Liontrust to cut jobs as profits fall

(Sharecast News) - Liontrust Asset Management said on Thursday that it was planning to cut around 25 jobs in a bid to save costs, as it reported a drop in first-half profits. In the six months to 30 September, adjusted pre-tax profit fell to £25.8m from £36m in the same period a year earlier. Gross profit declined to £81.1m from £98.6m.

The company said it had been a "challenging period" for active managers, particularly given growing demand for passive vehicles.

Liontrust said it was proposing a reduction in staff numbers of around 25 roles, or 12% of the group across the business and across levels of seniority. If implemented in full, this will save around £4.5m and be carried out over the next few months.

As part of the plan, Liontrust is also closing four funds that are sub-scale and for which there is insufficient demand.

The company said it was maintaining its 72p a share dividend and announced a share buyback programme of up to £5m, phased over the period to the end of March 2025.

Chief executive John Ions said: "The last six months have continued the challenging period for active managers including Liontrust. There are a number of reasons, however, why we are confident that we are moving into a more positive environment and the outlook is improving.

"We are steadfast in our commitment to active management and to our partnership with clients through complementing their other strategies including passive investments. The headwinds facing many of our investment strategies are now being replaced by tailwinds including lower inflation and interest rates. We are seeing improved performance across our funds and we continue to have a strong brand and client engagement."

Ions said the strategic changes made to the group over the past year to drive the business forward, through diversifying the product range, broadening distribution, strengthening the technological, data and digital capability, and enhancing the client experience, are having a noticeable impact.

"This is all underpinned by our continued robust financial position," he said. "Our confidence is reflected in the fact that we are targeting the same dividends as last year and have announced a share buyback programme."