Interim Results - Turnover Up 28%
LIONTRUST ASSET MANAGEMENT PLC
26 October 1999
LIONTRUST ASSET MANAGEMENT PLC
INTERIM RESULTS FOR THE 6 MONTHS TO 30th SEPTEMBER 1999
Liontrust Asset Management PLC ('Liontrust'), the specialist UK equities fund
management group, announced today its interim results for the six months to
30th September 1999, its first results since the Company's flotation on the
London Stock Exchange in July 1999.
Highlights
* Successful listing on the London Stock Exchange
* Funds under management at 25th October 1999 of £862 million.
* Funds under management increased by 132% from £339 million in September 1998
and by over 19% from £661 million at the time of flotation to £789 million
by 30th September 1999.
* Turnover increased 28% to £2.68 million (September 1998: £2.09 million).
* Consolidated operating profit and earnings per share (before exceptional
costs) increased by 70% and 34% respectively.
Commenting on the results, Nigel Legge, Joint Chief Executive, said:
'Our first set of results since flotation reflects satisfactory growth in
funds under management and operating profits. Liontrust is well positioned to
continue to benefit from changes taking place in the fund management industry
and the increasing demand for smaller, focused operators providing a quality
service to pension funds and professional investors.'
For further information, please contact:
Nigel Legge, Joint Chief Executive
Liontrust Asset Management 0171 412 1700
Paul Downes/Melanie Toyne Sewell
Merlin Financial 0171 606 1244
Liontrust Asset Management PLC
Chairman's Statement
The last six months have seen some exciting developments for Liontrust. The
Company achieved a successful listing of its shares on the London Stock
Exchange and many of its new shareholders are existing clients. New
appointments include William Pattisson, who joined Jeremy Lang as Joint
Investment Director, and two new non-executive directors - Glyn Hirsch and Jim
Sanger.
These results are the first interim financial statements since the Company's
flotation and satisfactory progress has been made so far. The consolidated
operating profit (before exceptional costs) rose by 70% from £383,000 to
£650,000 for the six months ended 30 September 1999, earnings per share
(before exceptional costs) increased by 34% from 1.03p to 1.38p per share,
funds under management continue to grow and the performance of the funds has
been impressive. William Pattisson and Jeremy Lang have recently completed
their research on large companies and Liontrust is ready to offer their
documented core investment approach to prospective clients. On 14 October
1999, a new unit trust was launched for this purpose.
The financial results for the period show that turnover was up 28% at £2.68
million whilst operating costs, which include William Pattisson's
remuneration, increased by 19% to £2.03 million. The cost : income ratio for
the period at 75.6% (before exceptional costs) continues to improve and has
the potential to fall further as additional investment mandates are won. The
exceptional costs of £1.94 million relate to the phantom options that became
payable on admission of the Company's shares to the London Stock Exchange and
had been fully allowed for in the Company's business plans and financing. The
Directors do not propose to declare a dividend in respect of the half year, as
stated in the flotation Prospectus.
Funds under management stood at £789 million on 30 September, an increase of
132% on the figure at 30 September 1998 (£339 million) and 43% up on the
position at the financial year end (£551 million at 31 March 1999). As at the
date of this announcement funds under management have increased further to
£862 million.
The Directors continue to believe that there are significant opportunities for
fund management groups that can demonstrate clear and coherent investment
processes and also a growing acceptance that specialist fund managers can add
value to client portfolios. The Liontrust Large Cap. Process, managed by
William Pattisson, further strengthens the Company's available products and
the Board is confident of the Company's prospects.
