advisers who have already made the move away from the old "commission-based" model. Our active fund range is focused on the important areas of income and growth and, over the past two years, we have introduced a fund charging structure that is competitive and compatible with the market. Our fund performance continues to assist sales and we believe that our documented investment processes are sound, repeatable and scalable.

Whilst this may appear to be a "brave new world" the need for sound financial advice has never been greater and we believe that we offer products that are well suited to form the building blocks of clients' income or growth portfolios.

Acquisitions and disposals

During the year, Liontrust disposed of its credit business and acquired two fund management businesses:

ü On 12 April 2011, the Group entered into a conditional business purchase agreement for the sale of its credit business including its credit team to Avoca Capital Holdings, the sale completed on 30 June 2012 with Liontrust receiving £2.5 million in cash (excluding costs);

ü On 2 August 2011, the Group entered into a conditional agreement to purchase the fund management business of Occam Investment Management (Malta) Limited, Occam Asset Management LLP and Occam Investment Services Limited (together "Occam"). The purchase completed on 4 October 2011 with Liontrust paying Occam £1.9 million in cash and shares (excluding costs); and

ü On 13 March 2012, Liontrust entered into a conditional share purchase agreement with Walker Crips Group Plc to purchase the entire issued share capital of Walker Crips Asset Managers Limited. The purchase completed on 12 April 2012 with Liontrust paying Walker Crips Group Plc £12.7 million in cash, shares and convertible loan stock (excluding costs).

John Ions

Chief Executive

19 June 2012

Consolidated Statement of Comprehensive Income

for the year ended 31 March 2012

					Year	Year
					ended	ended
					31-Mar-12	31-Mar-11
				Notes	£'000	£'000
Continuing Operations
Revenue					13,714	8,929
Cost of sales					(76)	(80)
Gross profit					13,638	8,849
Realised gain on sale of financial assets					212	701
Administration expenses				2	(15,445)	(14,672)
Operating loss from Continuing Operations					(1,595)	(5,122)
Interest receivable					22	10
Loss before tax from Continuing Operations					(1,573)	(5,112)
Taxation					(250)	544
Loss for the year from Continuing Operations					(1,823)	(4,568)
Discontinued Operations
Realised gain on sale of credit business				3	1,569	-
Profit after tax for the year from Discontinued Operations (attributable to equity holders of the Company)				3	17	16
Loss for the year					(237)	(4,552)
Other comprehensive income:
Gain on financial assets net of tax					61	445
Realised gain taken to the statement of comprehensive income					(212)	(701)
Exchange differences on translating foreign operations					-	7
Other Comprehensive income for the year, net of tax					(151)	(249)
Total comprehensive income					(388)	(4,801)

					Pence	Pence
Continuing Operations
Basic earnings per share				4	(5.65)	(14.74)
Diluted earnings per share				4	(5.62)	(13.70)
Total
Basic earnings per share				4	(0.73)	(14.69)
Diluted earnings per share				4	(0.73)	(13.65)

Consolidated Balance Sheet

as at 31 March 2012

					31-Mar-12	31-Mar-11
					£'000	£'000
Assets
Non current assets
Intangible assets					1,100	600
Property, plant and equipment					121	123
Deferred tax assets					1,638	2,160
Total Non current assets					2,859	2,883
Current assets
Trade and other receivables					18,462	10,205
Financial assets					295	8,530
Cash and cash equivalents					12,388	4,157
Total Current assets					31,145	22,892
Liabilities
Current liabilities
Deferred tax liabilities					-	(57)
Trade and other payables					(16,932)	(10,277)
Accruals					(233)	(119)
Total Current liabilities					(17,165)	(10,453)
Net current assets					13,980	12,439
Net assets					16,839	15,322
Shareholders' equity attributable to owners of the parent
Ordinary shares					371	353
Share premium					11,552	10,272
Capital redemption reserve					15	15
Revaluation reserve					-	151
Retained earnings					17,073	16,703
Own shares held					(12,172)	(12,172)
Total equity					16,839	15,322

