REG - Tatton Asset Mgt PLC - Unaudited Interim Results
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RNS Number : 8843H Tatton Asset Management PLC 18 November 2025
18 November
2025
Tatton Asset Management plc
("TAM plc", the "Group" or the "Company")
AIM: TAM.L
UNAUDITED INTERIM RESULTS
For the six-month period ended 30 September 2025
"Strong net inflows of £1.7bn contribute to a £4.0bn increase in AUM/I(1) to
£25.8bn"
Tatton Asset Management plc, the investment management and IFA support
services group, today announces its un-audited interim results for the
six-month period ended 30 September 2025 (the "Period"), which show
double-digit organic growth across revenue and adjusted operating profit(1),
driven by strong levels of AUM and net inflows.
FINANCIAL HIGHLIGHTS
● Group revenue increased by 18.6% to £25.691m (Sep 2024: £21.660m)
● Adjusted operating profit(1) up 20.4% to £13.111m (Sep 2024: £10.894m)
● Adjusted operating profit(1) margin 51.0% (Sep 2024: 50.3%)
● Adjusted fully diluted EPS(1) increased 17.2% to 16.02p (Sep 2024: 13.67p)
● Strong financial liquidity position, net cash of £34.1m (Mar 2025: £32.1m)
● Interim dividend up 26.3% to 12.0p (Sep 2024: 9.5p)
● Strong balance sheet with net assets of £55.9m
OPERATIONAL HIGHLIGHTS
● Assets Under Management/Influence ("AUM/I(1)") increased 29.6% to £25.848bn
(Sep 2024: £19.948bn). AUM/I(1) at 31 March 2025 £21.825bn, an annualised
increase of 36.9%
● Organic net inflows were £1.684bn (Sep 2024: £1.832bn), an annualised
increase of 16.1% of opening AUM with an average run rate of £281m per month
● Current (November 2025) AUM/I(1) is £27.126bn and year to date net inflows
are £2.067bn
● Tatton's IFA firms increased by 5.4% to 1,170 (Mar 2025: 1,110) and the number
of accounts increased by 8.6% to 167,150 (Mar 2025: 153,915) in the period
● Paradigm Mortgages completions increased by 30.3% to £8.6bn (Sep 2024:
£6.6bn). Paradigm Mortgages member firms increased to 1,960 members (Mar
2025: 1,915 members)
● Paradigm Consulting members increased to 426 (Mar 2024: 425)
(1) Alternative performance measures are detailed in note 24 of the September
Interim Report & Accounts 2025
Paul Hogarth, Chief Executive Officer of Tatton Asset Management, commented:
"Tatton has delivered another strong period of growth, demonstrating the
continued strength of our proposition and the depth of our partnerships with
advisers. We remain deeply appreciative of the trust our clients place in us
to manage their investments.
"During the Period, we sustained the momentum of organic net inflows achieved
throughout last year, with inflows reaching £1.7bn. Combined with consistent
investment performance, AUM/I(1) rose to £25.8bn, a 36.9% increase on an
annualised basis.
"Our continued ability to attract new IFA firms and strengthen relationships
with existing partners highlights the scalability and resilience of our
business model. While we have previously noted that the Perspective contract
will conclude in January 2026, we remain confident in achieving our target of
£30bn of AUM/I(!) by the end of FY29.
"Paradigm has once again demonstrated its resilience, with Paradigm Mortgages
increasing completion volumes to £8.6bn during the Period, supported by solid
membership growth despite a challenging mortgage market. Paradigm Consulting
also continues to perform in line with expectations."
Commenting on Outlook, he added:
"Looking ahead, we remain mindful of the ongoing macroeconomic and
geopolitical challenges that may contribute to periods of market volatility.
Despite these external headwinds, Tatton is well positioned to build on the
strong progress made to date. Our strategy remains clear and focused,
underpinned by the structural growth in demand for financial advice and the
increasing appetite for model portfolio solutions. The Group has entered the
second half with strong momentum and confidence in delivering results in line
with market expectations for the full 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 - Nomad and Broker +44 (0) 20 3829 5000
Martin Green (Investment Banking)
Dan Bate (Investment Banking and QE)
Singer Capital Markets - Joint Broker
Charles Leigh-Pemberton / Peter Steel (Investment Banking) +44 (0) 20 7496 3000
RBC Capital Markets - Joint Broker
Oliver Hearsey / Elliot Thomas / Kathryn Deegan +44 (0) 20 7653 4000
Gracechurch Group - Financial PR and IR
Heather Armstrong / John Bick / Rebecca Scott +44 (0) 20 4582 3500
tatton@gracechurchpr.com
Trade Media Enquiries
Roddi Vaughan Thomas +44 (0) 7469 854 011
For more information, please visit: www.tattonassetmanagement.com
(http://www.tattonassetmanagement.com)
STRATEGIC REVIEW
Strong inflows and market performance drive significant growth in AUM/I(1)
The Group has carried the momentum seen in the prior years and delivered
another strong performance in the first half of the financial year. AUM/I(1)
has increase by £4.023bn in the period, following organic net inflows of
£1.684bn, investment performance of £2.058bn and an increase of 8AM AUI of
£0.281m, resulting in an annualised increase of total AUM/I(1) of 36.9%(2) to
£25.848bn (Mar 2025: £21.825bn).
Group revenue for the period increased by 18.6% to £25.691m (Sep 2024:
£21.660m). Adjusted operating profit(1) for the period increased by 20.4% to
£13.111m (Sep 2024: £10.894m), with adjusted operating profit margin(1) at
51.0% (Sep 2024: 50.3%).
Profit before tax, after the impact of share-based payment charges,
amortisation of intangibles relating to acquisitions, and net finance income,
increased to £11.674m (Sep 2024: £10.102m) and taxation charges for the
period were £3.044m (Sep 2024: £2.382m). This gives an effective tax rate of
26.1% (2024: 23.6%) when measured against profit before tax.
Basic earnings per share was 14.34p (Sep 2024: 13.03p). When adjusted for
share-based payment charges, amortisation of intangibles relating to
acquisitions, and finance costs relating to the unwinding of discounts on
deferred consideration, basic adjusted earnings per share(1) was 16.77p
(Sep 2024: 14.29p). Adjusted earnings per share fully diluted for the impact
of share options(1) was 16.02p (Sep 2024: 13.67p), an increase of 17.2%.
The Board is pleased with the progress achieved in the period, with the Group
performing comfortably in line with expectations and continuing to demonstrate
the scalability and resilience of its business model.
Tatton
Overview of performance
Tatton has delivered another period of strong growth, underpinned by sustained
organic net inflows and consistent investment performance. Revenue increased
by 20.7% to £22.348m (Sep 2024: £18.508m) and accounted for 87.0% of total
Group revenue. Adjusted operating profit(1) increased by 22.0% to £14.291m
(Sep 2024: £11.712m), delivering an adjusted operating profit margin(1) of
64.0% (Sep 2024: 63.3%).
Organic growth remained strong, with average monthly net inflows of £281m
(FY25: £307m). Total net inflows in the period were £1.684bn, equivalent to
16.1%(2) of opening AUM on an annualised basis. Combined with positive
investment performance of £2.058bn, this resulted in AUM/I(1) of £25.848bn
at 30 September 2025 (Mar 2025: £21.825bn), an annualised increase of
36.9%(2).
Tatton's ability to deliver sustained organic growth against a backdrop of
continuing macroeconomic uncertainty reflects the enduring strength of its
proposition, the scalability of its model and the continued support of its
growing community of adviser firms.
As previously announced, Tatton's longstanding relationship with Perspective
Financial Group Limited ("PFG") will conclude in January 2026. The AUM
relating to this relationship was £3.507bn as at September 2025 (Mar 2025:
£2.883bn) and it contributed £333m of net inflows in the period.
Market review
The Model Portfolio Services ("MPS") market has continued to see strong net
inflows. New flows into advised investments are increasingly being captured,
not by single-strategy funds or bespoke discretionary mandates, but by
risk-targeted model portfolios. MPS continues to grow its share of assets
at a double-digit pace and for many advice firms is now the default
recommendation to a new client.
The growth in the MPS market is being driven by three key elements: adviser
efficiency, cost transparency and regulatory alignment. Advisers are
increasingly outsourcing investment management to MPS providers to free up
capacity and provide financial planning advice, while maintaining consistent
and compliant client outcomes which, in turn, enables them to grow and scale
their businesses. At the same time, heightened fee scrutiny and demand for
demonstrable value are pushing firms toward solutions that combine
institutional-grade oversight with transparent, competitive pricing. Finally,
the Financial Conduct Authority's ("FCA") Consumer Duty regime has accelerated
this shift by requiring firms to evidence suitability, fair value and good
client outcomes. These KPIs are inherently easier to demonstrate through the
structured governance and clear target-market definitions embedded within MPS
propositions.
