Liontrust Asset Management PLC on Thursday said it will buy back up to £5.0 million shares as its half-year results showed a swing to profit.

London-based Liontrust focuses on long-term active management of investments.

The buyback programme will be phased over the period to March 31. The company will also maintain last year’s interim dividend at 22.0 pence per share. It set a dividend target of 72.0p per share for the year ending March 31.

The pretax profit of £12.5 million in the six months to September 30 was swung from a loss of £10.1 million in the same period last year.

Revenue was down 17% year-on-year to £87.0 million from £104.5 million.

Adjusted profit before tax was also down 28% to £25.8 million from £36.0 million last year. This excludes amortisation and impairment expenses, and costs associated with acquisitions, restructuring and severance compensation.

Liontrust said assets under management and administration were worth £25.96 billion on September 30, down 6.7% from £27.82 billion at the start of April. Net outflows were £2.07 billion, down from £3.21 billion a year prior.

Chief Executive Officer John Ions said: ‘The last six months have continued the challenging period for active managers including Liontrust. There are a number of reasons, however, why we are confident that we are moving into a more positive environment and the outlook is improving.

‘The headwinds facing many of our investment strategies are now being replaced by tailwinds including lower inflation and interest rates. We are seeing improved performance across our funds and we continue to have a strong brand and client engagement... Our confidence is reflected in the fact that we are targeting the same dividends as last year and have announced a share buyback programme,’ he added.

Additionally, Liontrust directors bought up shares. CEO John Ions bought 60,000 shares at £4.50 each, worth £270,000, on Thursday, while a close associate of his, Paige Ions, bought 40,000 shares at £4.50 each, worth £180,000. Chief Financial Officer Vinay Abrol bought 50,000 shares at £4.54 each, worth £227,000.

Shares in Liontrust Asset Management rose 7.8% to 449.00 pence in London on Thursday afternoon.

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