Liontrust Asset Management, a prominent investment manager in the UK, has announced a pretax loss in the first half of fiscal 2024. The company attributes this loss to one-off charges and an impairment, as well as a significant decrease in assets under management.
In the six months ending September 30, Liontrust Asset Management reported a pretax loss of £10.1 million, a substantial decline from the pretax profit of £12.8 million during the same period the previous year. This loss can be primarily attributed to several factors, including a charge of £46.2 million related to acquisitions and associated restructuring costs, noncash amortization and impairment, and other noncash and nonrecurring expenses.
Furthermore, the company's assets under management saw a considerable decrease, falling from £31.7 billion to £27.65 billion as of September 30.
The decline in revenue has also contributed to their financial difficulties, with revenue dropping to £104.55 million from £116.8 million. As a result, Liontrust Asset Management experienced an operating loss of £10.7 million compared to a profit of £14.1 million.
Despite these challenges, the investment manager remains optimistic about the future outlook for the company. They have declared a stable dividend of 22.0 pence.
It is important to note that Liontrust Asset Management acknowledges the headwinds faced by the asset management industry as a whole, as well as their recent period of net outflows. However, they believe that the company is well-positioned to navigate these challenges and emerge stronger.