Tatton MPS
Tatton's commitment to the IFA sector remains unwavering. The business
continues to focus on supporting advisers in delivering cost-effective
investment outcomes for their clients through disciplined portfolio
management and a responsive service proposition. The number of IFA firms
supporting Tatton increased by 60 new firms, or 5.4%, to 1,170 (Mar 2025:
1,110), the largest six-month increase on record. This continued growth
demonstrates the strength and appeal of the Tatton business model and
reinforces its position as the UK's leading MPS provider.
IFAs continue to value the breadth and depth of Tatton's proposition. The
range now comprises 50 risk-rated portfolios across risk profiles 2 to 8,
covering a full spectrum of investment styles - active, passive, balanced,
income, ESG and global strategies. The Tatton evolved propositions,
encompassing Appointed Investment Adviser ("AIA"), Co-brand and White Label
solutions, have also continued to expand during the period, with eight new
firms adopting this service offering, and collectively accounting for over
£400m of net inflows over the six months to September 2025. This breadth of
choice enables advisers to deliver tailored, client-centric investment
outcomes while benefitting from Tatton's consistent governance and portfolio
discipline.
Tatton's scalable proposition continues to differentiate it in a competitive
market, underpinned by:
· A competitive pricing model - Tatton has consistently maintained its
management charge at 15 basis points since inception. While average market
pricing has declined to approximately 18 basis points(3), there are clear
indications that 15 basis points is becoming the benchmark level at which many
MPS providers are converging. According to NextWealth (a UK-based research
firm specialising in the wealth management sector), while competition on fees
in the market remains robust, they anticipate that market pricing has hit the
bottom and expect fees to remain stable over the medium term. This easing of
downward pricing pressure further reinforces the strength and competitiveness
of Tatton's proposition.
· Consistent long-term investment performance - Tatton's portfolios
continue to deliver strong, risk-adjusted returns, outperforming key industry
benchmarks. Tatton ranks first over one and three years, second over five
years, and third over ten years among the top ten(4) MPS providers. This
sustained outperformance across multiple time horizons reflects the strength
and discipline of Tatton's investment process and reinforces the confidence
that advisers and their clients place in the Tatton proposition.
· A leading service proposition - Tatton continues to be recognised for
excellence in service and delivery. According to Defaqto data(5), Tatton's
Core Balanced portfolio was the most recommended platform MPS solution, with
six Tatton portfolios ranked among the top ten MPS propositions. This
recognition reflects the Group's disciplined investment governance,
flexibility, and consistency of client outcomes.
Outlook
While the upcoming Autumn Budget may influence short-term investor sentiment,
it is not expected to materially affect the MPS landscape or Tatton's growth
trajectory.
Tatton enters the second half of the financial year with continued confidence
in its ability to deliver further organic growth. Supported by its scalable
business model, consistent investment performance and trusted adviser
relationships, Tatton remains well positioned to deliver sustainable long-term
growth and is on track to achieve its £30 billion AUM/I(1) target by FY29.
Paradigm
Overview of performance
Paradigm has delivered a steady and resilient performance in the period,
achieving revenue of £3.343m (Sep 2024: £3.152m) and adjusted operating
profit(1) of £0.969m (Sep 2024: £0.915m). Paradigm Mortgages participated in
mortgage completions totalling £8.6bn (H2 FY25: £7.5bn). The company
continues to deliver strong volumes of completions, supported by a growing
network of member firms and robust operational execution. Mortgage member
firms increased to 1,960 (Mar 2025: 1,915), and Consulting member firms
totalled 426 (Mar 2025: 425).
Market review
The UK Government's renewed focus on housebuilding, supported by a more
constructive regulatory environment, particularly in addressing barriers to
affordable mortgages, is an encouraging development. Also, activity among
first-time buyers remains robust, driven by high relative rental costs and the
continued impact of punitive tax measures on landlords, which have contributed
to rising rents.
This supportive backdrop, combined with a declining interest rate environment
(three rate cuts since February 2025), helped unlock pent-up demand and drive
record Paradigm mortgage applications of £11.1bn in H1 FY26, up 44% from
£7.7bn in H1 FY25.
The mortgage market opportunity in 2025 remains robust, with UK Finance
forecasting £260bn in gross lending (2024: £235bn) and a further £320bn in
maturities and refinancing opportunities, reflecting the rollover of the
2020/21 peak and 2023 two-year products. Broker activity remains healthy, and
they are reporting an increase in remortgage activity compared with
lower-margin product transfers, supported by a more stable rate environment
and improved lender affordability criteria.
More broadly, the wider market for advised mortgages also continues to remain
strong despite ongoing headwinds, now representing over 90% of all lending.
Both mainstream and specialist lenders have responded positively to the FCA's
call for simplified responsible lending, which is improving accessibility and
supporting a more stable market environment.
Outlook
While the current market backdrop remains broadly supportive, we remain
mindful of the broader economic challenges and their potential impact on
consumer confidence, particularly among home movers and first-time purchasers.
Nevertheless, Paradigm is well positioned to navigate these dynamics,
supported by a loyal and growing network of member firms, deep lender
relationships, and a strong reputation for service and operational excellence.
Our focus remains on delivering value to our members through high-quality
support and access to competitive lending solutions. We continue to invest in
strengthening our proposition, enhancing adviser engagement and broadening our
consulting capabilities to capture opportunities as market
conditions evolve.
Looking ahead, Paradigm is well placed to benefit from any improvement in
market conditions, and we are optimistic that the division can sustain
performance and continue contributing to the Group's growth and long-term
success.
Separately disclosed items and alternative performance measures
Alternative performance measures ("APMs") provide additional information to
investors and other external shareholders to support further understanding of
the Group's results of operations as supplemental measures of performance. The
APMs are used by the Board and management to analyse the business and
financial performance, track the Group's progress and help develop long-term
strategic plans. Some APMs are also used as key management incentive metrics.
Separately disclosed items are adjusting items to operating profit and total
£1.923m. These items include the cost of share-based payments of £1.562m and
amortisation of acquisition-related intangible assets of £0.329m. An
adjustment has also been made to remove the operating loss relating to the
non-controlling interest in Fintegrate Financial Solutions Limited
("Fintegrate") of £0.032m to reflect the adjusted operating profit(1)
attributable to shareholders of Tatton Asset Management plc.
Statement of financial position and cash
The Group's balance sheet remains strong, with net assets of £55.9m (Mar
2025: £50.6m) and cash of £34.1m (Mar 2025: £32.1m). Our financial
resources are kept under continual review, ensuring that there is headroom
over the regulatory capital requirements at both a Group and entity
level. Comprehensive stress and scenario testing is formally reviewed and
conducted at least annually. As at 30 September 2025, our total
qualifying capital resources were £26.5m, being 386% of our requirement
of £5.5m.
Issue of new shares
In the period, the Group issued 415,407 new shares, which were issued to
satisfy the exercise of options related to the Company's Save As You Earn
("SAYE") and employee share option schemes.
Dividend proposal
In this interim period, the Board recommends an increase in the interim
dividend to 12.0p (Sep 2024: 9.5p), an increase of 26.3%. This dividend
reflects our ongoing policy of paying a c.70% of adjusted earnings
split evenly between the interim and final dividend. The proposed dividend
reflects the confidence of the Board in the Group's financial performance,
high levels of cash and liquidity, and headroom over our regulatory capital
requirement.
The interim dividend of 12.0p per share, totalling £7.3m, will be paid on 19
December 2025 to shareholders on the register at close of business on 28
November 2025 and will have an ex-dividend date of 27 November 2025. In
accordance with International Financial Reporting Standards ("IFRSs"),
the interim dividend has not been included as a liability in this
interim statement.
Business risk
The Board identified principal risks and uncertainties which may have a
material impact on the Group's performance in the Group's 2025 Annual Report
and Accounts (pages 26 to 31) and believes that the nature of these risks
remains largely unchanged at the half year. The Board will continue to monitor
and manage identified principal risks throughout the second half of the year.
Post balance sheet events
There have been no post balance sheet events.
Going concern
As stated in note 2.2 of these condensed financial statements, the Directors
believe that the business is well placed to manage its business risk
successfully and are satisfied that the Group has adequate resources to
continue in operational existence for at least twelve months from the date
that the financial statements are authorised for issue. Accordingly, these
condensed financial statements have been prepared on a going concern basis.
Summary and outlook
The first half of FY26 has delivered another period of strong growth, with
Tatton achieving substantial net inflows and market-driven gains, while
Paradigm maintained resilience in a subdued mortgage environment.
Tatton enters the second half with positive momentum and confidence in
delivering results in line with market expectations for the full year. The
Group remains focused on executing its long-term growth strategy, maintaining
operational excellence and further deepening relationships with IFAs.
The Board remains confident in achieving the £30 billion AUM/I(1) target by
FY29 and continuing to deliver sustainable growth and shareholder value.
1. Alternative performance measures are detailed in note 24.
2. Annualised growth calculated by compounding six-month growth over a
full year.
3. NextWealth MPS Proposition Comparison Report December 2024.
4. Citywire: Tatton's MPS assets are surging - does it deliver
performance to match? October 2025.
