28 May 2021

PREMIER MITON GROUP PLC

HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2021

Premier Miton Group plc ('Premier Miton', 'Company' or 'Group'), the AIM quoted fund management group, today announces its half year results for the six months ended 31 March 2021 (the 'Period').

Highlights 

·    £12.6 billion closing Assets under Management ⁴ ('AuM') (2020 HY: £9.1 billion)

·    £13.1 billion closing AuM as at 30 April 2021

·    Net inflows of £359 million in the Period (2020 HY: £(389) million outflows)

·    74% of funds have above median investment performance since launch or tenure ⁵

·    Adjusted profit before tax ^1,4 of £11.9 million (2020 HY: £12.2 million)

·    Profit before tax of £6.2 million (2020 HY: £5.3 million)

·    Proposed interim dividend of 3.7 pence per share (2020 interim: 2.5 pence per share)

Notes

(1) Adjusted profit before tax is calculated before the deduction of taxation, amortisation, share-based payments, merger related costs and exceptional costs. Reconciliation included within the Financial Review section.

(2)  Adjusted earnings per share is calculated before the deduction of amortisation, share-based payments, merger related costs and exceptional costs.

(3) Merger related costs totalled £1.2 million during the period (2020 HY: £3.0 million).

(4)  These are Alternative Performance Measures ('APMs').

(5)  As at 31 March 2021. Based on Investment Association sector classifications where applicable, with data sourced from FE Analytics using the main representative post-RDR share class, based on a total return, UK Sterling basis. Performance for investment trusts is calculated on Net Asset Value ('NAV'), ranked against the relevant Morningstar category for each investment trust.

Mike O'Shea, Chief Executive Officer of Premier Miton Group, commented:

"We have made considerable progress as a business since our merger in 2019 and it is pleasing to be able to report a return to net positive flows for the Group over the period. Premier Miton is now a well-diversified asset manager operating on a stable and sustainable platform with a robust balance sheet."

"With attractive investment performance and a clear sense of client service, coupled with a growing brand and targeted marketing activity, this is an exciting time for the firm. I believe that the business is well positioned to deliver for our investors and for our wider stakeholders over the years ahead."

ENDS

For further information, please contact:

www.premiermiton.com 

About Premier Miton

Premier Miton Investors is focused on delivering good investment outcomes for investors through relevant products and active management across its range of investment strategies, which include equity, fixed income, multi-asset and absolute return.

LEI Number: 213800LK2M4CLJ4H2V85

Chairman's Statement

I was delighted to be appointed Chairman of the Group in February and am pleased to introduce these interim results. The Group has made considerable progress over the past half year and is well placed for further success.

Financial results

These are set out in more detail below and show a strong story with Assets under Management ('AuM') standing at £12.6 billion at 31 March 2021, an increase of 19% on the opening position for the period. AuM at the period end is split between single-strategy 56%, multi-asset 31%, fixed income 4%, investment trusts 6% and segregated mandates 3%.

This position reflects overall improving investment markets and a return to positive net flows for the Group. Net inflows for the period totalled £359 million (2020 HY: £(389) million outflow), marking a real turn for the business.

We know that our clients have choices for their savings and will only invest with us if we perform as they expect. We seek to charge a fair fee for our services and keep a strong cost discipline to balance the interests of our clients with those of our other stakeholders. I am pleased that we are doing so and that our profit before tax for the period was £6.2 million, up by 17% against the comparative period last year.

We have declared an interim dividend of 3.7p per share representing an increase of 48% on the comparative period and I thank our shareholders for their ongoing support. The final dividend for 2020 of 4.5p per share was paid on 12 February 2021 following Shareholder approval at the Group's Annual General Meeting on 3 February 2021.

Our strong capital position protects the Group through market cycles and allows us to take a long-term view of

business development. The Group has no external bank debt and held net cash of £34.4 million as at 31 March 2021.

Strategy

Asset management is a large and fast-changing global industry with attractive opportunities for growth. The UK remains well placed to continue as an important centre for the industry and we look forward to the future with confidence. Our clients are mainly in the UK although many of our funds invest globally. We have a resilient and well designed business platform which is highly scalable and designed to support significant growth in AuM. We are targeting a greater market share within the UK without material change to our operating model or the immediate need to increase the breadth of our product range, although of course we are always interested in adding to our investment and distribution talent.

