Liontrust Asset Management : Full Year Results for Year Ended 31 March 2020

LEI: 549300XVXU6S7PLCL855 For immediate release

8 July 2020

LIONTRUST ASSET MANAGEMENT PLC

FULL YEAR RESULTS FOR THE YEAR ENDED 31 MARCH 2020

Liontrust Asset Management Plc ("Liontrust", the "Company", or the "Group"), the independent fund management group, today announces its results for the year ended 31 March 2020.

Results:

• • Adjusted profit before tax of £38.1 million (2019: £30.1 million), an increase of 26%

• • Adjusted diluted earnings per share of 56.7 pence per share (2019: 46.9 pence per share), an increase of 21%

• • Profit before tax of £16.5 million (2019: £22.2 million (restated)), a decrease of 26%, see note 5 below for a reconciliation to adjusted profit before tax

• • Revenues of £107 million (2019: £85 million), an increase of 26%

Dividend:

•
Assets
•	On 31 March 2020, assets under management and advice ("AuMA") were £16.1 billion
(2019: £12.7 billion), an increase of 27%
•	AuMA as at close of business on 30 June 2020 were £19.3 billion
Flows:
•	Net inflows for the year to 31 March 2020 of £2,695 million (2019: £1,775 million)

under

Second Interim dividend per share of 24.0 pence (2019: 20.0 pence), which will be payable on 21 August 2020. This brings the total dividend per share for the financial year ending 31 March 2020 to 33.0 pence (2019: 27.0 pence), an increase of 22%

management

and

advice:Proposed acquisition

• • On 1 July 2020 announced the proposed acquisition of Architas-Multi Manager Limited and Architas Advisory Services Limited (together "Architas UK Investment Business") for a total consideration of up to £75 million

Commenting, John Ions, Chief Executive, said:

"This is my 11th set of Annual Results, marking 10 years as Chief Executive of Liontrust. It has and continues to be a business that I am incredibly proud of.

We have grown Liontrust from around £1 billion of AuMA to £25 billion when the deal for the Architas UK investment business completes later this year, leading us to enter the FTSE250 in June.

I count myself incredibly fortunate to work for a company with so many talented individuals across all areas of the business. The determination, drive and professionalism shown on a daily basis would serve any company well.

This has been another very positive year for Liontrust with record sales and strong fund performance. The strength of our investment teams was highlighted by the SF Managed and SF

Cautious Managed funds both winning at Investment Week's recent Fund Manager of the Year

Awards.

It has also been a year in which we have all been challenged above and beyond our normal experiences. Covid-19 and the near shut down of the UK has brought many external influences in to play. We are not alone in this and in some ways very fortunate that our business has been able to adapt more easily than others to quarantine and remote working.

I am incredibly proud of the way the business has adapted to these challenges. The success of this year is down to the can-do attitude of the people within your Company.

There are many things we have learned and many things to think about and act upon in the years to come. In the early stages of the pandemic, I said we were experiencing five years of change in five weeks.

Among the things we must learn is the need to build a brighter future, and we as an industry have a vital role to play. As guardians of our clients' assets we must work harder to engage with the

companies we invest in to ensure more positive outcomes. From climate change and its socio-economic impact to diversity there is much more we need to do. If we are to take positives from this experience, it is that we can act now to shape a better future."

For further information please contact:

Liontrust Asset Management Plc 020 7412 1700

John Ionswww.liontrust.co.ukVinay Abrol

Simon Hildrey - Chief Marketing Officer

David Boyle - Head of Corporate Development

N+1 Singer Advisory LLP Corporate Broking- Tom Salvesen

020 7496 3000

Numis Securities Limited

020 7260 1000

Corporate Broking & Advisory - Charles Farquhar

Chairman's Statement

Introduction

This is my first Statement on Liontrust's Full Year Results as your Chairman and I would never have anticipated just a few long months ago that it would be written under such circumstances. While the successful momentum of Liontrust has continued since I became Chairman last September and, more significantly, through the Covid-19 pandemic, the world is confronting issues that will have a long-term impact on asset managers, along with other industries. This affects us both as investors and as a company.