5. Defaqto reveals top 10 most recommended MPS 20 July 2025.
FINANCIAL STATEMENTS
INDEPENDENT REVIEW REPORT TO TATTON ASSET MANAGEMENT PLC
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30th
September 2025 which comprises the Consolidated Statement of Total
Comprehensive Income, the Consolidated Statement of Financial Position, the
Consolidated Statement of Changes in Equity, the Consolidated Statement of
Cash Flows, and the related notes 1 to 24.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30th September 2025 is not prepared,
in all material respects, in accordance with United Kingdom adopted
International Accounting Standard 34 and the AIM Rules of the London Stock
Exchange.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with United Kingdom adopted International Accounting
Standards ("IAS") and International Financial Reporting Interpretations
Committee ("IFRIC") interpretations issued by the International Accounting
Standards Board ("IASB"). The condensed set of financial statements included
in this half-yearly financial report has been prepared in accordance with
United Kingdom adopted International Accounting Standard 34, "Interim
Financial Reporting".
Conclusion relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the AIM rules of the London Stock Exchange.
In preparing the half-yearly financial report, the directors are responsible
for assessing the group's ability to continue as a going concern, disclosing
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our Conclusion, including our
Conclusion relating to going concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for conclusion
paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
Manchester, United Kingdom
17 November 2025
CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME FOR THE SIX MONTHS
ENDED 30 SEPTEMBER 2025
Note Unaudited six months ended Unaudited six months ended Audited year ended
30-Sep 2025 30-Sep 2024 31-Mar 2025
(£'000) (£'000) (£'000)
Revenue 6 25,691 21,660 45,309
Share of profit from joint venture 10 (69) (81) (148)
Administrative expenses (14,434) (11,939) (24,475)
Operating profit 11,188 9,640 20,686
Share-based payment charges 5, 18 1,562 843 1,503
Amortisation of acquisition-related intangible assets 5 329 329 657
Operating loss relating to non-controlling interest 5 32 82 100
Adjusted operating profit(1) 13,111 10,894 22,946
Finance income 560 485 1,033
Finance costs(2) (74) (23) (123)
Profit before tax 11,674 10,102 21,596
Taxation charge 7 (3,044) (2,382) (5,594)
Profit and total comprehensive income for the financial year 8,630 7,720 16,002
Profit and total comprehensive income attributable to the owners 8,668 7,806 16,141
of the parent company
Profit and total comprehensive loss attributable to non-controlling interests (38) (86) (139)
Earnings per share - basic 8 14.34p 13.03p 26.43p
Earnings per share - diluted 8 13.89p 12.69p 26.21p
Adjusted earnings per share - basic(1) 8 16.77p 14.29p 29.42p
Adjusted earnings per share - diluted(1) 8 16.24p 13.91p 29.17p
Adjusted earnings per share - fully diluted(1) 8 16.02p 13.67p 28.65p
1. Alternative performance measures are detailed in note 24.
2. Finance costs include lease interest expense, unwinding of discount
rate, and interest payable.
All revenue, profit and earnings are with respect to continuing operations.
There were no other recognised gains or losses other than those recorded above
in the current or prior period; therefore, a Statement of Other Comprehensive
Income has not been presented.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2025
Note Unaudited Unaudited 30-Sep 2024 Audited
30-Sep 2025 (£'000) 31-Mar 2025
(£'000) (£'000)
Non-current assets
Investment in joint ventures 10 5,213 5,298 5,256
Goodwill 11 9,796 9,796 9,796
Intangible assets 12 3,360 3,510 3,493
Property, plant and equipment 13 923 700 932
Deferred tax assets 2,343 3,174 2,883
Total non-current assets 21,635 22,478 22,360
Current assets
Trade and other receivables 14 8,156 5,268 6,538
Financial assets at fair value through profit or loss 16 1,246 1,132 1,133
Corporation tax 1,804 200 291
Cash and cash equivalents 34,050 26,916 32,119
Total current assets 45,256 33,516 40,081
Total assets 66,891 55,994 62,441
Current liabilities
Trade and other payables 15 (10,450) (7,626) (11,232)
Total current liabilities (10,450) (7,626) (11,232)
Non-current liabilities
Other payables 15 (525) (982) (657)
Total non-current liabilities (525) (982) (657)
Total liabilities (10,975) (8,608) (11,889)
Net assets 55,916 47,386 50,552
Equity
Share capital 12,193 12,110 12,110
Share premium account 15,723 15,614 15,614
Own shares - (2,695) (2,363)
Other reserve 2,041 2,041 2,041
Merger reserve (28,968) (28,968) (28,968)
Retained earnings 54,969 49,312 52,156
Equity attributable to owners of the parent company 55,958 47,414 50,590
Non-controlling interest (42) (28) (38)
Total equity 55,916 47,386 50,552
The financial statements were approved by the Board of Directors on 17
November 2025 and were signed on its behalf by
Paul Edwards
Director
Company registration number: 10634323
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30
SEPTEMBER 2025
Note Share capital Share premium Own shares Other reserve Merger reserve Retained earnings Total equity attributable to shareholders Non-controlling interest Total equity
(£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000) (£'000)
At 1 April 2024 (audited) 12,102 15,487 (3,278) 2,041 (28,968) 45,892 43,276 58 43,334
Profit and total comprehensive income - - - - - 7,806 7,806 (86) 7,720
Dividends 9 - - - - - (4,740) (4,740) - (4,740)
Share-based payments 18 - - - - - 438 438 - 438
Deferred tax on share-based payments - - - - - 574 574 - 574
Current tax on share-based payments - - - - - (75) (75) - (75)
Issue of share capital on exercise of employee share options 17 8 127 - - - - 135 - 135
Own shares acquired in the period - - 583 - - (583) - - -
At 30 September 2024 (unaudited) 12,110 15,614 (2,695) 2,041 (28,968) 49,312 47,414 (28) 47,386
Profit and total comprehensive income - - - - - 8,335 8,335 (53) 8,282
Dividends 9 - - - - - (5,700) (5,700) - (5,700)
Share-based payments 18 - - - - - 722 722 50 772
Deferred tax on share-based payments - - - - - (371) (371) - (371)
Current tax on share-based payments - - - - - 233 233 - 233
Own shares acquired in year - - (50) - - - (50) - (50)
Own shares utilised on exercise of options - - 382 - - (382) - - -
Change in non-controlling interest - - - - - 7 7 (7) -
At 31 March 2025 (audited) 12,110 15,614 (2,363) 2,041 (28,968) 52,156 50,590 (38) 50,552
Profit and total comprehensive income - - - - - 8,668 8,668 (38) 8,630
Dividends 9 - - - - - (5,707) (5,707) - (5,707)
Share-based payments 18 - - - - - 1,069 1,069 - 1,069
Deferred tax on share-based payments - - - - - (422) (422) - (422)
Current tax on share-based payments - - - - - 923 923 - 923
Issue of share capital on exercise of employee share options 17 83 109 (76) - - - 116 - 116
Own shares utilised in the period - - 2,439 - - (1,716) 723 - 723
Impact of changes in minority interests on share issue - - - - - (2) (2) 34 32
At 30 September 2025 (unaudited) 12,193 15,723 - 2,041 (28,968) 54,969 55,958 (42) 55,916
The other reserve and merger reserve were created on 19 June 2017 when the
Group was formed. The other reserve comprises the profits of the Group
entities prior to the merger, and the merger reserve is the difference between
the Company's capital and the acquired Group's capital, which has been
recognised as a component of equity. The merger reserve was created through
merger accounting principles on the share for share exchange on the formation
of the Group. Both the other reserve and the merger reserve are
non-distributable.
During the year, the Group's investment in Fintegrate Financial Solutions
Limited changed from 53.36% to 54.37%. In the financial year 2025, the
investment changed from 56.49% to 53.36%.
Own shares utilised refers to transactions with the Group's Employee Benefit
Trust to satisfy the exercise of options in the period.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
Note Unaudited six months ended Unaudited six months ended Audited year ended
30-Sep 2025 30-Sep 2024 31-Mar 2025
(£'000) (£'000) (£'000)
Operating activities
Cash generated from operations 23 10,270 10,233 24,641
Income tax paid (3,541) (2,715) (5,889)
Net cash from operating activities 6,729 7,518 18,752
Investing activities
Purchase of intangible assets 12 (206) (125) (437)
Purchase of property, plant and equipment 13 (138) (36) (68)
Payments for financial assets at fair value through profit or loss - (1,000) (1,000)
Interest received 560 510 1,033
Contingent consideration - - (530)
Net cash from/(used in) investing activities 216 (651) (1,002)
Financing activities
Dividends paid 9 (5,707) (4,740) (10,440)
Proceeds from the issue of shares - 88 135
Proceeds from the exercise of options 840 - 125
Proceeds from the issue of shares in subsidiary 32 - -
Purchase of own shares - - (50)
Repayment of the loan liabilities (17) (19) (23)
Repayment of the lease liabilities 13 (162) (118) (216)
Net cash used in financing activities (5,014) (4,789) (10,469)
Net increase in cash and cash equivalents 1,931 2,078 7,281
Cash and cash equivalents at beginning of period 32,119 24,838 24,838
Net cash and cash equivalents at end of period 34,050 26,916 32,119
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. General information
Tatton Asset Management plc (the "Company") is a public company limited by
shares. The address of the registered office is Paradigm House, Brooke Court,
Lower Meadow Road, Wilmslow, SK9 3ND. The registered number is 10634323.