We have now successfully completed the merger of Premier and Miton and our Group is far stronger and better placed. I believe that our leadership team did an excellent job on the merger and has accumulated valuable acquisition and integration experience.

The asset management industry is going through a period of extensive strategic change which will mean good businesses, teams and individuals becoming available. We continue to look for new strategic or tactical opportunities to grow and add value to the Group, using sensible and thought through criteria for pursuing ideas.

Culture

I know that asset management firms need a healthy culture to be successful over time. Put simply, we must do the right things, in the right way and for the right reasons. As our business grows and changes, we pay close attention to our own culture to make sure we understand if and where any adjustments are needed. Our most recent review which was led at Board level shows that overall our culture is distinctive, healthy and valuable. We intend to keep it this way through careful and thoughtful leadership.

Environmental, Social and Governance ('ESG')

I expect we are all feeling our way to a better understanding of ESG matters and what we need to do as a Group. This is an essential matter for a responsible asset management firm and, next to fund performance, is increasingly relevant to determining our success as a business. I believe we are taking the right steps, especially so in the investment models for several of our funds, yet we have much more to learn and do. I look forward to saying more on this in future.

People

As at 31 March 2021, we employed 151 people and over the past months their working lives have not been easy, yet I am proud of how hard they have worked and how well they have coped. The coming months are likely to be challenging as we decide together how a modern, successful workplace will look and what this means for our people. I am optimistic that, whatever the broader environment, we will find ways to attract, retain and motivate our talented people.

We know that managing other people's savings well gives everyone in Premier Miton a strong purpose and carries broad responsibilities. I thank our people for all that they do.

Board

Mike Vogel was Chairman of the Group for 13 years and instrumental in our success and the healthy position we are now in. We thank him deeply for his stewardship. Since announcing his departure, the Nomination Committee

led the process of developing our Board composition, with particular regard to opportunities to improve diversity, as well as fulfill the requirement to identify a suitable candidate to chair the Audit & Risk Committee. We set out to find candidates who would bring a full contribution to the role, especially in view of the changing nature of the industry and our ambitions. We have met several excellent candidates and expect shortly to announce on appointment.

Outlook

Premier Miton is a successful and ambitious business. We have a clear plan for growth and profitability and an experienced management team with the energy to achieve this. The market outlook is still rather clouded and volatile yet there are encouraging signs for us. I am confident that our Group will make the most of our strong platform and distinctive investment styles as we, hopefully, emerge from the wretched pandemic. I look forward, alongside the other members of the Board, to making my own contribution as your Chairman.

Robert Colthorpe

Chairman

27 May 2021

Chief Executive Officer's Statement

The half year ended 31 March 2021 has been an important period for Premier Miton. Despite the challenging circumstances of the global pandemic, the business has continued to grow, we have seen a return to net positive fund flow across the Group, and our people have successfully delivered on our goals of business continuity and strong outcomes for our investors.

Business performance

The Group's AuM increased by 19% in the period, to £12.6 billion as at 31 March 2021. The average AuM was £11.8 billion versus £9.9 billion for the comparative period, an increase of 19%.

Net inflows for the period were £359 million (2020 HY: £(389) million outflow).

Pleasingly, the business demonstrated robust profitability with adjusted profit before tax of £11.9 million and a resulting profit before tax of £6.2 million.

During the period we saw continued growth from several of our single strategy funds. The Premier Miton European Opportunities Fund, launched in 2015, passed the milestone of £2 billion, ending the period with AuM of £2.4 billion. Also growing strongly was the Premier Miton US Opportunities Fund demonstrating a consistent, active investment approach. It surpassed an important AuM milestone ending the half year with £1.1 billion of AuM.

It was also pleasing to see a strong recovery for our UK smaller companies fund, which has been one of the strongest performers in its sector. AuM for this fund have now reached £234 million and we have recently taken steps to restrict flows into the fund in order to protect the long-term interests of investors in the fund. Performance of the UK microcap investment trust has been similarly impressive.

