Liontrust has announced a pre-tax loss of £1.7m following an extensive restructure within the asset manager.
The figure compares with an £800,000 pre-tax profit for the financial year ending March 31, 2010. Liontrust has also revealed a drop in performance fees from £3.4m to £1.3m.
The group’s assets under management also fell from £1.3bn to £1.1bn in the 12 months to March 31, 2011. This has since rebounded back up to £1.3bn.
The pre-tax follows a mass restructure within the Liontrust business. These included £513,000 of employment related expenses following the closure of the global equities team headed by Ross Hollyman. There was also a £665,000 payout made to former chief executive Nigel Legge following his departure, as well as £492,000 of expenses related to fund reorganisation and restructuring.
The group has also highlighted the hike in the Financial Services Compensation Scheme interim levy to £415,000, compared to the £20,000 bill given to Liontrust last year.
Liontrust chief executive John Ions says: “”Liontrust has undergone an extensive restructuring programme over the past 14 months, including a rebrand, implementing a more proactive sales strategy, enhancing client communications, revisions to our retail funds range and a focus on our strong performing fund management teams. As a result, 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.
“This has been reflected in the three successive quarters of net positive flows to March 31, 2011. The positive net sales of £81 million for the financial year ended March 31, 2011 represented the first time since the financial year ended March 31, 2004 that the Group has been in a net positive sales position over a financial year.”