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

Tatton Asset ManagementAnnouncement

19/10/2023 07:00

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RNS Number : 5729Q  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                                                      +44 (0) 161 486 3441

 Paul Hogarth (Chief Executive Officer)

 Paul Edwards (Chief Financial Officer)

 Lothar Mentel (Chief Investment Officer)

 Zeus Capital - Nomad and Broker

 Martin Green (Investment Banking)                                                +44 (0) 20 3829 5000

 Dan Bate (Investment Banking and QE)

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

 Peter Steel / Charles Leigh-Pemberton (Investment Banking)

 Belvedere Communications - Financial PR                                          +44 (0) 7407 023147

 John West / Llew Angus (media)                                                   +44 (0) 7715 769078

 Cat Valentine / Keeley Clarke (investors)                                        tattonpr@belvederepr.com (mailto:tattonpr@belvederepr.com)

 Trade Media Enquiries                                                            +44 (0) 7469 854 011

 Roddi Vaughan Thomas (Head of Communications)

 

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

 

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