Trading Update and Notice of Results

Tatton Asset Management PLC

19 October 2023

 

19 October 2023

Tatton Asset Management plc

("TAM plc" or the "Group")

AIM: TAM

Trading Update and Notice of Results

AUM/AUI annual increase of £2.441bn or 19.8% to £14.784bn

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 2023 ("H1 24" or the "Period"). The unaudited results for the Period will be announced on Thursday, 16 November 2023.

The Group is performing well and results are in line with the Board's expectations for the Period, with continued growth in both revenue and profits driven by strong net inflows.

Tatton has continued to maintain consistent high levels of organic net inflows averaging £152m per month in the Period (FY23: £150m per month). Total net inflows in the Period were £0.910bn, marginally ahead of both the final six months of the prior financial year (H2 23: £0.887bn) and the same Period last year (H1 23: £0.907bn).

These strong organic net inflows were supported by a positive market performance of £0.100bn. The total AUM at the end of the Period was £13.720bn (30 September 2022: £11.343bn), an annual increase of 21.0% or £2.377bn. The increase in this six month Period was 7.7% or £0.985bn (AUM at 31 March 2023: £12.735bn).

Including 8AM Global Limited ("8AM") assets of £1.064bn, AUM/AUI increased over the last twelve months by 19.8% or £2.441bn to £14.784bn (30 September 2022: £12.343bn). The increase in this six month Period was 6.6% or £0.913bn (AUM at 31 March 2023: £13.871bn). We anticipate that AUM/AUI will exceed our three year strategic "Road Map to Growth" target of £15.0bn by March 2024.

We continue to attract support from new firms and have increased the total number of supporting IFAs by 5.2% to 914 since the end of the prior year (31st March 23: 869).

	Total £bn
Opening AUM 1 April 2023	12.735
Organic net inflows	0.910
Market and investment performance	0.100
Disposal of AIM portfolio	(0.025)
Closing AUM 30 September 2023	13.720
8AM - AUI¹	1.064
Total closing combined AUM / AUI 30 September 2023	14.784

¹Assets under influence 100% of the 8AM Global AUM

Paradigm, the Group's IFA support services business, has delivered a resilient performance in the Period. Paradigm Mortgages participated in mortgage completions totalling £6.9 billion (H1 23: £7.3 billion). We have continued to deliver a strong volume of completions in this challenging economic climate, although as anticipated the nature and distribution of these completions reflected the wider market and shifted towards lower margin product transfers rather than new mortgages or buy-to-let completions. Mortgage member firms in the Period increased to 1,798 (31 March 2023: 1,751) and Consulting member firms were 437 at the end of the Period (31 March 2023: 431).

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

"The Group continues to make good progress amidst the continuing backdrop of persistently volatile economic and market conditions.

"It has been very pleasing to see Tatton's sustained strong organic net inflows in an environment where in general, asset managers have been suffering redemptions. In fact, over the past 18 months, we have consistently achieved an average of £150 million in net inflows per month, reaffirming our progress and we now expect to exceed our £15 billion 'Road Map to Growth' strategy by March 2024.

"Our Paradigm Mortgage business participated in £6.9bn of mortgage completions in a Period which saw increasing interest rates and uncertainty in the housing market. As expected, the mix of completions shifted to lower margin products, but overall we are pleased with the resilient performance in H1 23. Paradigm Consulting continues to perform in line with our expectations.

"We look forward to making further progress over the rest of the year, while remaining acutely aware of the continuing macroeconomic turbulence and market volatility. The Board remains confident in the future prospects of the Group."

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 Capital - Nomad and Broker Martin Green (Investment Banking)                       Dan Bate (Investment Banking and QE)	[phone]
Singer Capital Markets - Joint Broker Peter Steel / Charles Leigh-Pemberton (Investment Banking)	[phone]
Belvedere Communications - Financial PR John West / Llew Angus (media) Cat Valentine / Keeley Clarke (investors)	[phone] [phone] [e-mail]
Trade Media Enquiries Roddi Vaughan Thomas (Head of Communications)	[phone]

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

 

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