Liontrust shares rise as asset manager announces buyback and cost cuts

Investing.com -- Liontrust Asset Management (LON:LIO) shares surged 4.2% on Thursday after the UK-based fund manager announced a £10 million share buyback program and additional cost-cutting measures, despite reporting a decline in first-half profits.

The company reported adjusted profit before tax of £15.7 million for the six months ended September 30, down from £25.8 million in the same period last year, broadly in line with analyst expectations of £16 million. Revenue fell to £69.1 million from £87 million a year earlier, reflecting lower assets under management and advice (AuMA).

Liontrust’s AuMA stood at £22 billion as of September 30, unchanged from November 12, as the company continued to face outflows. Net outflows during the period totaled £2.32 billion, worse than the £2.07 billion outflows reported in the same period last year.

To address these challenges, Liontrust announced plans to deliver annualized cost savings of approximately £1.5 million by the end of June 2026, which will cost around £1 million to implement. The company also declared a first interim dividend of 7 pence per share, in line with analyst expectations.

"The return to net inflows has taken longer than we expected. Yet, below the headline flow numbers, it has been pleasing to see the broadening of clients who are investing across our fund range," said John Ions, Chief Executive Officer of Liontrust.

In a positive development, Liontrust revealed it had been awarded two institutional mandates totaling around £250 million, which it expects to be funded before the end of December 2025.

"We are confident that the flows will be turned and the excellent delivery for clients from across Liontrust will be rewarded," Ions added.

The company’s revenue margin decreased to 0.56% from 0.60% in the previous year, while adjusted operating margin fell to 23.8% from 30.5%.