Liontrust posts £1.6m loss

Liontrust made a pre-tax loss of £1.6m over the second and third quarters, according to an interim statement today, compared with a £700,000 profit for the same period in 2009.

In particular, performance fees declined from £2.24 million over the same period in 2009 to £199,000 this year.

The group also had to pay £665,000 in severance and consultancy costs and other related expenses to cover the departure Nigel Legge, the outgoing chief executive.

The departure of Liontrust’s global equity team earlier this year also cost £781,000.

The team had been at the group for a matter of months before Liontrust undertook a strategic review and agreed with the team that its services were no longer required. (article continues below)

Since the end of the third quarter, however, the company had net positive sales of £76m, although assets under management had declined from £1.28m to £1.25m in the year to the end of September.

The increased net sales followed moves to improve Liontrust’s client communication, branding and retail business, which witnessed the bulk of Liontrust’s outflows over the second and third quarters.