Ellen Winser
Chairman
Liontrust Asset Management PLC
Consolidated Profit & Loss Account
Six months to 30 September 1999
Note Six Six Nine
months months months
to 30.9.99 to 30.9.98 to 31.3.99
unaudited unaudited audited
£'000 £'000 £'000
Turnover 2,680 2,091 3,608
Operating costs (2,030) (1,708) (2,737)
_______ _______ _______
Operating profit before exceptional costs 650 383 871
Exceptional cost 2 (1,935) - -
________ _______ _____
Operating profit/(loss) (1,285) 383 871
Net interest receivable/(payable) (21) 1 (61)
_________ ________ ______
Profit/(loss) on ordinary activities before
tax (1,306) 384 810
Taxation 3 386 (13) (116)
________ _______ ______
Profit/(loss) on ordinary activities after
tax (920) 371 694
Provision for preference dividend - (62) (16)
________ _______ ______
Profit/(loss) for the period transferred
to/(from) reserves (920) 309 678
________ _______ ______
pence pence pence
Basic Earnings per share 4 (2.91) 1.03 2.26
Basic Earnings per share (pre-exceptional
costs and related tax credit) 4 1.38 1.03 2.26
Fully diluted Earnings per share 4 (2.74) 0.97 2.12
Fully diluted Earnings per share (pre-
exceptional costs and related tax credit) 4 1.30 0.97 2.12
Liontrust Asset Management PLC
Consolidated Balance Sheet
At 30 September 1999
Note 30.9.99 30.9.98 31.3.99
unaudited unaudited audited
£'000 £'000 £'000
Fixed assets 300 297 319
Current assets
Short term investments 21 27 42
Debtors 2,281 1,775 5,876
Cash at bank and in hand 1,426 2,066 2,416
_______ ______ _______
3,728 3,868 8,334
Creditors - amounts falling due within one
year (3,248) (3,455) (8,827)
_______ _______ _______
Net Current Assets/ (Liabilities) 480 413 (493)
_______ _______ _______
Total Assets less Current Liabilities 780 710 (174)
Creditors - amounts falling due after more
than one year (1,310) (2,000) (650)
_______ _______ _______
(530) (1,290) (824)
_______ _______ _______
Capital and Reserves
Called up Ordinary share capital 5 329 300 300
Share premium account 6 1,543 - -
Reserve for Preference share dividend 5 - 358 358
Profit and loss account (2,402) (1,948) (1,482)
_______ _______ ______
(530) (1,290) (824)
_______ _______ ______
Liontrust Asset Management PLC
Consolidated Cash Flow Statement
6 months to 30 September 1999
Six months Six months Nine
to 30.9.99 to 30.9.98 months
unaudited unaudited to 31.3.99
audited
£'000 £'000 £'000
Operating profit/(loss) (1,285) 383 871
Depreciation charges 40 25 44
Decrease/(increase) in short term investments 21 103 (15)
Decrease/(increase) in debtors 3,595 7,948 (3,859)
Increase/(decrease) in creditors (6,530) (6,265) 4,644
_______ _______ _____
Net cash inflow/(outflow) from operating
activities (4,159) 2,194 1,685
_______ _______ ______
Net cash inflow/(outflow) from operating
activities (4,159) 2,194 1,685
Returns on investment and servicing
of finance (379) (99) (161)
Taxation (3) (2) (24)
Capital expenditure and financial investment (21) (272) (308)
_______ ______ _____
(4,562) 1,821 1,192
Financing 3,572 (320) (720)
_______ _______ _____
Increase/(decrease) in cash (990) 1,501 472
_______ ________ _____
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 nine months ended 31 March 1999. The
financial information for the period to 31 March 1999 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 costs
Exceptional costs were incurred in respect of 'phantom option' arrangements
which crystallised on the listing of the Company's shares on the London Stock
Exchange, as disclosed in the Company's Prospectus.
3. Taxation
The interim tax charge has been calculated at the Corporation Tax rate of 30%
as the Directors believe that the loss incurred during the period will be
fully offset by taxable profits earned in previous periods or expected to be
earned in the foreseeable future.
4. Earnings per share
The calculation of basic earnings per share is based on profit after taxation
and preference dividend provision and the weighted number of Ordinary shares
in issue for each period. The weighted average number of Ordinary shares was
31,568,655 for the six months ended 30 September 1999 and 30,000,000 for both
the six months ended 30 September 1998 and the nine months ended 31 March
1999.
The calculation of fully diluted earnings per share is based on profit after
taxation and preference dividend provision and the weighted average number of
Ordinary shares in issue for each period, as above, adjusted to reflect
options in respect of 1,975,647 Ordinary shares as if they had been exercised
at the start of each period.
5. Share capital
Since 31 March 1999 the Company:
* issued 9,000 'D' Ordinary shares of £1 each on 30 April for a consideration
of £10.09 per share.
* on 13 July 1999 re-registered the 'A', 'B', 'C' and 'D' Ordinary shares of
£1 each and subdivided each of the issued and unissued Ordinary shares into
100 Ordinary shares of 1p each.
* also on 13 July 1999 allotted 310,862 Ordinary shares of 1p each in
consideration for the payment of the outstanding Preference dividend of
£357,491.
* on 20 July 1999 allotted 1,716,597 Ordinary shares of 1p each for a
consideration of £1.15 per share.
The Company's shares were admitted to listing on the London Stock Exchange on
21 July 1999.
6. Share premium
The expenses incurred by the Company in issuing its prospectus and gaining
admission for its shares to listing on the London Stock Exchange have been set
off against the share premium arising from the issue of shares set out in Note
5.
7. Dividends
The Directors do not propose to pay an interim dividend in respect of the
current period.
8. Year 2000
All significant systems which are in the Group's control have been
successfully tested for Year 2000 compliance. The Group has also received
confirmation from all its key service providers and suppliers that there will
be no interruption to services and supplies resulting from Year 2000 issues.
As an added safeguard the Group has prepared contingency plans in case of
critical systems failure. The Directors do not anticipate that the Year 2000
issue and related costs will have a materially adverse effect on the Group.
9. Interim Report
The interim report for the six months ended 30th September 1999 will be sent
to shareholders in due course and additional copies will be available from the
Company Secretary's office: 24 Bevis Marks, London EC3A 7NR.
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