(Alliance News) - Liontrust Asset Management PLC on Wednesday reported a drop in funds under management as it posted an annual pretax loss.

In the financial year ending March 31, Liontrust reported a pretax loss of GBP579,000 swinging from a pretax profit of GBP49.3 million a year prior. This came as revenue fell 19% to GBP197.9 million from GBP243.3 million.

Assets under management fell 12% to GBP27.8 billion at March 31 from GBP31.4 billion a year prior, and slipped further to GBP27.25 billion as at June 20.

Basic loss per share reached 5.46 pence compared with earnings per share of 61.45p a year ago. The full year dividend was maintained at 72p.

Chief Executive John Ions said it had been a "challenging" environment for active managers over the past year but noted some green shoots.

"We have started to see signs of a change in investor sentiment and this is likely to move significantly when more central banks reduce interest rates and there is greater political and fiscal certainty in the UK."

"There is no doubt that the amount individuals are investing has been negatively impacted by the cost of living, the reductions in Covid savings and tax rises. With more stability will come greater recognition of valuation opportunities especially in the UK stock market."

Liontrust said the events of the past year have reinforced the need to expand its investment capability across asset classes and investment styles. This has been pursued organically, in the absence of any acquisition opportunities.

"We are building the business from a position of strength despite the challenges of the past year," Ions added.

Ions said he remained "optimistic" about the long-term outlook for the UK economy and stock market and feels Liontrust is "well positioned", for when the UK comes back into favour.

Shares in Liontrust fell 1.7% to 738.00p each in London on Wednesday morning.

By Jeremy Cutler, Alliance News reporter

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