Consolidated Cash Flow Statement

for the year ended 31 March 2012

						Year	Year
						ended	ended
						31-Mar-12	31-Mar-11
						£'000	£'000
Cash flows from operating activities
Cash inflow from operations						14,351	11,447
Cash outflow from operations						(15,914)	(18,002)
Cash outflow from changes in unit trust receivables and payables						(754)	(601)
Net cash used in operations						(2,317)	(7,156)
Interest received						22	10
Tax received						1,035	263
Net cash used in operating activities						(1,260)	(6,883)
Cash flows from investing activities
Purchase of property and equipment						(41)	(50)
Sale of Seeding investments						7,966	703
Purchase of intangible asset						(2,166)	-
Sale of Credit business						2,434	-
Net cash generated from investing activities						8,193	653
Cash flows from financing activities
Purchase of minority interest shares						-	(2,654)
Issue of new shares						1,298	1,326
Net cash generated from/(used in) financing activities						1,298	(1,328)
Net increase/(decrease) in cash and cash equivalents						8,231	(7,558)
Effect of exchange rate changes						-	(7)
Opening cash and cash equivalents*						4,157	11,722
Closing cash and cash equivalents						12,388	4,157
* Cash and cash equivalents consist only of cash balances.

Consolidated Statement of Changes in Equity

for the year ended 31 March 2012

		Share	Share	Capital	Revaluation	Retained	Own shares	Total
		capital	premium	redemption		Earnings	Held	Equity
		£ '000	£ '000	£ '000	£ '000	£ '000	£ '000	£ '000
Balance at 1 April 2011 brought forward		353	10,272	15	151	16,703	(12,172)	15,322
Loss for the year		-	-	-	-	(237)	-	(237)
Net gains on available-for-sale financial assets net of tax		-	-	-	61	-	-	61
Amounts recycled through the Consolidated Statement of Comprehensive Income		-	-	-	(212)	-	-	(212)
Total comprehensive income for the year		-	-	-	(151)	(237)	-	(388)
Shares issued		18	1,280	-	-	-	-	1,298
Equity share options issued		-	-	-	-	607	-	607
Balance at 31 March 2012		371	11,552	15	-	17,073	(12,172)	16,839

Consolidated Statement of Changes in Equity

for the year ended 31 March 2011

		Share	Share	Capital	Revaluation	Retained	Own shares	Total
		capital	premium	redemption		Earnings	Held	Equity
		£ '000	£ '000	£ '000	£ '000	£ '000	£ '000	£ '000
Balance at 1 April 2010 brought forward		337	8,962	15	407	23,881	(12,172)	21,430
Loss for the year		-	-	-	-	(4,552)	-	(4,552)
Net gains on available-for-sale financial assets net of tax		-	-	-	445	-	-	445
Amounts recycled through the Consolidated Statement of Comprehensive Income		-	-	-	(701)	-	-	(701)
Gain on foreign exchange		-	-	-	-	7	-	7
Total comprehensive income for the year		-	-	-	(256)	(4,545)	-	(4,801)
Acquisition of minority interest shares		-	-	-	-	(2,654)	-	(2,654)
Shares issued		16	1,310	-	-	-	-	1,326
Equity share options issued		-	-	-	-	21	-	21
Balance at 31 March 2011		353	10,272	15	151	16,703	(12,172)	15,322

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 2011 and as detailed below.

a)    Adjusted profit or loss

The Group provides additional disclosure in the form of an Adjusted profit note (note 5 below) in order to provide shareholders with 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.            

The Group presents a reconciliation to the Profit for the year per the statutory financial information.  

b)    Discontinued operations

A discontinued operation is a component of an entity that has been disposed of and represents an identifiable significant line of business for the Group.

Any gain or loss from disposal of a business, together with the results of these operations until the date of disposal, is reported separately as discontinued operations. The financial information of discontinued operations is excluded from the respective captions in the Consolidated financial statements and related notes for all years presented.        