Before I address some of the issues, I want to welcome Mandy Donald, who joined the Board in September. She has already made a significant contribution as a Non-executive Director and will continue to do so into the future.

I also want to congratulate John Ions and Vinay Abrol as Chief Executive and CFO/COO on their leadership and achievements over the past decade. This has culminated in Liontrust joining the FTSE250 in June and successfully navigating Covid-19.

The pandemic and subsequent lockdown have created challenges for all businesses in every industry. I and the rest of the Board have been impressed by how well our business moved to remote working and everyone at Liontrust has risen to the challenge with professionalism while maintaining productivity levels. The Directors would like to thank everyone at Liontrust for their dedication and energy especially as lockdown followed just five months after our acquisition of Neptune.

This achievement reflects well on the development of Liontrust over the past few years, the processes that have been in place and the quality of our fund managers, partners and employees. I am pleased to be able to report that it has been another successful year for your company. The continued positive net inflows, the growth in assets under management and the profitability of the business are testament to the strong position the company is in.

The fact that Liontrust is in such good shape, along with the quality of the investment teams and their processes, gives me confidence about the resilience of the business as we head into a particularly uncertain economic environment.

While everyone's attention has been focused on Covid-19 for the past few months, the climate crisis still threatens the long-term health of the planet and therefore of our well-being. We all expect and hope for a greater focus on our relationship with nature and biodiversity going forward; and we were pleased Liontrust was able to provide enhanced support for ZSL during lockdown at a time when the organisation had no income.

Sustainability is an important issue for the Board. John Ions sets out the targets the Board wants the company to achieve in Liontrust's first Sustainability Report to be published in July 2020. These targets cover being a responsible investor, climate change, having a diverse and talented staff, and being a good corporate citizen.

Diversity and equality of opportunity is another key issue that the Board is addressing. The world is being confronted by the reality that the black community still faces inequality and discrimination. Society has a great deal more to do, as does the asset management industry, in enabling black men and women to realise their full potential.

At Liontrust, we seek to promote career progression and eradicate any hurdles that anyone feels they face; in particular, we seek to eliminate unconscious bias whether in recruitment or any other aspect of the business.

Liontrust is also committed to having a positive impact on society such as through charitable initiatives to provide education and employment opportunities across ethnic and social groups, including the black community, to promote greater equality.

Liontrust continues to make significant progress. This success puts us in a good position to have a positive impact on investors, stakeholders and society over the next few years.

Results

Profit before tax is £16.508 million (2019: £22.172 million), a decrease of 26%. The Profit before tax for the financial year ended 31 March 2020 includes £9.7 million of acquisition and re-organisation related costs incurred as a result of the acquisition of Neptune Investment

Management Limited ("Neptune") which completed on 1 October 2019, see note 5 below for further information.

Adjusted profit before tax was £38.054 million (2019: £30.093 million). Adjusted profit before tax is disclosed in order to give shareholders an indication of the profitability of the Group excluding non-cash (depreciation, intangible asset amortisation and share incentivisation related) expenses and non-recurring (professional fees relating to acquisition, cost reduction, restructuring and severance compensation related) expenses ("Adjustments"), see note 5 below for a reconciliation of adjusted profit before tax.

Dividend

The success in fund performance and distribution has resulted in a 52% increase in net inflows, a 27% increase in assets under management and a 26% increase in revenues excluding performance fees when compared to last year. This has enabled the Board to declare a second interim dividend of 24.0 pence per share (2019: 20.0 pence), which will be payable on 21 August 2020 to shareholders who are on the register as at 17 July 2020, the shares going ex-dividend on 16 July 2020. The total dividend for the financial year ending 31 March 2020 is 33.0 pence per share (2019: 27.0 pence per share), an increase of 22% compared with last year.

