Liontrust in £1.7m loss due to shake-up
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Liontrust made a loss of £1.7m in the last financial year ending March 2011 following an extensive restructure.
The figure compares with an £800,000 profit for the previous year. Liontrust also saw a drop in performance fees from £3.4m to £1.3m.
Assets under management fell from £1.3bn to £1.1bn to March 31 this year but have since recovered to £1.3bn. A huge restructure in the business included £513,000 of employment-related expenses following the closure of the global equities team. There was also a £665,000 payout made to former chief executive Nigel Legge following his departure, and £492,000 of expenses on fund reorganisation and restructuring.
The company highlighted the increase in the Financial Services Compensation Scheme interim levy to £415,000, compared with a £20,000 bill last year.
Chief executive John Ions says: “The company is significantly better placed for future expansion than it was a year ago. Liontrust is now more focused and streamlined, better organised and has a clearer strategy for growth.”
Chelsea Financial Services managing director Darius McDermott says: “I think they have turned the corner and Liontrust will build on the franchise from here.”
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