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

Tatton Asset ManagementAnnouncement

15/10/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241015:nRSO1348Ia&default-theme=true

RNS Number : 1348I  Tatton Asset Management PLC  15 October 2024

 

Tatton Asset Management plc

("TAM plc" or the "Group")

AIM: TAM

 

Trading Update and Notice of Results

 

Record H1 net inflows of £1.8bn contributes to a £2.3bn increase in AUM/I(1)
up 26.6%(2) to £19.9bn

 

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 2024 ("H1 25"
or the "Period"). The unaudited results for the Period will be announced on
Wednesday, 13 November 2024.

 

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 £305m per month in the Period (FY24: £192m per month). Total net
inflows in the Period were a record £1.832bn, representing 22.1% of opening
AUM on an annualised basis, and ahead of both the final six months of the
prior financial year (H2 24: £1.393bn) and the same Period last year (H1 24:
£0.910bn).

 

These strong organic net inflows were supported by a positive market
performance of £0.534bn. The total AUM/I(1) at the end of the Period was
£19.948bn (30 September 2023: £14.784bn), an annual increase of 34.9% or
£5.164bn.

 

We continue to attract support from new firms and have increased the total
number of supporting IFAs to 1,038  (31 March 2024: 975), a 6.5% increase
since the end of the prior year.

                                                    Total £bn
 Opening AUM 1 April 2024                           16.551
 Organic net inflows                                1.832
 Market and investment performance                  0.534
 Closing AUM 30 September 2024                      18.917
 8AM - AUI¹                                         1.031
 Total closing combined AUM/I(1) 30 September 2024  19.948

 

Paradigm, the Group's IFA support services business, has delivered a resilient
performance in the Period. Paradigm Mortgages participated in mortgage
completions totalling £6.6bn (H2 24: £6.2bn). We have continued to deliver a
strong volume of mortgage completions in this challenging high-interest rate
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 1,930 (31 March 2024: 1,916)
and Consulting member firms were 437 at the end of the Period (31 March 2024:
424).

 

¹AUM/I includes 100% of the 8AM Global Limited AUM (Assets under influence)

(2)Annualised growth

 

 

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

"The Group has made strong progress this financial year which is exemplified
by the record level of net inflows over the last six months. Particularly
pleasing is the consistency of the flows averaging £305m per month with a
high of £375m and low of £260m per month over the Period. The strong flows
coupled with the consistent investment performance has increased our AUM by
£2.3bn to just short of £20bn in six months, a key milestone as we head
towards our target of £30bn by the end of FY29. As always, we remain
appreciative of the consistent support from existing and new firms who choose
Tatton as an investment partner.

 

"Our Paradigm Mortgage business participated in £6.6bn of mortgage
completions showing an improving performance from the second half of last
year.  We welcome the continued improvement in the housing market as
inflation and interest rates have both reduced over the Period.  Paradigm
Consulting continues to perform in line with our expectations.

 

"As we enter the second half of the year, we are conscious of the wider
macroeconomic and geopolitical volatility but more acutely, the impact the UK
Autumn Budget is having on investor sentiment and the UK market generally.
 However, against this backdrop, we believe we are well positioned to make
further progress over the remainder of this financial year."

 

 

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                                     +44 (0) 20 3829 5000

 Martin Green (Investment Banking)

 Dan Bate (Investment Banking and QE)
                                                                     +44 (0) 20 7496 3000

 Singer Capital Markets - Joint Broker

 Peter Steel (Investment Banking)

 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)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTBRBDGLGBDGSS