Restructuring costs at Liontrust Asset Management (LIO.L) have led to a £4.5 million loss after tax in its full-year results, to 31 March 2011.

The loss compares with a post-tax profit of £1.1 million for the year to 31 March 2010.

Chief executive John Ions said the 'extensive' programme over the past 14 months had positioned the for future expansion and growth.

The programme included a rebrand, new sales strategy, and revisions to its retail fund range.
 
Ions said, 'Liontrust is now more focused and streamlined, better organised and has a clearer strategy for growth.'

He said net positive flows had come as a result of the restructuring programme, with net sales of £81 million for the year to 31 March.

The Liontrust chief said, 'The restructuring has come at a one-off financial cost, however, with a consequential impact on Liontrust's profitability.

'Nevertheless, the group believes the changes have been crucial in turning around the fortunes of the business and will have a significant long-term benefit for the company and its shareholders.'

He added, 'It has been a challenging start with your company but I believe we are now well positioned to take the company forward. I relish the challenge.'

Liontrust chairman Adrian Collins said the company had accrued costs related to reducing staff numbers and other administration costs, closing its global equities team.

He said there had also been a 'vast increase' in its Financial Services Compensation Scheme interim levy, rising from £20,000 to £415,000, as a result of claims related to structured product provider Keydata and other failed investment firms. Collins said the asset manager would also look at new asset classes, in which to expand.

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