We see growth opportunities across many of our funds, particularly where there has been top quartile investment performance. Over the medium term, we believe that UK equities are likely to reverse their long-term underperformance against global equities. As investor interest in UK equities returns, our UK-focused funds, which have very strong relative performance records, are, we believe, well placed to capture significant market share.

Our multi-asset multi-manager funds also have significant exposure to UK equities in order to meet their income requirements for investors. Whilst this exposure has been a headwind in performance terms, although not in income generating terms, a return to form for UK equities will be helpful looking forward.

It is also our belief that as we emerge from the pandemic the long deflationary down wave that has been in place since the financial crisis of 2008 will likely give way to a more reflationary environment. This could persist for much longer than many people expect with a significant impact on bond yields, interest rates and inflation. In this environment, we believe that genuinely active management will come to the fore, as investors will have to work much harder to achieve their financial objectives. Premier Miton's range of high active share, alpha focused funds are well placed to help deliver for investors in this environment.

Product development

During the period our funds maintained strong investment performance, with 64% of AuM in first quartile and 75% performing above median within their respective IA sectors since the tenure of the fund manager. Shorter-term numbers also look promising and we believe that this will support future fund flows. Over three years, we have 63% above median. Over one year, we have 80% above median and 78% in the first quartile.

The Group has continued to develop its product range during the period. In November, Emma Mogford joined the Group from Newton Investment Managers and assumed management of three UK equity income funds. Emma has a disciplined style that we believe will do well for investors over the long term.

In January 2021 we made changes to our multi-asset multi-manager fund range, driven by the aim to reduce the costs borne by investors. This team, led by David Hambidge and head of research, Ian Rees, now offers nine funds covering all outcome objectives - income, risk-targeted, growth and wealth preservation. Recently Wayne Nutland, manager of the Premier Miton Managed Index Balanced Fund, joined the multi-manager team. Wayne is an experienced fund manager in asset allocation, portfolio construction and ETF selection and the team will leverage his expertise to assist in the multi-manager portfolios.

Further to these changes and with effect from 1 February 2021, David Jane and Anthony Rayner assumed the management of Premier Miton Multi-Asset Growth & Income Fund and the Premier Miton Multi-Asset Conservative Growth Fund.

Neil Birrell, our Chief Investment Officer and manager of the successful Diversified multi-asset fund range, became manager of the Premier Miton Balanced Multi Asset Fund from 1 March 2021. Building on the success of the Premier Miton Diversified Growth Fund, the fund will have similar asset allocation but with a planned focus on sustainable investments.

I am also pleased to report on the successful launch of the Premier Miton Global Smaller Companies Fund. The fund launched on the 22 March 2021 and is managed by the investment team of Alan Rowsell and Imogen Harris who both joined us from Aberdeen Standard Investments in 2020. This fund fits in well with our ethos and offers investors active stock selection in the global smaller companies universe. At the period end, this fund had £15 million in AuM.

Lastly, in terms of product development, the new Premier Miton European Sustainable Leaders Fund launched on 10 May 2021. The fund is managed by the highly regarded investment team of Carlos Moreno and Thomas Brown together with Russell Champion, who will be joining the Group later in 2021. This fund broadens the team's investment offering and builds on their successful Premier Miton European Opportunities Fund.

Responsible investing

During the period, we have continued to develop our focus on responsible investing. This includes integration of ESG factors into our investment processes, the development of specialist investment products in this area and building clearer responsible investing reporting for our clients. We believe it is important that we offer responsible investment products to our clients and, as part of this, to actively and responsibly consider ESG issues with the companies we invest in.

As a Group, we currently manage five funds with specific sustainable, ESG or ethical objectives designed to meet increasing demand for a specialist responsible investing approach from our investors. These funds include our

top-performing ethical fund managed by Benji Dawes and Jon Hudson.

Additionally, we have announced the launch of a further sustainable product during 2021. I am delighted that we will be offering such a strong range of sustainable and responsible focused funds. I would like to thank Helene Winch, our head of responsible investing, and the many people involved in the launch or transition of these funds.

There is more for us to do in this area, but we are making good progress.