2.            Administration expenses - Continuing Operations

	Year ended	Year ended
	31-Mar-12	31-Mar-11
	£'000	£'000
Employee related expenses
Director and employee costs	4,533	4,750
Share incentivisation expense	621	433
Severance compensation	147	1,458
	5,301	6,641
Non employee related expenses
Members drawings charged as an expense	3,458	1,691
Global equities team closure costs	-	284
Acquisition related expenses	690	-
Cost reduction and restructuring program	515	892
Depreciation and Intangible asset amortisation	1,109	238
Financial Services Compensation Scheme Levy	-	414
Other administration expenses	4,372	4,512
	15,445	14,672

3.            Discontinued Operations

On 12 April 2011, the Group entered into a conditional business purchase agreement for the sale of its credit business including its credit team to Avoca Capital Holdings (the "Disposal"), the sale completed on 30 June 2011. The two funds that the credit team managed, the Liontrust Credit Absolute Return Fund and the Liontrust Credit Fund were transferred to Avoca. The total consideration for the Disposal was 3.75% of the assets under management transferred. The gain on this has been calculated as follows:                                                                                       

		Year ended	Year ended
		31-Mar-12	31-Mar-11
		£'000	£'000
Proceeds received from sale		2,490	-
Costs associated with sale		(56)	-
Cost of intangible asset held on balance sheet		(600)	-
Taxation on gain		(265)	-
Realised gain on sale of credit business		1,569	-
Analysis as a result of Discontinued Operations is as follows:
		Year ended	Year ended
		31-Mar-12	31-Mar-11
		£'000	£'000
Revenue		275	989
Member and Employee expenses		(223)	(853)
Administrative expenses		(29)	(114)
Tax		(6)	(6)
Profit after tax from Discontinued Operations		17	16

4.            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 32,268,104 for the year (2011: 30,987,024). 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 2012. The adjusted weighted average number of Ordinary Shares so calculated for the year was 32,465,594 (2011: 33,337,489).                                                                       

5.            Adjusted profit/(loss)

Adjusted profit or loss (as explained in note 1(a) reconciled in the table below:                             

		Year ended	Year ended
		31-Mar-12	31-Mar-11
		£'000	£'000
Loss for the year		(237)	(4,552)
Taxation on Continuing Operations		250	(544)
Taxation on Discontinued Operations		271	6
Profit/(loss) before tax from Continuing and Discontinued Operations		284	(5,090)
Share incentivisation expense		621	433
Severance compensation		147	1,458
Gain on sale of credit business		(1,834)	-
Acquisition related costs		690	-
Global equities team closure costs		-	284
Cost reduction and restructuring programme		515	892
Members' advance drawings		(531)	(292)
Depreciation and Intangible asset amortisation		1,109	238
Financial Services Compensation Scheme Levy		-	414
Adjustments		717	3,427
Adjusted profit/(loss) before tax		1,001	(1,663)
Interest receivable		(22)	(10)
Adjusted operating profit/(loss)		979	(1,673)

6.            Post balance sheet date event

On 13 March 2012, Liontrust Asset Management Plc ("Liontrust"), announced that it had entered into a conditional share purchase agreement with Walker Crips Group Plc ("Walker Crips") to purchase (the "Acquisition") the entire issued share capital of Walker Crips Asset Managers Limited. The Acquisition completed on 12 April 2012 and Liontrust issued 1,851,719 new Ordinary shares, £4 million of convertible un-secured loan stock and £6,447,853 in cash as consideration payable to Walker Crips, which included net assets of £0.448 million.                                                                                         

Other information

This preliminary announcement constitutes non-statutory accounts under section 435 of the Companies Act 2006. The financial information for the year ended 31 March 2011 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 6 July 2012.

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 Services Authority).  Nothing in this announcement should be construed as a profit forecast or be relied upon as a guide to future performance.

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