The Company has a Dividend Reinvestment Plan ("DRIP") that allows shareholders to reinvest dividends to purchase additional shares in the Company. For shareholders to apply the proceeds of this and future dividends to the DRIP, application forms must be received by the Company's Registrars by no later than 31 July 2020. Existing participants in the DRIP will automatically have the dividend reinvested. Details on the DRIP can be obtained from Link Asset Services on 0371 664 0381 or atwww.linkassetservices.com/shareholders-and-investors/dividend-reinvestment-plan. (Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open between 09:00 - 17:30, Monday to Friday excluding public holidays in England and Wales).

Alastair Barbour

Chairman

7 July 2020

Chief Executive's Statement

Introduction

It has been another successful year for Liontrust, with the business making further significant progress.

Liontrust delivered record net positive inflows of £2.7 billion for the 12 months to 31 March 2020, taking our assets under management and advice (AuMA) to £16.1 billion. We generated strong net positive inflows of £492 million during the first three months of 2020 despite the spread of Covid-19 and lockdowns being imposed around the world.

This success led to Liontrust having the 6th highest net retail sales in the UK in 2019 and we had the 5th highest in the first quarter of 2020, according to the Pridham Report.

These sales are testament to the excellence of our investment teams and processes, the loyalty of our clients, the power of our brand and the strength of our sales and marketing capability.

There is increasing focus on environmental, social and governance (ESG) in people's lives, society and companies, and Liontrust is committed to integrating sustainability throughout our business.

The first-ever Liontrust Sustainability Report is being published in July 2020, which provides detailed information about how we are managing the company to ensure we have a positive impact on clients, stakeholders and society. In the Report, we have set out our priorities and targets for being a responsible investor, climate change, having diverse and talented staff, and being a good corporate citizen.

These priorities and targets include providing the tools, training and resources for all our investment managers to consider ESG in their decision-making processes, including material ESG factors in our risk framework and to engage and push for positive change where we have concerns.

Liontrust disclose our scope 1 and 2 emissions as well as some scope 3 emissions including travel. We are working to be in a position to disclose those of our key outsourced providers and our investments next year. We are developing an absolute reduction target by the end of this year that is to be met by 2025.

We are also committed to diversity across the Company as we believe this enhances the performance of businesses and leads to better decision-making.

The Sustainable Investment team has demonstrated for nearly 20 years that its investment process can deliver superior returns over conventional funds. All eight of the UK-domiciled equity and managed funds run by the team are in the 1st quartile of their respective IA sectors over one, three and five years to 31 March 2020.

The benefits of active managers applying rigorous investment processes is also shown in the long- term performance of our other teams. The Economic Advantage team's UK Growth, Special

Situations and UK Smaller Companies funds are in the 1st quartile of their respective IA sectors over one, three, five years and since launch or they took over to 31 March 2020.

The team's other fund, UK Micro Cap, was launched in March 2016 and is in the 1st quartile of the

IA UK Smaller Companies sector over one, three years and since launch. The team of Anthony Cross, Julian Fosh, Victoria Stevens and Matt Tonge was strengthened in March by Alex Wedge joining from N+1 Singer, where he was a senior member of the equity sales team.

We have successfully integrated Neptune Investment Management and rebranded the fund managers as the Liontrust Global Equity team. They have strengthened our equity income capability and added global equity and emerging markets funds. We have seen increasing demand for a number of the team's funds over recent months, including Income, Global Dividend and

Global Equity, and are confident that we will be growing their assets over the next year.

Despite the challenges and headwinds of the past few months facing all companies, everyone at Liontrust has reacted quickly and efficiently, showing the robustness of our business processes.

Communication with our clients and stakeholders has been key to maintaining momentum. Our investment teams held eight webinars between 19 March and 3 April alone. By mid-June, we had hosted a total of 45 webinars, for which we had had 5,855 viewings.