Companies and economies around the world continued to feel the effects of the coronavirus-enforced lockdowns during the second half of 2020. Investment Week reports on how they have done since then.
Liontrust
Liontrust Asset Management saw profits before tax fall by 26% on the same time last year to £6.9m in the six months to 30 September as costs related to acquisition of the Architas UK business weighed on profitability.
Adjusted profit before tax, which demonstrates pre-tax profits excluding non-cash expenses, such as £15.4m of costs associated with the acquisition, was up 31% over the period at £22.3m.
Assets under management and advice rose by 28% to £20.6bn over the six month period, with the completion of the Architas UK deal pushing this figure to £28.1bn by 20 November.
Net inflows for the six months ended 30 September were £1.7bn, an increase of 28% compared to the equivalent period last year. Assets were also boosted by £2.9bn in growth from investment performance.
Adjusted basic earnings per share were £31.46 over the period, up from £27.34 at the same time last year.
Liontrust has posted a first Interim dividend per share of 11p, up from 9p in September 2019, which will be payable on 8 January 2021.
Commenting on the results, John Ions, chief executive, said: "It has been a challenging period for everyone. Covid-19 continues to affect all parts of the economic and social fabric of the country and its effects will be felt for many years to come.
"It is a testament to the quality of people at Liontrust, the processes we have in place and our ability to deliver for clients that we have been able to continue to generate such large inflows. The scale of the achievement is shown by Liontrust continuing to appear in the top ten for retail sales in the UK.
"Active fund management can continue to benefit investors by meeting their expectations. The Liontrust Economic Advantage team have been doing this for more than 20 years through their robust and repeatable investment process, which is evidenced by long-term fund performance.
"Active managers have the opportunity to add value through sustainable investment if they avoid greenwashing. At the heart of any successful business are its clients, and ours are clearly telling us they want their money to have a positive impact on society and the world at large.
"To ensure Liontrust delivers this, we are committed to pushing forward our levels of engagement to produce the best possible outcomes for investors."
Charles Stanley
Charles Stanley has reported a 27.5% drop in its underlying profit before tax over the six months to 30 September compared to the same period last year, as the pandemic and higher FSCS levy costs hit the business.
The firm's underlying profit before tax for the six-month period amounted to £6.6m compared to £9.1m during the same six-month period last year, which the firm said reflected lower revenues, while its underlying profit margin dropped 8.1%.
The revenues for the period decreased by 4.1% to £81.9m, reflecting the impact of the Covid-19 pandemic on funds under management and administration (FuMA), as well as historically low interest rates.
Revenues from investment management services dropped from £77m last year to £72.9m over the latest six-month period, although Charles Stanley Direct maintained its revenues at the same level as last year of £4.5m.
The financial planning division, on the other hand, brought in 15.4% higher revenues at £4.5m, while the firm's transformational programme launched a year ago has already resulted in realised cost savings of £1.2m and is on track for a £2.5m saving for the full financial year.
The average FuMA during the period was £22.1bn, 9.4% lower than the same period last year, but by the end of September the figure had risen 12.9% to £22.8bn, reflecting the rebound in markets after the sell-off in March.
Commenting on the results, CEO Paul Abberley said that despite the Covid-19 hit, the business has remained "resilient…in the face of the exceptionally difficult trading conditions…with revenue and profits at encouraging levels".
"Charles Stanley reacted rapidly and effectively to the unique challenges. We maintained our normal high level of service to clients while ensuring staff safety," he said.
"Although the effects of the pandemic will be with us for some time, Charles Stanley remains well-positioned. We have a strong balance sheet, with no debt and good cash flows. This will allow us to continue to provide clients with an excellent service and to make further progress with our strategic objectives."