The Group comprises the Company and its subsidiaries. The Group's principal
activities are discretionary fund management, the provision of compliance and
support services to independent financial advisers ("IFAs"), the provision of
mortgage adviser support services and the marketing and promotion of
multi-manager funds.
The condensed consolidated interim financial statements for the six months
ended 30 September 2025 have been prepared in accordance with applicable
accounting standards and do not constitute statutory accounts as defined under
section 434 of the Companies Act 2006. An interim review of these financial
statements has been conducted by the Company's auditor, Deloitte LLP, in
accordance with International Standard on Review Engagements (UK) 2410. This
review included procedures to verify the reported profit for the period and to
assess the consistency of accounting policies and disclosures with those
applied in the annual financial statements.
The Annual Report and Accounts for the year ended 31 March 2025 (the
"financial statements") were approved by the Board on 9 June 2025 and have
been delivered to the Registrar of Companies. The auditor, Deloitte LLP,
reported on those financial statements; its report was unqualified, did not
contain an emphasis of matter paragraph, and did not include statements under
section 498 (2) or (3) of the Companies Act 2006.
News updates, regulatory news and financial statements can be viewed and
downloaded from the Group's website, www.tattonassetmanagement.com. Copies can
also be requested from: The Company Secretary, Tatton Asset Management plc,
Paradigm House, Brooke Court, Lower Meadow Road, Wilmslow, SK9 3ND.
2. Accounting policies
The principal accounting policies applied in the presentation of the interim
financial statements are set out below. The accounting policies set out below
have, unless otherwise stated, been applied consistently to all periods
presented in the consolidated financial statements.
2.1 Basis of preparation
The condensed consolidated interim financial statements for the six months
ended 30 September 2025 have been prepared in accordance with International
Accounting Standards ("IAS") 34 'Interim Financial Reporting' as adopted by
the United Kingdom. The condensed consolidated interim financial statements
should be read in conjunction with the financial statements for the year ended
31 March 2025, which have been prepared in accordance with International
Financial Reporting Standards ("IFRSs") as adopted by the United Kingdom. The
condensed consolidated interim financial statements were approved for release
on 17 November 2025.
The condensed consolidated interim financial statements have been prepared on
a going concern basis and prepared on a historical cost basis, except for
financial assets and financial liabilities measured at fair value. The
condensed consolidated interim financial statements are presented in
sterling and have been rounded to the nearest thousand (£'000).
The functional currency of the Company is sterling as this is the currency of
the jurisdiction wherein all of the Group's sales are made.
The preparation of financial information in conformity with IFRSs requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Although these estimates are based on management's best knowledge of the
amount, event or actions, actual events may ultimately differ from those
estimates.
The key accounting policies set out below have, unless otherwise stated, been
applied consistently to all periods presented in the condensed consolidated
interim financial statements.
The accounting policies adopted by the Group in these condensed consolidated
interim financial statements are consistent with those applied by the
Group in its consolidated financial statements for the year ended 31 March
2025.
2.2 Going concern
The Board has reviewed detailed papers prepared by management that consider
the Group's expected future profitability, dividend policy, capital position
and liquidity, both as they are expected to be and also under more stressed
conditions. In doing so, the Directors have considered the current economic
environment, with its high interest rates, high yet falling inflation, cost of
living pressures, and the impact of climate change.
Whilst macroeconomic conditions and the impact of climate change may affect
the Group, and are considered under the Group's principal risks, these are not
considered to impact the going concern basis of the Group - the Board is
satisfied that the business can operate successfully in these conditions but
will continue to monitor developments in these areas. The Board uses the
approved budget as its base case and then applies stress tests to this. In its
stress tests, the Board has considered a significant reduction in equity
market values, for example if there was a repeat of market impacts seen at the
start of COVID-19, or sudden and high volumes of outflows from AUM as a result
of reputational, regulatory or performance issues. This would reduce revenue
and profitability, however the results of these tests show that there are
still sufficient resources to continue as a going concern. There are not
considered to be any reasonably plausible scenarios which would lead to the
failure of the Company within twelve months. The Board closely monitors KPIs
and reports from management around investment performance, feedback from IFAs
and key regulatory changes or issues. Accordingly, the Directors continue to
adopt the going concern basis in preparing these condensed consolidated
interim financial statements.
2.3 Adoption of new and revised Standards
New and amended IFRS Standards that are effective for the current year
· Amendments to IAS 21 - Lack of Exchangeability
· Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of
Financial Instruments
· Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent
Electricity
· Minor amendments to IFRS 1 - First-time Adoption of IFRS
· Minor amendments to IFRS 7 - Financial Instruments: Disclosures
· Minor amendments to IFRS 9 - Financial Instruments
· Minor amendments to IFRS 10 - Consolidated Financial Statements
· Minor amendments to IAS 7 - Statement of Cash Flows
The Directors adopted the new or revised Standards listed above, but they
have had no material impact on the financial statements of the Group.
Standards in issue but not yet effective
The following IFRS and International Financial Reporting Interpretations
Committee ("IFRIC") interpretations have been issued but have not been applied
by the Group in preparing these financial statements, as they are not yet
effective. The Group intends to adopt these Standards and Interpretations when
they become effective, rather than adopting them early.
Effective date periods beginning 1 January 2026 or later:
· IFRS 18 - Presentation and Disclosure in Financial Statements
· IFRS 19 - Subsidiaries without Public Accountability: Disclosures
· Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of
Financial Instruments
· Contracts Referencing Nature-dependent Electricity - Amendments to IFRS 9
and IFRS 7
· Sale or Contribution of Assets between an Investor and its Associate or
Joint Venture - Amendments to IFRS 10 and IAS 28
With the exception of the adoption of IFRS 18, the adoption of the above
Standards and Interpretations is not expected to lead to any changes to the
Group's accounting policies, nor have any other material impact on the
financial position or performance of the Group. The impact of IFRS 18 on the
Group is currently being assessed, and it is not yet practicable to quantify
the effect of this standard on these consolidated financial statements;
however, there is no impact on the presentation for the Group in the current
year, given the effective date - this will be applicable for the Group's
2027/28 Annual Report.
2.4 Operating segments
The Board is considered to be the chief operating decision maker ("CODM"). The
Group comprises two operating segments, which are defined by trading activity:
· Tatton - investment management services
· Paradigm - the provision of compliance and support services to IFAs and
mortgage advisers
Some centrally incurred overhead costs are allocated to the Tatton and
Paradigm divisions on an appropriate pro rata basis. There remain central
overhead costs within the operating group that have not been allocated to the
Tatton and Paradigm divisions, which are classified as "Unallocated" within
note 4.
2.5 Significant judgements, key assumptions and estimates
In the process of applying the Group's accounting policies, which are
described in the consolidated financial statements for the year ended 31 March
2025, management have made judgements and estimations about the future that
have an effect on the amounts recognised in the financial statements. The
estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period, or in the period
of the revision and future periods if the revision affects both current and
future periods. Changes for accounting estimates would be accounted for
prospectively under IAS 8.
The judgements, estimates and assumptions applied in the condensed interim
financial statements, including the key sources of estimation uncertainty,
were the same as those applied in the Group's last annual financial statements
for the year ended 31 March 2025. Management have reviewed those key estimates
which were disclosed in the 31 March 2025 financial statements and are
satisfied that the methodology applied, and criteria assessed, are still
appropriate.
3. Capital management
The components of the Group's capital are detailed on the Consolidated
Statement of Financial Position, and as at the reporting date the Group had
capital of £55,916,000 (March 2025: £50,552,000; September 2024:
£47,386,000). Capital generated from the business is both reinvested in the
business to generate future growth and returned to shareholders, principally
in the form of dividends.
The Group's objectives when managing capital are: (i) to safeguard
the Group's ability to continue as a going concern so that it can continue to
provide returns for shareholders and benefits for other stakeholders; (ii) to
maintain a strong capital base and utilise it efficiently to support the
development of its business; and (iii) to comply with the regulatory capital
requirements set by the FCA. Capital adequacy and the use of regulatory
capital are monitored by the Group's management and Board. There is one active
regulated entity in the Group: Tatton Investment Management Limited, regulated
by the FCA.
Regulatory capital is determined in accordance with the requirements of the
FCA's Investment Firms Prudential Regime and the Capital Requirements
Directive IV prescribed in the UK by the FCA. The Directive requires continual
assessment of the Group's risks that is underpinned by the Group's internal
capital adequacy and risk assessment ("ICARA"). The ICARA considers the
relevant current and future risks to the business and the capital considered
necessary to support these risks.