Distribution

Our distribution team has adapted well to the challenges of working remotely and moving to a virtual world of meetings and client contact. It is pleasing to see that high levels of client contact have been maintained throughout the period and that we have been able to effectively communicate the key features of our funds to investors and their advisers.

The Group purposely structures its distribution to be relationship-centric, split according to the key focus areas of the discretionary and advisory intermediary markets. Our sales team consists of 21 people and is geographically structured to provide comprehensive coverage throughout the United Kingdom. The distribution team has a detailed approach to sales data and this has been enhanced through the successful integration of the databases used by both the former Premier and Miton areas of the business.

Our marketing team continued to focus on a broad range of activities to build awareness of the Premier Miton brand and familiarity across our investment range, as well as to keep our clients informed. This work has included organising many digital events, such as webinars, for existing and potential professional investors. The Group's new website was launched in March 2021 reflecting our brand and offering enhanced information for our different

client groups, including financial advisers and wealth managers.

COVID-19

It has been a challenging period during lockdown and the welfare of our people has been our highest priority. I have been impressed with the adaptability and resilience our staff have shown across all areas of the business.

The current indications are that the roadmap for easing restrictions remains on target. We have been

thinking carefully about our working arrangements and the availability of ongoing workspace flexibility to our staff.

As a Group we believe the office is a place of collaboration, engagement and thought leadership. We also recognise the many positive elements to working from home and the benefits of not commuting every day. It is safe to say that we will endeavour to adopt a more flexible approach to office-based working in the future and create an arrangement that successfully combines the benefits of home working with a dynamic office environment.

Outlook

With the completion of the operational aspects of the merger in December 2020, we are now realising the benefits of our combined platform and the hard work put in over the past 12 months.

Our operational platform has been streamlined to support significant growth in AuM and our investment teams, with their genuinely active ethos, are very well positioned to navigate market trends as we hopefully emerge from the pandemic. We have an experienced, effective distribution team working diligently to communicate the benefits of our funds and deliver excellent client service.

Mike O'Shea

Chief Executive Officer

27 May 2021

Financial Review

Assets under Management * ('AuM')

* Indicates Alternative Performance Measures ('APMs').

AuM ended the half year at £12,602 million, an increase of 19% on the opening position for the period.

In the six months to 31 March 2021 the Group saw a return to net inflows totalling £359 million (2020 HY: £(389) million outflows).

The equity fund range experienced strong client demand driven primarily by the European and US funds. Toward the end of the period, the Group saw increased interest for the UK-focused funds with inflows across these funds totalling £162 million.

The multi-asset funds continued to see outflows, £(627) million (2020 HY: £(325) million outflows), however, in the second quarter the level of outflows reduced to £(243) million. During the period, the Group completed a number of changes to the multi-asset multi-manager funds with the objective of reducing overall costs for investors. These funds have also returned to delivering strong investment performance over the last 12 months.

The fixed income team performed well during the period and continued to gather AuM. At 31 March 2021, the two new funds launched on 14 September 2020 had combined AuM of £145 million. In addition to this, on 22 October 2020 the team were appointed to manage two external mandates with AuM of £366 million at 31 March 2021.

Financial performance

Profit before tax was £6.2 million (2020 HY: £5.3 million). The Group completed the operational aspects of the merger with a further £1.2 million of non-recurring costs recognised during the period (2020 HY: £3.0 million).

Adjusted profit before tax*, which is after adjusting for amortisation, share-based payments, merger-related costs and exceptional costs was £11.9 million (2020 HY: £12.2 million).

1  Being gross management fee income less trail/rebate expenses and the cost of fund accounting and external Authorised Corporate Director ('ACD') fees for the former Miton fund range where applicable

2  Average AuM is calculated on a daily basis

3  Net management fee margin represents net management fees divided by the average AuM

The Group's net management fee margin for the period was 64.2 basis points (2020 HY: 67.4 basis points). As noted in the 2020 Annual Report and Accounts, the merger with Miton Group plc introduced a lower average margin business. The resulting change in the business mix and the impact of flows and markets on our existing business has driven the change in the net management fee margin.

