Trading Update and Notice of Results

RNS Number : 1750D

Tatton Asset Management PLC

18 October 2022

 

18 October 2022

Tatton Asset Management plc

(the "Group")

AIM: TAM

Trading Update and Notice of Results

Tatton Asset Management plc (AIM: TAM), the investment management and IFA support services business, is today providing an unaudited period end update on the Group's performance for the six months ended 30 September 2022 (the "Period"). The unaudited results for the Period will be announced on Tuesday, 22 November 2022.

The Group has performed well in the Period with continued growth in revenue and profits and strong net inflows in a difficult and volatile market.

Tatton delivered high levels of organic net inflows averaging £150m per month (Mar 2022: £106m per month) in the Period. Total inflows in the Period were £0.907bn an increase of 39.1% compared to the same period last year (Sept 2021: £0.652bn). These strong organic net inflows were offset by a negative market performance of £0.905bn resulting in total AUM at the end of the Period being in line with the prior year end at £11.343bn (Mar 2022: £11.341bn). We also continued to attract new firms, which totalled 806 at the end of the Period, an increase of 8.0% since the prior year end (Mar 2022: 746).

We continued to execute our "Road Map to Growth" strategy, a three-year target of increasing AUM from £9.0bn (Mar 21) to £15.0bn through a combination of organic new net inflows and strategically aligned acquisitions, by completing the acquisition of 50% of the share capital of 8AM Global Limited ("8AM") towards the end of the Period. At the time of completion, the assets of 8AM were expected to be at least £0.8bn and are now anticipated to settle closer to £1.0bn at the end of the Period.

	Total £bn
Opening AUM 1 April 2022	11.341
Net inflows	0.907
Market and investment performance	(0.905)
Closing AUM 30 September 2022	11.343
Acquisition of 8AM - AUI¹	1.000
Total closing combined AUM / AUI 30 September 2022	12.343

¹ Asset under influence 100% of the 8AM AUM

Paradigm, the Group's IFA support services business, also continued to perform well, with Mortgage firms increasing to 1,706 (Mar 2022: 1,674) and Consulting member firms to 424 (Mar 2022: 421).

Paradigm Mortgages participated in mortgage completions of £7.2bn (Sept 2021: £6.6bn), an increase of 9.1% as the momentum from the prior year was carried forward into this Period.

Paul Hogarth, Founder and CEO of Tatton Asset Management plc, said:

"We are pleased with the continued progress we are making as a Group against the backdrop of difficult and volatile markets that have been with us throughout this Period. Organic net inflows were very strong in the first six months as we had a number of significant wins which complemented underlying flows. We anticipate that net inflows will return to a more normalised level in the second half of this year in line with H2 of the prior year.

"Paradigm Consultancy continues to perform well and our Mortgage business participated in a record £7.2bn of gross lending in the Period. Whilst applications have remained robust in the Period, given the climate of increasing interest rates and general economic uncertainty, we anticipate that the second half will be more challenging.

"We look forward to making further progress in the rest of the year while remaining mindful of the continuing macro-economic turbulence and market volatility and we remain confident in the Group's longer-term prospects."

For further information please contact:

Tatton Asset Management plc Paul Hogarth (Chief Executive Officer)  Paul Edwards (Chief Financial Officer)  Lothar Mentel (Chief Investment Officer)	[phone]
Zeus - Nomad and Broker Martin Green/Dan Bate (Investment Banking)	[phone]
Singer Capital Markets - Joint Broker Peter Steel, Rachel Hayes, Amanda Gray (Investment Banking)	[phone]
Belvedere Communications - Financial PR John West / Llew Angus (media) Cat Valentine / Keeley Clarke (investors)	[phone] + 44 (0) 7715 769078 [e-mail]
Trade Media Enquiries Roddi Vaughan Thomas	[phone]

For more information, please visit: www.tattonassetmanagement.com

 

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