Tatton Asset Management plc (LON:TAM), the investment management and IFA support services group, has announced its interim results for the six-month period ended 30 September 2021.
FINANCIAL HIGHLIGHTS
– Group revenue increased 26.4% to £13.8m (Sep 2020: £11.0m)
– Adjusted operating profit1 up 37.9% to £6.9m (Sep 2020: £5.0m)
– Adjusted operating profit1 margin 50.1% (Sep 2020: 45.9%)
– Adjusted fully diluted EPS2 increased 33.7% to 8.76p (Sep 2020: 6.55p)
– Interim dividend up 14.3% to 4.0p (Sep 2020: 3.5p)
– Strong financial liquidity position, with net cash of £14.7m
– Strong balance sheet – Net assets increased 37.5% to £27.5m (Sep 20: £20.0m)
1. Adjusted for exceptional items, share-based payment costs and amortisation
2. Adjusted for exceptional items, share-based payment costs, amortisation and potentially dilutive shares
OPERATIONAL HIGHLIGHTS
– Assets Under Management (“AUM”) increased £1.8bn or 20% to £10.8bn (Mar 2021: £9.0bn)
– Current AUM at 12 November 2021 c.£11.2bn
– Organic net inflows £652m (Sep 20: £321m), an increase of 7.3% of AUM – Average run rate of £109m per month
– Acquisition of £650m Verbatim funds and a five-year strategic distribution partnership with Fintel plc, providing access to 3,800 firms and over 6,000 users
– Tatton’s non-MPS propositions account for over £1.2bn of AUM as at the end of the Period
– Tatton’s IFA firms increased by 12.7% to 703 (Sep 2020: 624) and the number of accounts increased 19.1% to 81,600 (Sep 2020: 68,500)
– Tenet continues to develop well with AUM reaching £740m (Mar 2021: £541m)
– Paradigm mortgage completions up by 31.6% to £6.6bn (Sep 2020: £5.0bn). Paradigm Mortgages member firms increased by 3.5% to 1,646 members (Sep 2020: 1,591 members)
– Paradigm Consulting increased its members by 3.5% to 418 (Sep 2020: 404)
Trading momentum has continued since the last market update and post Period end and, as a result, we now anticipate that trading for the current financial year will be ahead of the Board’s previous expectations.
Paul Hogarth, Chief Executive Officer, commented:
“I am delighted to report that the Group has delivered a solid first half result, delivering against our strategic objectives and maintaining strong growth across all our key metrics of AUM, revenue and profits.
During the Period, Tatton Asset Management exceeded the milestone of £10 billion AUM from pure organic growth while also expanding our distribution footprint by entering into new long term strategic partnerships and we were thrilled to have reached £10.8 billion at the end of September 2021. Paradigm also delivered a record level of mortgage completions of £6.6 billion in the six month Period. Trading momentum has continued since the last market update and post Period end and, as a result, we now anticipate that trading for the current financial year will be ahead of the Board’s previous expectations.
The IFA remains at the heart of our business, and our breadth of services, propositions and engagement ensures we maintain existing client relationships while enhancing our ability to attract new firms. Accordingly, as we look forward, we are confident we will continue to make progress and take advantage of the opportunities ahead.”
