REG - Tatton Asset Mgt PLC - Trading Update and Notice of Final Results

Tatton Asset ManagementAnnouncement

18/04/2023 07:00

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RNS Number : 4923W  Tatton Asset Management PLC  18 April 2023

18 April 2023

 

Tatton Asset Management PLC

("TAM," the "Group" or the "Company")

TRADING UPDATE AND NOTICE OF FINAL RESULTS

 

Tatton Asset Management plc (AIM: TAM), the on-platform discretionary fund
management (DFM) and IFA support services Group, today announces the following
unaudited trading update for the year ended 31 March 2023 ("FY23", the
"Period" or the "Year"), which shows strong growth in line with the Board's
expectations. The Group's audited Final Results are scheduled to be released
on 13 June 2023.

 

TRADING UPDATE

Record organic net inflows of 15.8% in a challenging environment have
contributed to a strong performance in FY23 and the Board is confident that
the financial results for the Year will be in line with consensus market
expectations.

 

Highlights

Assets under management ("AUM/AUI") increased by 22.3% in the Year to £13.871
billion (2022: £11.341 billion).

 

Tatton Investment Management delivered another strong year of growth with the
number of active firms increasing 16.5% to 869 (2022: 746), supporting record
organic net inflows for the year of £1.794 billion (2022: £1.277 billion),
an increase of 15.8% of the AUM at the start of the year. Net inflows in the
second half of the year were £0.887 billion, an average of £148 million per
month maintaining the strong performance delivered in the first half of the
year of £0.907 billion. These record inflows of £1.794 billion represent a
40.5% increase on the prior year net inflows. AUM/AUI was further increased
through the acquisition of 50% of the share capital of 8AM Global Limited in
August 2022, contributing assets under influence ("AUI") of £1.136 billion,
which is an increase from the £1.0 billion at acquisition. Market performance
over the year reduced AUM/AUI by 3.5% or £0.400 billion.

 

                                        £bn
 Opening AUM 1 April 2022               11.341
 Organic net flows                      1.794
 Market and investment performance      (0.400)
 Total AUM 31 March 2023                12.735
 Acquisition 50% 8AM Global (AUI)       1.136
 Total AUM / AUI 31 March 2023          13.871

Paradigm has performed well with Consulting member firms increasing to 431
(2022: 421) and Mortgage firms increasing to 1,751 (2022: 1,674). Paradigm
Mortgages involvement in completions in the second half of the year remained
strong at £7.2bn, despite rising interest rates and continued global
uncertainty. This resulted in a record year for completions which totalled
£14.5 billion (2022: £13.2 billion), a 9.8% increase on the prior year.

 

The Group ended the year with cash on the balance sheet of £26.5m.

 

Paul Hogarth, Chief Executive Officer, commented:

 

"I am delighted with the performance this year as the Group delivered another
year of strong growth in what has been a difficult and volatile market
environment for most asset managers. Against this backdrop we have increased
our AUM/AUI over the year by 22.3% to £13.9 billion, close to our £15
billion target by the end of FY24 and with still a year to go.

 

"This year we are celebrating the tenth anniversary of the creation of Tatton
and during that period we have been at the forefront of the MPS market and
continued to champion the IFA. We have consistently grown, adding new firms
and AUM annually, resulting in this year being our strongest ever and I now
believe the MPS market has reached a point where it has truly come of age. In
addition to the £1.1bn of AUI acquired with 8AM in August, Tatton Investment
Management delivered record organic net inflows of £1.8 billion a 40.5%
increase on the prior year and a 71.5% increase over the average of the last
five years (five-year average: £1.046 billion). It was even more pleasing
that we carried the first half momentum into the second half of the year,
ensuring we maintained consistent flows throughout the year as a whole. The
market drivers remain unchanged and we will continue to invest to strengthen
the team in order to take advantage of the sizeable opportunity for further
organic growth in the years ahead.

 

"Paradigm has also delivered a good year with involvement in record mortgage
completions of £14.5 billion despite a much more difficult market in the
second half of the year.

 

"We look forward with confidence as we make further progress and continue to
deliver against our strategic objectives."

 

 

For further information please contact:

 

 Tatton Asset Management plc                       +44 (0) 161 486 3441

 Paul Hogarth (Chief Executive Officer)

 Paul Edwards (Chief Financial Officer)

 Lothar Mentel (Chief Investment Officer)

 Zeus - Nominated Adviser and Broker               +44 (0) 20 3829 5000

 Martin Green/Dan Bate (Investment Banking)
                                                   +44 (0) 20 7496 3000

 Singer Capital Markets - Joint Broker

 Peter Steel, Oliver Platts (Investment Banking)

 Belvedere Communications - Financial PR

 John West / Llew Angus (media)                    +44 (0) 7407 023147

 Cat Valentine / Keeley Clarke (investors)         +44 (0) 7715 769078

                                                   tattonpr@belvederepr.com (mailto:tattonpr@belvederepr.com)
                                                   +44 (0) 20 7139 1452

 Trade Media Enquiries

 Roddi Vaughan Thomas (Head of Communications)

 

For more information, please visit: www.tattonassetmanagement.com
(http://www.tattonassetmanagement.com)

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