Administration expenses (excluding share-based payments) totalled £26.6 million (2020 HY: £21.3 million). The increase reflects the inclusion of an additional one and a half months of costs associated with the former Miton business, when compared to the comparative period. This has, in part, been offset by synergies realised post-merger.

Staff costs continue to be the largest component of administration expenses, these consist of both fixed and variable elements. Fixed staff costs, which includes salaries and associated national insurance, employers'

pension contributions and other indirect costs of employment, increased to £9.1 million (2020 HY: £8.3 million).

The Group continues to invest in new products and teams where it believes it can generate good investment

outcomes for clients. The results for the period include a full six months of costs for the fixed income and global smaller companies teams.

Amortisation

The amortisation of intangible assets increased to £2.4 million (2020 HY: £2.1 million). The charge for the period includes a full six months of amortisation relating to the intangible assets recognised on completion of the merger.

Share-based payments

The share-based payment charge for the period was £2.1 million (2020 HY: £1.6 million).

As at 31 March 2021 the Group's Employee Benefit Trusts ('EBTs') held 10,421,565 ordinary shares representing 6.6% of the issued ordinary share capital (2020 FY: 9,921,565 shares).

At the period end the outstanding awards totalled 13,213,920 (2020 FY: 9,329,115). The increase reflects 3,980,000 awards granted during the period. See note 12 for further detail.

Exceptional costs and non-recurring merger-related costs

Merger-related and exceptional costs incurred in the period amounted to £1.3 million (2020 HY: £3.1 million).

Of this balance, £1.2 million related to the merger (2020 HY: £3.0 million). On 27 November 2020 the Group completed the onboarding of all open-ended funds onto the in-house ACD platform. The majority of the Group's funds are now named 'Premier Miton'.

Capital management and dividends

At 31 March 2021 the Group held £34.4 million in cash (2020 HY: £29.3 million). The Group has no debt.

Dividends totalling £6.7 million were paid in the period (2020 HY: £10.6 million), see note 3 for further detail.

The Board is recommending an interim dividend payment of 3.7p per share (2020 HY: 2.5p interim dividends). The interim dividend will be paid on 13 August 2021 to shareholders on the register at the close of business on 23 July 2021.

The Group seeks to maintain a dividend policy that targets an ordinary dividend pay-out of approximately 50 to 65% of profit after tax, adjusted for exceptional costs, share-based payments and amortisation.

Piers Harrison

Chief Financial Officer

27 May 2021

Alternative Performance Measures ('APMs')

Unaudited Condensed Consolidated Statement of Comprehensive Income

for the six months ended 31 March 2021

No other comprehensive income was recognised during 2021 or 2020. Therefore, the profit for the period is also the total comprehensive income.

Unaudited Condensed Consolidated Statement of Changes in Equity

for the six months ended 31 March 2021

Unaudited Condensed Consolidated Statement of Financial Position

as at 31 March 2021

Unaudited Condensed Consolidated Statement of Cash Flows

for the six months ended 31 March 2021

Notes to the Unaudited Condensed Consolidated Financial Statements

for the six months ended 31 March 2021

1. Basis of accounting

These interim unaudited Condensed Consolidated Financial Statements do not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. They have been prepared on the basis of the accounting policies as set out in the Group's Annual Report for the year ended 30 September 2020.

The interim unaudited Condensed Consolidated Financial Statements to 31 March 2021 have been prepared in accordance with IAS 34 'Interim Financial Reporting' and the Listing Rules of the Financial Conduct Authority.

Premier Miton Group plc (the 'Group') is the Parent Company of a group of companies which provide a range of investment management services in the United Kingdom and Channel Islands.

The Group's 2020 Annual Report is prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union, and is available on the Premier Miton Group plc website (www.premiermiton.com).

The Group has considerable financial resources and ongoing investment management contracts. As a consequence, the Directors believe that the Group demonstrates the financial resilience required to manage its business risks successfully. The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of at least twelve months after the date the interim financial statements are signed. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the interim unaudited Condensed Consolidated Financial Statements. The Directors note that the Group has no external borrowings and maintains significant levels of cash reserves. The Group has conducted financial modelling at materially lower levels of AuM with the business remaining cash generative. The Directors have also reviewed and examined the financial stress testing inherent in the Internal Capital Adequacy Assessment Process ('ICAAP').