The Group actively monitors its capital base to ensure that it maintains
sufficient and appropriate capital resources to cover the relevant risks to
the business and to meet consolidated and individual regulated entity
regulations and liquidity requirements. The Group assesses the adequacy of its
own funds on a consolidated and legal entity basis frequently. This includes
continuous monitoring of "K-factor" variables, which captures the variable
nature of risk involved in the Group's business activities. A regulatory
capital update is additionally provided to senior management on a monthly
basis. In addition to this, the Group has implemented a number of "Key Risk
Indicators", which act as early warning signs, with the aim of notifying
senior management if the Group's own funds misalign with the Group's risk
appetite and internal thresholds.
The FCA requires the Group to hold more regulatory capital resources than the
total capital resource requirement. The total capital requirement for the
Group is the higher of the Group's own funds requirement (based on 25% of
fixed overheads), its own harm requirement (based on the Group's requirement
for harms from ongoing activities as calculated in the ICARA) and wind-down
requirement (capital requirement should the firm wind-down). The total capital
resource requirement for the Group is £5.5 million (unaudited), which is
based on the Group's fixed overhead requirement. As at 30 September 2025, the
Group has regulatory capital resources of £26.5 million (unaudited),
significantly in excess of the Group's total regulatory capital resource
requirement. During the period, the Group and its regulated subsidiary
entities complied with all regulatory capital resource requirements.
4. Segment reporting
Information reported to the Board of Directors as the CODM for the purposes
of resource allocation and assessment of segmental performance is focused on
the type of revenue. The principal types of revenue are discretionary fund
management and the marketing and promotion of the funds run by the companies
under Tatton Capital Limited ("Tatton") and the provision of compliance,
technological and support services to IFAs and mortgage advisers ("Paradigm").
The Group's reportable segments under IFRS 8 are, therefore, Tatton and
Paradigm, with centrally incurred overhead costs applicable to the segments
being allocated to the Tatton and Paradigm divisions on an appropriate pro
rata basis. Unallocated central overhead costs of the operating group are
classified as "Unallocated" in the table to provide a reconciliation of the
segment information to the financial statements. Unallocated costs include
general corporate expenses, head office salaries, and other administrative
costs that are not directly attributable to the operating segments. These
costs are managed at the corporate level and are not allocated to the segments
for performance evaluation.
The principal activity of Tatton is that of discretionary fund management
("DFM") of investments on-platform and the provision of investment wrap
services.
The principal activity of Paradigm is that of the provision of support
services to IFAs and mortgage advisers. The Paradigm division includes the
trading subsidiaries of Paradigm Partners Limited ("PPL"), Paradigm Mortgages
Services LLP ("PMS") and Fintegrate Financial Solutions Ltd ("FFS"). PPL and
PMS operate as one operating segment as they have the same economic
characteristics, they are run and managed by the same management team, and the
methods used to distribute the products to customers are the same. FFS
provides technological support to IFAs, which is an advisory support service,
and has been included within the Paradigm division.
The information presented in this note is consistent with the presentation for
internal reporting. Total assets and liabilities for each operating segment
are not regularly provided to the CODM.
Period ended Tatton Paradigm Unallocated Group
30 September 2025 (unaudited)
(£'000)
(£'000)
(£'000)
(£'000)
Revenue 22,348 3,343 - 25,691
Share of post-tax profit from joint ventures (69) - - (69)
Administrative expenses (8,593) (2,566) (3,275) (14,434)
Operating profit/(loss) 13,686 777 (3,275) 11,188
Share-based payment costs 294 142 1,126 1,562
Amortisation of acquisition-related intangibles assets 311 18 - 329
Non-controlling interest - 32 - 32
Adjusted operating profit/(loss)¹ 14,291 969 (2,149) 13,111
Period ended Tatton Paradigm (£'000) Unallocated (£'000) Group
30 September 2025
(£'000)
(£'000)
Statutory operating costs included the following:
Depreciation 32 12 103 147
Amortisation 304 33 106 443
Period ended 30 September 2024 (unaudited) Tatton Paradigm (£'000) Unallocated (£'000) Group
(£'000)
(£'000)
Revenue 18,508 3,152 - 21,660
Share of post-tax profit from joint ventures (81) - - (81)
Administrative expenses (7,209) (2,419) (2,311) (11,939)
Operating profit/(loss) 11,218 733 (2,311) 9,640
Share-based payment costs 183 82 578 843
Amortisation of acquisition-related intangibles assets 311 18 - 329
Non-controlling interest - 82 - 82
Adjusted operating profit/(loss)(1) 11,712 915 (1,733) 10,894
Period ended 30 September 2024 Tatton Paradigm (£'000) Unallocated (£'000) Group
(£'000)
(£'000)
Statutory operating costs included the following:
Depreciation 97 47 8 152
Amortisation 385 20 - 405
Year ended Tatton (£'000) Paradigm (£'000) Unallocated (£'000) Group (£'000)
31 March 2025
(audited)
Revenue 38,987 6,322 - 45,309
Share of post-tax profit from joint ventures (148) - - (148)
Administrative expenses (14,974) (4,779) (4,722) (24,475)
Operating profit/(loss) 23,865 1,543 (4,722) 20,686
Share-based payment costs 397 157 949 1,503
Amortisation of acquisition-related intangibles assets 621 36 - 657
Non-controlling interest - 100 - 100
Adjusted operating profit/(loss)(1) 24,883 1,836 (3,773) 22,946
Period ended Tatton Paradigm (£'000) Unallocated (£'000) Group
31 March 2025
(£'000)
(£'000)
Statutory operating costs included the following:
Depreciation 64 58 169 291
Amortisation 782 53 2 837
1. Alternative performance measures are detailed in note 24.
All turnover arose in the United Kingdom.
Adjusted operating profit is one of the APMs that the business uses. Full
details of the KPIs and APMs that the key decision makers use are detailed in
note 24.
5. Separately disclosed items
Unaudited six months ended Unaudited six months ended 30-Sep 2024 Audited year ended 31-Mar 2025
30-Sep 2025
(£'000)
(£'000)
(£'000)
Share-based payments charges 1,562 843 1,503
Amortisation of acquisition-related intangible assets 329 329 657
Operating loss due to non‑controlling interest 32 82 100
Total separately disclosed items 1,923 1,254 2,260
Separately disclosed items that are shown separately on the face of the
Statement of Total Comprehensive Income reflect costs and income that do not
reflect the Group's trading performance and may be considered material
(individually or in aggregate if of a similar type) due to their size or
frequency, and are adjusted to present adjusted operating profit so as to
ensure consistency between periods. The costs or income above are all included
within administrative expenses.
Although some of these items may reoccur from one period to the next,
operating profit has been adjusted for these items to give better clarity
regarding the underlying performance of the Group. The APMs are consistent
with how the business performance is planned and reported within the internal
management reporting to the Board. Some of these measures are also used for
the purpose of setting remuneration targets.
Share-based payment charges
Share-based payments is a recurring item, although the value will change
depending on the estimation of the satisfaction of performance obligations
attached to certain awards. It is an adjustment to operating profit since it
is a significant non-cash item. Adjusted operating profit represents largely
cash-based earnings and more directly relates to the trading performance of
the financial reporting period.
Operating loss due to non-controlling interest
The Group's operating profit includes £32,000 of losses relating to
the non-controlling interest in Fintegrate Financial Solutions Limited
(September 2024: £82,000). This has been excluded from the Group's adjusted
operating profit to reflect the adjusted operating profit attributable to the
shareholders of the Company.
Amortisation of acqusition-related intangible assets
Payments made for the introduction of client relationships and brands that are
deemed to be intangible assets are capitalised and amortised over their useful
life, which has been assessed to be ten years. This includes £104,000
(September 2024: £104,000) of amortisation of the intangibles recognised on
the acquisition of 8AM Global Limited ("8AM"), where the amortisation charge
is included within the share of profit from joint venture on the Consolidated
Statement of Total Comprehensive Income. This amortisation charge is recurring
over the life of the intangible asset, although it is an adjustment to
operating profit since it is a significant non-cash item. Adjusted operating
profit represents largely cash-based earnings and more directly relates to the
trading performance of the financial reporting period.
6. Revenue
The disaggregation of consolidated revenue is as follows:
Operating segment Major product/service lines Unaudited six months ended Unaudited six months ended 30-Sep 2024 (£'000) Audited year ended
30-Sep 2025 (£'000) 31-Mar 2025 (£'000)
Tatton Investment management fees 22,348 18,508 38,987
Paradigm IFA consulting and support services income 1,190 1,205 2,342
Paradigm Mortgage-related services income 1,800 1,549 3,200
Paradigm Marketing income 353 398 780
25,691 21,660 45,309
The disclosure of revenue by product line is consistent with the revenue
information that is disclosed for each reportable segment under IFRS 8
'Operating segments' (see note 4). All the revenue relates to trading
undertaken in the UK. For full disclosure of revenue accounting policies see
notes 2.5 and 5 of the 2025 Annual Report and Accounts.
