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

Tatton Asset ManagementAnnouncement

18/10/2022 07:00

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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                                                      +44 (0) 161 486 3441

 Paul Hogarth (Chief Executive Officer)

 Paul Edwards (Chief Financial Officer)

 Lothar Mentel (Chief Investment Officer)

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

 Martin Green/Dan Bate (Investment Banking)

 Singer Capital Markets - Joint Broker                                            +44 (0) 20 7496 3000

 Peter Steel, Rachel Hayes, Amanda Gray (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

 Trade Media Enquiries                                                            +44 (0) 20 7139 1452

 Roddi Vaughan Thomas

 

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

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