These interim unaudited Condensed Consolidated Financial Statements were approved and authorised for issue by the Board

acting through a duly authorised committee of the Board of Directors on 27 May 2021.

The full-year accounts to 30 September 2020 were approved by the Board of Directors on 25 November 2020 and have been

delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006. The figures for the six months ended 31 March 2021 and the six months ended 31 March 2020 have not been audited.

The interim unaudited Condensed Consolidated Financial Statements are presented in Sterling and all values are rounded

to the nearest thousand pounds (£000) except where otherwise indicated.

Forward looking statements

These interim unaudited Condensed Consolidated Financial Statements are made by the Directors in good faith based on information available to them at the time of their approval of the accounts. Forward looking statements should be treated with caution due to the inherent uncertainties, including economic, regulatory and business risk factors underlying any such statement. The Directors undertake no obligation to update any forward looking statement whether as a result of new information, future events or otherwise. The interim unaudited Condensed Consolidated Financial Statements have been prepared to provide information to the Group's shareholders and should not be relied upon by any other party or for any other purpose.

IFRS 16 'Leases'

The Directors have applied the IFRS 16 modified retrospective approach with the cumulative effect of adopting IFRS 16 being

recognised as an adjustment to the opening balance of retained earnings as at 1 October 2019. In the comparative period, the

adoption of IFRS 16 resulted in an increase in depreciation of £326,730 and finance costs of £33,695. Other administration expenses decreased by £184,425.

2. Segmental reporting

The Group has only one business operating segment, asset management for reporting and control purposes.

IFRS 8 'Operating Segments' requires disclosures to reflect the information which the Group's management uses for evaluating

performance and the allocation of resources. The Group is managed as a single asset management business and as such, there are no additional operating segments to disclose. Under IFRS 8, the Group is also required to make disclosures by geographical segments. As Group operations are solely in the UK and Channel Islands, there are no additional geographical segments to disclose.

3. Dividend

The final dividend for the year ended 30 September 2020 of 4.5p per share was paid on 12 February 2021 resulting in a distribution of £6,659,616. This is reflected in the Consolidated Statement of Changes in Equity (2020 HY: £10,588,834).

4. Revenue

Revenue recognised in the Consolidated Statement of Comprehensive Income is analysed as follows:

All revenue is derived from the United Kingdom and Channel Islands.

5. Exceptional items and merger-related costs

Recognised in arriving at operating profit from continuing operations:

Exceptional items are those items of income or expenditure that are considered significant in size and/or nature to merit separate disclosure and which are non-recurring.

Merger-related costs in the period totalling £667,026 (2020 HY: £2,091,208) represented legal and professional fees associated with the merger with Miton Group plc of £25,496 and merger integration costs of £641,530.

Employment restructuring costs arising as a result of the merger totalled £546,057 (2020 HY: £891,103).

6. Taxation

An increase in the UK corporation tax rate from 19% to 25% was announced in the Budget on 3 March 2021 and the Finance Bill on 11 March 2021 and expected to be effective from 1 April 2023. Deferred tax has been calculated on the current rate, had the new rates been applied the impact would be to increase the deferred tax asset by £523,317 and increase in the deferred tax liability by £771,300.

7. Earnings per share

Basic earnings per share is calculated by dividing the profit for the period attributable to ordinary equity shareholders of the Parent Company by the weighted average number of ordinary shares outstanding during the period.

The weighted average of issued ordinary share capital of the Company is reduced by the weighted average number of shares held by the Group's Employee Benefit Trusts ('EBT'). Dividend waivers are in place over shares held in the Group's EBTs.

In calculating diluted earnings per share, IAS 33 'Earnings Per Share' requires that the profit is divided by the weighted average

number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be

issued on conversion of all the dilutive potential ordinary shares into ordinary shares during the period.

(a) Reported earnings per share

Reported basic and diluted earnings per share has been calculated as follows:

(b) Adjusted earnings per share

Adjusted earnings per share is based on adjusted profit after tax, where adjusted profit is stated after charging interest but before share-based payments, amortisation, merger-related costs and exceptional items.