7. Taxation
Unaudited six months ended Unaudited six months ended 30-Sep 2024 Audited year ended
30-Sep 2025
(£'000)
(£'000) 31-Mar 2025
(£'000)
Current tax expense
Current tax on profits for the period 2,952 2,609 5,792
Adjustment for under-provision in prior periods - (173) (37)
2,952 2,436 5,755
Deferred tax expense
Current year charge/(credit) 92 (54) (164)
Adjustment in respect of previous years - - 3
92 (54) (161)
Total tax expense 3,044 2,382 5,594
The reasons for the difference between the actual tax charge for the period
and the standard rate of corporation tax in the United Kingdom applied to
profit for the period are as follows:
Unaudited six months ended Unaudited six months ended Audited year ended
30-Sep 2025
30-Sep 2024
31-Mar 2025
(£'000)
(£'000)
(£'000)
Profit before taxation 11,674 10,102 21,596
Tax at UK Corporation tax rate of 25% 2,919 2,526 5,399
Expenses not deductible for tax purposes 111 51 60
Income not taxable - - (14)
Adjustments in respect of previous years - (173) (45)
Capital allowances in excess of depreciation 27 (12) 5
Deferred tax asset not recognised - - 157
Share-based payments (13) (10) 32
Total tax expense 3,044 2,382 5,594
The deferred tax asset for all periods has been calculated based on this
rate, reflecting the expected timing of reversal of the related temporary
differences.
8. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares
during the period.
Number of shares
Number of shares Unaudited six months ended Unaudited six months ended Audited year ended
30-Sep
30-Sep
31-Mar
2025
2024
2025
Basic
Weighted average number of shares in issue(1) 60,653,902 60,517,749 61,623,021
Effect of own shares held by an EBT (225,814) (601,783) (562,061)
60,428,088 59,915,966 61,060,960
Diluted
Effect of weighted average number of options outstanding for the year 1,987,800 1,607,132 531,198
Weighted average number of shares in issue (diluted)(2) 62,415,888 61,523,098 61,592,158
Fully diluted
Effect of full dilution of employee share options which are contingently 869,583 1,095,272 1,109,396
issuable or have future attributable service costs
Adjusted diluted weighted average number of options and shares for the 63,285,471 62,618,370 62,701,554
year(3)
1. The weighted average number of shares in issue includes contingently
issuable shares where performance obligations have been met and there will be
little to no cash consideration, but the share options have yet to be
exercised.
2. The weighted average number of shares is diluted due to the effect of
potentially dilutive contingent issuable shares from share option schemes.
3. The dilutive shares used for this measure differ from that used for
statutory dilutive earnings per share; the future value of service costs
attributable to employee share options is ignored, and contingently issuable
shares for long-term incentive plan options are assumed to fully vest.
Own shares held by an EBT represents the Company's own shares purchased and
held by the Employee Benefit Trust ("EBT"), shown at cost. In the interim
period ended 30 September 2025, 379,801 own shares had been purchased
(September 2024: nil; March 2025: 7,664).
The Company utilised 852,605 (September 2024: 117,084; March 2025: 193,660) of
the shares during the year to satisfy the exercise of employee share options.
At September 2025, none (September 2024: 541,716; March 2025: 472,804) of the
Company's own shares were held by the EBT.
Unaudited six months ended Unaudited six months ended 30-Sep Audited
30-Sep
2024
year ended
2025
31-Mar
2025
Earnings attributable to ordinary shareholders
Basic and diluted profit for the period 8,668 7,806 16,141
Share-based payments (note 18) 1,562 843 1,503
Amortisation of acquisition-related intangibles (note 5) 329 329 657
Unwinding of discount on deferred consideration (note 16) 24 23 47
Tax impact of adjustments (448) (440) (382)
Adjusted basic and diluted profits for the period and attributable earnings 10,135 8,561 17,966
Earnings per share (pence) - basic 14.34 13.03 26.43
Earnings per share (pence) - diluted 13.89 12.69 26.21
Adjusted earnings per share (pence) - basic 16.77 14.29 29.42
Adjusted earnings per share (pence) - diluted 16.24 13.91 29.17
Adjusted earnings per share (pence) - fully diluted 16.02 13.67 28.65
9. Dividends
The Directors consider the Group's capital structure and dividend policy at
least twice a year ahead of announcing results and do so in the context of its
ability to continue as a going concern, to execute its strategy and to invest
in opportunities to grow the business and enhance shareholder value. The
Company's dividend policy is described in the Directors' Report on page 73 of
the 2025 Annual Report and Accounts. As at 30 September 2025, the Company's
distributable reserves were £13,213,000 (March 2025: £9,074,000).
During the period, Tatton Asset Management plc paid the final dividend related
to the year ended 31 March 2025 of £5,707,000, representing a payment of 9.5p
per share.
During the year ended 31 March 2025, £4,740,000 was paid as the
final dividend related to the year ended 31 March 2024, representing 8.0p per
share. In addition, the Company paid an interim dividend of £5,700,000
relating to the year ended 31 March 2025 (2024: £4,481,000) to its equity
shareholders. This represents a payment of 9.5p per share (2024: 8.0p per
share).
The Directors are proposing an interim dividend with respect to the financial
year ended 31 March 2026 of 12.0p (2025: 9.5p) per share, which will absorb
£7,300,000 (2024: £5,700,000) of shareholders' funds. It will be paid on 19
December 2025 to shareholders who are on the register of members on 28
November 2025.
10. Investment in joint ventures
Unaudited Unaudited Audited
30-Sep 2025
30-Sep 2024
31-Mar 2025
(£'000)
(£'000)
(£'000)
Opening investment 5,256 5,352 5,352
Profit for the period after tax 35 23 59
Amortisation of intangible assets relating to joint ventures (104) (104) (207)
Deferred tax credit on amortisation of intangible assets relating to 26 27 52
joint ventures
Closing investment 5,213 5,298 5,256
11. Goodwill
Goodwill
(£'000)
Cost and carrying value at 31 March 2024, 30 September 2024, 31 March 2025 and 9,796
30 September 2025
The carrying value of goodwill includes £8.9m allocated to the Tatton
operating segment and cash-generating unit ("CGU"). This is made up of £2.5m
arising from the acquisition in 2014 of an interest in Tatton Oak Limited by
Tatton Capital Limited, consisting of the future synergies and forecast
profits of the Tatton Oak business, £2.0m arising from the acquisition in
2017 of an interest in Tatton Capital Group Limited, £1.4m of goodwill
generated on the acquisition of Sinfonia, and £3.0m of goodwill generated on
the acquisition of the Verbatim funds business.
The carrying value of goodwill also includes £0.4 million allocated to the
Paradigm operating segment and CGU relating to the acquisition of Paradigm
Mortgage Services LLP, and £0.5m of goodwill generated on the acquisition of
56.49% of Fintegrate Financial Solutions Limited.
Goodwill relating to 8AM Global Limited is shown within the Investments in
joint ventures (see note 10).
None of the goodwill is expected to be deductible for income tax purposes.
Impairment loss and subsequent reversal
Goodwill is subject to an annual impairment review based on an assessment of
the recoverable amount from future trading. Where, in the opinion of the
Directors, the recoverable amount from future trading does not support the
carrying value of the goodwill relating to a subsidiary company, then an
impairment charge is made. Such an impairment is charged to the Statement
of Total Comprehensive Income.
Impairment testing
For the purpose of impairment testing, goodwill is allocated to the Group's
operating companies that represent the lowest level within the Group at which
the goodwill is monitored for internal management accounts purposes. Goodwill
acquired in a business combination is allocated, at acquisition, to the CGUs
or group of units that are expected to benefit from that business combination.
The Directors test goodwill annually for impairment, or more frequently if
there are indicators that goodwill might be impaired. The Directors have
reviewed goodwill for signs of impairment at 30 September 2025 and do not
consider it to be impaired. The following assumptions were used at year end
and are still considered appropriate.
Growth rates
The value in use is calculated from cash flow projections based on
the Group's forecasts for the next five years ending 31 March 2030. The
Group's latest financial forecasts, which cover a five-year period,
are reviewed by the Board. A terminal growth rate of 3.5% (March 2025: 3.5%)
for the Tatton CGU has been applied to year five cash flows. The terminal
growth rate is prudent, given the historical growth seen by the Group, and
does not exceed the long-term industry average growth rate. A terminal growth
rate of 0% has been applied to the Paradigm Mortgage Services LLP CGU that
reflects the outer year budget revenue.
Discount rates
The pre-tax discount rate applied to the cash flow forecasts is derived from
the average of the pre-tax weighted average cost of capital used by a large
number of comparable businesses, the data for which is externally available.
It is assumed that these businesses have a similar level of risk to the Group.
The pre-tax discount rate used to calculate value is 16.9% (March 2025: 16.9%)
and has been used for all CGUs.
