Liontrust Asset Management Reports Full-Year Results: Profits Fall but River Global Acquisition Nears Completion

Liontrust full-year results 2026: profits are down, but the flow picture is improving

These Liontrust full-year results are a mixed bag. The hard numbers are weaker – profits, earnings per share, revenue margin and the dividend all moved lower – but the trading update gives investors a more encouraging message on momentum.

In plain English, Liontrust is still dealing with the after-effects of a tough period for active fund managers, where clients have been pulling money out. The difference now is that the outflows are slowing, institutional wins are coming through, and the River Global acquisition is about to land.

Key metric	FY 2026	FY 2025
Gross profit	£123.0 million	£157.7 million
Adjusted profit before tax	£30.5 million	£48.3 million
Statutory profit before tax	£14.4 million	£22.3 million
Adjusted diluted EPS	36.7p	56.8p
Full-year dividend	19.0p	72.0p
Closing AuMA	£19,554 million	£22,590 million
Net flows	£4,184 million outflow	£4,904 million outflow
AuMA at 19 June 2026	£21,445 million	Not disclosed

Why Liontrust profits fell: lower assets and lower fee margin did the damage

The main issue is straightforward. Liontrust had less money to manage on average during the year, and it earned slightly less on those assets.

Average assets under management and advice, or AuMA, fell to £21,871 million from £25,671 million. Revenue margin – the recurring revenue Liontrust earns relative to average AuMA, excluding performance fees – slipped to 0.55% from 0.60%.

That combination fed straight into the income statement. Revenue dropped to £134.4 million from £169.8 million, while gross profit fell to £123.0 million from £157.7 million.

Adjusted profit before tax came in at £30.533 million, down from £48.266 million, and adjusted operating margin fell to 24.0% from 29.2%. That tells you the business still has operational gearing: when assets and fees fall, profit gets squeezed quite quickly.

Liontrust net outflows are still painful – but the trend is less bad

This is the part of the update that matters most for the share story. Net outflows for the year were still large at £4,184 million, but that was better than the £4,904 million outflow seen in 2025.

And the more interesting bit is current trading. As at 19 June 2026, Liontrust said total net outflows for the quarter were £276 million, with gross institutional inflows of over £500 million.

That is still not net inflow territory, so nobody should get carried away. But compared with the scale of outflows seen over the past year, it does suggest the drain is slowing, and in asset management that can be the first real sign that a recovery is taking shape.

There were also some bright spots in the fund mix. Institutional accounts delivered net inflows of £410 million over the year, and international funds brought in £109 million, even as UK retail funds and managed portfolio services saw a £4,530 million outflow.

River Global acquisition approval: why this deal could matter more than this year’s earnings

The Financial Conduct Authority has approved the change in control for River Global Holdings Limited, and Liontrust expects the acquisition to complete on 30 June 2026. For me, this is the strategic headline.

The reported results are backward-looking. The River Global deal is about what Liontrust looks like next.

The consideration is an all-share transaction with an initial value of £7.6 million, excluding the European Opportunities Trust mandate, with up to £2.1 million of extra contingent consideration payable in shares depending on that mandate. That structure matters because it limits the upfront cash hit while still broadening Liontrust’s investment range.

River Global’s AuMA as at 19 June 2026 were £2,964 million, with net inflows of £39 million in the quarter to 19 June 2026, based on River Global’s figures and excluding certain mandates and funds. Liontrust says the acquisition adds multi-style and recovery funds, more investment talent, and more opportunities with institutional and international clients.

That all makes sense. Liontrust is trying to reduce its dependence on a narrower set of strategies and client types, and River Global looks like part of that answer.

Liontrust dividend cut to 19.0p: bad news for income investors, but not a surprise

The dividend is the sore point. The full-year payout has been cut to 19.0p from 72.0p, with a second interim dividend of 12.0p per share.

That is a big reduction, and income-focused shareholders will not dress it up as anything else. When earnings are lower and the group is still reshaping the business, management clearly wants more flexibility.

The softer edge to that is capital discipline. Liontrust says its capital allocation policy includes buybacks, and since the programme began it has bought back 3.6 million shares, equal to 5.6% of issued share capital before the programme started.

Cash, capital and costs: Liontrust still looks financially solid

Cash and cash equivalents fell to £50.620 million from £75.901 million. That is a noticeable drop, but it was driven in part by £35.761 million of dividends paid and £5.086 million spent on buying back shares.

Importantly, the regulatory capital position still looks comfortable. Surplus capital after foreseeable dividends was £29.0 million, up from £26.1 million a year earlier.

Costs also moved lower. Total administration expenses fell to £109.711 million from £137.633 million, while employee and member related expenses dropped to £55.133 million from £71.842 million. That shows the business transformation and efficiency work is having an effect, even if it has not been enough to offset weaker revenue yet.

There was one small warning flag in the detail: a £1.030 million impairment on Majedie funds-related intangible assets due to higher than expected outflows. Not a crisis, but it is another reminder that older acquisitions still need to prove their value.

What this Liontrust RNS means for retail investors

My read is that this is not a great set of historic results, but it may be a better update than the headline profit decline suggests. The old problems are still visible in the numbers, yet the current trading commentary hints that the business may be turning a corner.

The positives are clear: outflows are slowing, institutional wins are improving, regulatory capital is solid, costs are lower, and River Global should add fresh products and distribution opportunities. The negatives are just as clear: profits are down sharply, the dividend has been cut hard, and the core UK retail flow picture is still weak.

So this looks like a recovery story, not a finished recovery. If Liontrust can turn slowing outflows into stable or positive net flows, the operational gearing could start working in shareholders’ favour again. Until then, investors are being asked to back the strategy before the income statement fully catches up.