Adjusted profit for calculating adjusted earnings per share:

Adjusted earnings per share was as follows using the number of shares calculated at note 7(a):

8. Goodwill and other intangible assets

Cost amortisation and net book value of intangible assets are as follows:

The additions to goodwill and intangible assets in the comparative period relate solely to the acquisition of Miton Group plc.

Intangible assets acquired in the business combination related to the investment management agreements between Miton Group plc and the funds to which it was the investment manager and the value arising from the underlying client relationships.

The Group has determined that it has a single cash-generating unit ('CGU') for the purpose of assessing the carrying value of goodwill. Impairment testing is performed at least annually whereby the recoverable amount of the goodwill is analysed via the value-in-use method and compared to the respective carrying value. During the period no impairment was identified.

9. Cash and cash equivalents

10. Provisions

Provisions primarily relate to dilapidations for the offices at 6th Floor, Paternoster House, London, and the Group's disaster recovery office in Reading. The lease on Paternoster House runs to 28 November 2023 and the provision for dilapidations on this office has been disclosed as non-current.

11. Share capital

On 14 November 2019 the Company completed an all-share merger with Miton Group plc. The Company issued 52,111,725 new ordinary shares on 15 November 2019 ranked pari passu in all respects with the Company's existing ordinary shares in issue.

12. Share-based payment

The total expense recognised for share-based payments in respect of employee services received during the period to 31 March 2021 was £2,067,110 (2020 HY: £1,636,455).

During the period 3,980,000 (2020 HY: 2,075,000) nil cost contingent share rights over ordinary shares of 0.02p in the Company

were granted to 36 employees (2020 HY: nine). Of the total award, 550,000 (2020 HY: 150,000) nil cost contingent share rights were awarded to Executive Directors. The awards will be satisfied from the Group's EBTs.

The share-based payment expense is calculated in accordance with the fair value of the contingent share rights on the date of grant. The price per right at the date of grant was £1.44 on 10 March 2021 for 3,680,000 and £1.42 on 17 March 2021 for 300,000, resulting in a fair value of £5,725,200 to be expensed over the vesting periods of three to five years.

The key features of the awards include: a three to five-year vesting term, automatic vesting at the relevant anniversary date with the delivery of the shares to the participant within 30 days of the relevant vesting date.

After the period end on 12 April 2021, 664,795 nil cost contingent share rights over ordinary shares of 0.02p in the Company were exercised by 30 employees; of the total nil were exercised by an Executive Director.

(a) Employee Benefit Trusts

Premier Miton Group plc established an EBT on 25 July 2016 to purchase ordinary shares in the Company to satisfy share awards to certain employees.

During the period 500,000 (2020 HY: 1,894,043) shares were acquired and held by the Group's EBTs at a cost of £723,670

(2020 HY: £2,668,525).

At 31 March 2021 10,421,565 (2020 HY: 9,921,565) shares are held by the Group's EBTs, all shares (2020 HY: 7,324,487) relate to outstanding awards.

At 31 March 2021, the cost of the shares held by the EBTs of £15,372,639 (2020 HY: £14,648,840) has been disclosed as own shares held by an EBT in the Consolidated Statement of Changes in Equity and the Consolidated Statement of Financial Position.

13. Subsequent events post balance sheet

(a) COVID-19

As at 27 May 2021 the ongoing coronavirus ('COVID-19') pandemic is being kept under review by the Group. Premier Miton Group plc continues to carefully manage its cost base and communicate regularly with employees, shareholders, clients, IFAs and intermediaries and other suppliers. COVID-19 is monitored in the context of the Group's risk and control framework.

(b) Employee Benefit Trust

After the period end and as at 25 May 2021, the last practicable date prior to publication of this Interim Report, 1,981,572 shares were acquired and held by the Group's EBTs at a cost of £3,073,367.

On 10 May 2021 226,395 Management Equity Incentive ('MEI') awards over ordinary shares of 0.02p in the Company held

by an Executive Director lapsed.

Management currently assesses these events to represent non-adjusting subsequent events as at the interim reporting date

of 31 March 2021.