Cash flow assumptions
The key assumptions used for the value in use calculations are those regarding
discount rate, growth rates and expected changes in margins. Forecast sales
growth rates are based on past experience, which has been adjusted for the
strategic direction and near-term investment priorities for each CGU. The
Tatton CGU has not budgeted for any market movements and has used an average
growth rate of net flows of 12%, which management believe is prudent given the
size of the market and historical growth. The Paradigm Mortgage Services LLP
CGU has an assumed 9% in year 1, decreasing to 2% growth by year 5.
From the assessment performed, no reasonably possible change in a key
assumption would cause the recoverable amount of either the Tatton CGU or the
Paradigm Mortgage Services LLP CGU to equal its carrying value.
12. Intangibles
Computer software (£'000) Client relationships (£'000) Brand Total
(£'000)
(£'000)
Cost
Balance at 1 April 2024 1,849 4,034 98 5,981
Additions 125 - - 125
Balance at 30 September 2024 1,974 4,034 98 6,106
Additions 312 - - 312
Balance at 31 March 2025 2,286 4,034 98 6,418
Additions 206 - - 206
Balance at 30 September 2025 2,492 4,034 98 6,624
Accumulated amortisation and impairment
Balance at 1 April 2024 (1,021) (1,249) (25) (2,295)
Charge for the period (95) (201) (5) (301)
Balance at 30 September 2024 (1,116) (1,450) (30) (2,596)
Charge for the period (121) (203) (5) (329)
Balance at 31 March 2025 (1,237) (1,653) (35) (2,925)
Charge for the period (131) (203) (5) (339)
Balance at 30 September 2025 (1,368) (1,856) (40) (3,264)
Carrying amount
At 1 April 2024 828 2,785 73 3,686
At 30 September 2024 858 2,584 68 3,510
At 31 March 2025 1,049 2,381 63 3,493
At 30 September 2025 1,124 2,178 58 3,360
All amortisation charges on intangible assets are included within
administrative expenses in the Consolidated Statement of Total Comprehensive
Income.
13. Property, plant and equipment
Computer Fixtures and fittings Right-of-use assets Total
(£'000)
(£'000)
(£'000)
and office equipment (£'000)
Cost
Balance at 1 April 2024 347 498 924 1,769
Additions 26 10 - 36
Balance at 30 September 2024 373 508 924 1,805
Additions 32 - 339 371
Disposals - - (302) (302)
Balance at 31 March 2025 405 508 961 1,874
Additions 35 103 - 138
Balance at 30 September 2025 440 611 961 2,012
Accumulated depreciation and impairment
Balance at 1 April 2024 (216) (471) (266) (953)
Charge for the period (44) (9) (99) (152)
Balance at 30 September 2024 (260) (480) (365) (1,105)
Charge for the period (42) (1) (96) (139)
Disposals - - 302 302
Balance at 31 March 2025 (302) (481) (159) (942)
Charge for the period (40) (7) (100) (147)
Balance at 30 September 2025 (342) (488) (259) (1,089)
Carrying amount
At 1 April 2024 131 27 658 816
At 30 September 2024 113 28 559 700
At 31 March 2025 103 27 802 932
At 30 September 2025 98 123 702 923
All depreciation charges are included within administrative expenses in the
Consolidated Statement of Total Comprehensive Income.
The Group leases buildings, motor vehicles and IT equipment. The Group has
applied the practical expedient for short-term leases and so has not
recognised IT equipment within right-of-use ("ROU") assets. The average lease
term is five years. The future lease payments relating to lease liabilities
are fixed.
Right-of-use assets
Unaudited Unaudited Audited
30-Sep 2025
30-Sep 2024
31-Mar 2025
(£'000)
(£'000)
(£'000)
Amounts recognised in profit and loss
Depreciation on right-of-use assets (100) (99) (195)
Interest expense on lease liabilities (37) (27) (66)
Short-term lease expense (43) (35) (67)
Low value leased asset expense - (1) -
(180) (162) (328)
At 30 September 2025, the Group is committed to £32,000 for short-term leases
(March 2025: £78,000).
The total cash outflow for all leases amounts to £188,000 (March 2025:
£283,000). The cash outflows for the principal portion of lease liabilities
and for the interest portion of lease liabilities is shown within financing
activities in the Consolidated Statement of Cash Flows. The cash outflows for
the payments of short-term leases are shown within operating activities in the
Consolidated Statement of Cash Flows.
14. Trade and other receivables
Unaudited Unaudited Audited
30-Sep 2025
30-Sep 2024
31-Mar 2025
(£'000)
(£'000)
(£'000)
Trade receivables 1,069 239 312
Accrued income 4,623 3,874 3,936
Prepayments 1,156 673 712
Other receivables 1,308 482 1,578
8,156 5,268 6,538
Trade and other receivables, excluding prepayments, are financial assets. The
carrying value of these financial assets are considered a fair approximation
of their fair value. Accrued income is made up of contract assets which are
balances due from customers that arise when the Group delivers the service.
Payment for services is not due from the customer until the services are
complete and therefore a contract asset is recognised over the period in which
the services are performed to represent the entity's right to consideration
for the services transferred to date. This usually relates to providing one
month of investment management service prior to receiving the cash from the
customer in the following month.
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses ("ECLs") for trade receivables and accrued income at an amount equal to
lifetime ECLs. In line with the Group's historical experience, and after
consideration of current credit exposures, the Group does not expect to incur
any credit losses and has not recognised any ECLs in the current year (March
2025: £nil).
Trade receivable amounts are all held in sterling.
15. Trade and other payables
Unaudited Unaudited Audited
30-Sep 2025
30-Sep 2024
31-Mar 2025
(£'000)
(£'000)
(£'000)
Trade payables 170 70 478
Amounts due to related parties 14 - 14
Accruals 6,272 4,675 7,163
Deferred income 74 111 122
Contingent consideration 444 926 420
Lease liabilities 722 569 848
Other payables 3,279 2,257 2,844
10,975 8,608 11,889
Less non-current portion:
Contingent consideration - (425) -
Lease liabilities (485) (512) (615)
Other payables (40) (45) (42)
Total non-current trade and other payables (525) (982) (657)
Total current trade and other payables 10,450 7,626 11,232
Trade payables, accruals, lease liabilities, contingent consideration
and other payables are considered financial liabilities. The Directors
consider that the carrying amount of trade payables approximates to their fair
value.
Within other payables, there is a loan of £15,000 (March 2025: £33,000)
that holds a fixed and floating charge over all present and future property
and undertakings of Fintegrate Financial Solutions Limited. Trade payable
amounts are all held in sterling.
16. Financial instruments
The Group's treasury activities are designed to provide suitable, flexible
funding arrangements to satisfy the Group's requirements. The Group uses
financial instruments comprising borrowings, cash and items such as trade
receivables and payables that arise directly from its operations. The main
risks arising from the Group's financial instruments are interest rate risks,
credit risks and liquidity risks. The Board reviews policies for managing
each of these risks and they have been fully disclosed in the FY25 Annual
Report and Accounts. The Group finances its operations through a combination
of cash resource and other borrowings.
Fair value estimation
IFRS 7 requires the disclosure of fair value measurements of financial
instruments by level of the following fair value measurement hierarchy:
· Quoted prices (unadjusted) in active markets for identical assets or
liabilities (level 1)
· Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices) (level 2)
· Inputs for the asset or liability that are not based on observable market
data (that is, unobservable inputs) (level 3)
All financial assets, except for financial investments, are held at amortised
cost and are classified as level 1. The carrying amount of these financial
assets at amortised cost approximate to their fair value. Financial
investments are categorised as financial assets at fair value through profit
or loss and are classified as level 1 and the fair value is determined
directly by reference to published prices in an active market.
Financial assets at fair value through profit or loss (level 1)
Unaudited Unaudited Audited
30-Sep 2025
30-Sep 2024
31-Mar 2025
(£'000)
(£'000)
(£'000)
Financial investments in regulated funds or model portfolios 1,246 1,132 1,133
All financial liabilities, except for contingent consideration, are
categorised as financial liabilities measured at amortised cost and are also
classified as level 1. The only financial liabilities measured subsequently at
fair value on level 3 fair value measurement represent contingent
consideration relating to a business combination.
Contingent consideration has been valued using a discounted cash flow method
that was used to capture the present value arising from the contingent
consideration. The unobservable inputs are:
· the risk-adjusted discount rate of 8.7%; and
· the probability-adjusted level of assets under management, which have a
range of £283,000,000 to £353,000,000.
Financial liabilities at fair value through profit or loss (level 3)
Contingent consideration £'000
Balance at 1 April 2024 903
Unwinding of discount rate 23
Balance at 30 September 2024 926
Contingent consideration paid (530)
Unwinding of discount rate 24
Balance at 31 March 2025 420
Unwinding of discount rate 24
Balance at 30 September 2025 444
The unwinding of the discount rate and the changes in fair value of contingent
consideration have been recognised in the Consolidated Statement of Total
Comprehensive Income.
17. Equity
Number
Authorised, called up and fully paid
At 1 April 2024 60,511,400
Issue of share capital on exercise of employee share options 37,480
At 30 September 2024 60,548,880
Issue of share capital on exercise of employee share options -
At 31 March 2025 60,548,880
Issue of share capital on exercise of employee share options 415,407
At 30 September 2025 60,964,287
18. Share-based payments
During the period, a number of share-based payment schemes and share options
schemes have been utilised by the Company.
18.1 Current schemes
(I) Tatton Asset Management plc EMI scheme ("TAM EMI scheme")
The options granted in 2022 vested and became exercisable in July 2025. There
have been 168,561 options exercised during the period from this scheme. The
remaining 684,044 options exercised relate to exercises in vested option
schemes from 2017, 2018, 2019, 2020 and 2021. The weighted average share price
at the date of exercise was £7.18. 23,129 options lapsed in the six months
to 30 September 2025 (year ending March 2025: none). A total of 2,508,077
options remain outstanding at 30 September 2025, 1,311,809 of which are
currently exercisable. No options were forfeited in the period (year ending
March 2025: 6,649).
The vesting conditions for the scheme are detailed in the Remuneration
Committee report on pages 68 to 72 of the 2025 Annual Report and Accounts.
The weighted average fair value of the options granted during the six months
to September 2025 was £6.92. Within the accounts of the Company, the fair
value at grant date is estimated using the appropriate models, including both
the Black-Scholes and Monte Carlo modelling methodologies. Share price
volatility has been estimated using the historical share price volatility of
the Company, the expected volatility of the Company's share price over the
life of the options and the average volatility applying to a comparable
group of listed companies. Key valuation assumptions and the costs recognised
in the accounts are explained in notes 18.2 and 18.3 respectively.
Number share options granted Weighted average price
(number)
(£)
Outstanding at 1 April 2024 2,569,630 0.64
Granted during the period 61,964 -
Forfeited during the period (5,649) -
Exercised during the period (117,084) -
Outstanding at 30 September 2024 2,508,861 0.66
Exercisable at 30 September 2024 2,012,966 0.82
Outstanding at 1 October 2024 2,508,861 0.66
Granted during the period 389,382 -
Forfeited during the period (1,000) -
Exercised during the period (74,942) 0.59
Outstanding at 31 March 2025 2,822,301 0.54
Exercisable at 31 March 2025 1,941,486 0.79
Outstanding at 1 April 2025 2,822,301 0.54
Granted during the period 561,510 -
Forfeited during the period - -
Lapsed during the period (23,129) -
Exercised during the period (852,605) 1.18
Outstanding at 30 September 2025 2,508,077 0.32
Exercisable at 30 September 2025 1,311,809 0.62
(II) Tatton Asset Management plc Sharesave scheme ("TAM Sharesave scheme")
In July 2020, August 2021, August 2022, August 2023, August 2024 and August
2025, the Group launched all-employee Sharesave schemes for options over
shares in Tatton Asset Management plc, with the schemes in 2022, 2023, and
2024 being administered by Link Group. Employees are able to save between £10
and £500 per month over a three-year life of each scheme, at which point they
each have the option to either acquire shares in the Company or receive the
cash saved.
The 2022 TAM Sharesave scheme vested in August 2025 and 39,525 share options
vested, with 37,041 being exercised in the period to 30 September 2025, with
an exercise price of £3.26. Over the life of the 2023 TAM Sharesave scheme,
it is estimated that, based on current savings rates, 85,569 share options
will be exercisable at an exercise price of £3.89. Over the life of the 2024
TAM Sharesave scheme, it is estimated that, based on current savings rates,
30,946 share options will be exercisable at an exercise price of £5.62. The
weighted average contractual life for share options outstanding at the end of
the period was 1.47 years (March 2025: 1.54 years; September 2024: 1.51
years).
The weighted average fair value of the options granted during the year was
£4.11. Within the accounts of the Company, the fair value at grant date is
estimated using the Black-Scholes methodology for 100% of the options. Share
price volatility has been estimated using the historical share price
volatility of the Company, the expected volatility of the Company's share
price over the life of the options and the average volatility applying to a
comparable group of listed companies. Key valuation assumptions and the costs
recognised in the accounts are explained in notes 18.2 and 18.3 respectively.
Number share options Weighted average price
granted
(£)
(number)
Outstanding at 1 April 2024 69,977 3.53
Granted during the period 23,233 3.63
Forfeited during the period (1,019) 3.59
Exercised during the period (24,480) 3.60
Outstanding at 30 September 2024 67,711 3.54
Exercisable at 30 September 2024 13,000 3.60
Outstanding at 1 October 2024 67,711 3.54
Granted during the period 34,139 3.86
Forfeited during the period (1,691) 3.75
Exercised during the period (13,000) 3.60
Outstanding at 31 March 2025 87,159 3.71
Exercisable at 31 March 2025 - -
Outstanding at 1 April 2025 87,159 3.71
Granted during the period 24,808 4.11
Forfeited during the period - -
Exercised during the period (37,041) 3.26
Outstanding at 30 September 2025 74,926 4.09
Exercisable at 30 September 2025 2,484 3.26
18.2 Valuation assumptions
Assumptions used in the option valuation models to determine the fair value of
options at the date of grant were as follows:
EMI schemes Sharesave schemes
2025 2024 Grant 2 2024 Grant 1 2023 2022 2024 2023 2022
Share price at grant (£) 6.92 6.64 7.04 4.74 4.03 7.14 4.91 4.25
Exercise price (£) - - - - - 5.62 3.89 3.26
Expected volatility (%) 33.99 33.93 34.49 35.24 34.05 34.36 35.13 34.05
Expected life (years) 3.00 2.47 3.00 3.00 3.00 3.00 3.00 3.00
Risk-free rate (%) 3.86 3.96 3.98 4.64 1.71 3.81 4.74 1.71
Expected dividend yield (%) 2.75 2.41 2.27 3.06 3.11 2.24 2.95 3.11
18.3 IFRS 2 share-based option costs
Unaudited six months ended Unaudited six months ended Audited year ended
30-Sep 2025
30-Sep 2024
31-Mar 2025
(£'000)
(£'000)
(£'000)
TAM EMI scheme 1,523 804 1,335
TAM Sharesave scheme 39 39 62
Fintegrate option scheme - - 106
1,562 843 1,503
The Consolidated Statement of Cash Flows shows an adjustment to net cash from
operating activities relating to share-based payments of £919,000 (March
2025: £1,413,000; September 2024: £818,000). This is a charge in the year of
£1,562,000 (March 2025: £1,503,000; September 2024: £843,000) adjusted for
cash paid relating to national insurance contributions on the exercise of
share options of £643,000 (March 2025: £90,000; September 2024: £25,000).
Of the charge of £1,562,000, £1,069,000 is recognised through equity with
the remaining £493,000 relating to the cost of national insurance
contributions which are not accounted for through equity.
19. Related party transactions
Ultimate controlling party
The Directors consider there to be no ultimate controlling party.
Relationships
Balances and transactions between the Parent Company and its subsidiaries,
which are related parties, have been eliminated on consolidation and are not
disclosed in this note. The Group has trading relationships with the following
entities in which Paul Hogarth, a Director, has a beneficial interest:
Entity Nature of transactions
Suffolk Life Pensions Limited The Group pays lease rental payments on an office building held in a pension
fund by Paul Hogarth.
30 September 2025 30 September 2024 31 March 2025
Terms and conditions 2025 Value of (cost) Balance (payable) 2024 Value of (cost) Balance (payable) 2025 Value of (cost) Balance (payable)
(£'000)
(£'000)
(£'000)
(£'000)
(£'000)
(£'000)
Suffolk Life Pensions Limited Payable in advance (41) (14) - (15) (61) (14)
20. Post balance sheet events
There have been no post balance sheet events, apart from the item disclosed in
note 21.
21. Capital commitments
On 12 August 2025, Tatton Asset Management plc entered into a cash commitment
to invest up to £10,000,000 in Carlos Topco Limited, which is available to be
drawn down over a five-year period. It is expected that c.£3,800,000 will be
invested in December 2025. The Board has reviewed the Group's cash position,
regulatory liquidity and capital requirements, and is satisfied that the Group
will retain its strong cash position and hold regulatory capital resources and
liquidity in excess of its requirements. This commitment is not shown in the
Consolidated Statement of Financial Position at the period end.
22. Contingent liabilities
At 30 September 2025, the Directors confirmed there were no contingent
liabilities (March 2025 and September 2024: none).
23. Reconciliation of operating profit to net cash inflow from operating activities
Note Unaudited six months ended Unaudited six months ended Audited year ended 31-Mar 2025
30-Sep 2025 (£'000)
30-Sep 2024
(£'000)
(£'000)
Profit for the period 8,630 7,720 16,002
Adjustments:
Corporation tax expense 7 3,044 2,382 5,594
Finance income (560) (485) (1,033)
Finance costs 74 23 123
Depreciation of property, plant and equipment 13 147 152 291
Amortisation of intangible assets 12 443 301 630
Share-based payment expense 18 919 818 1,413
Post-tax share of profits/(losses) of joint venture (35) 81 148
Fair value gains on financial assets (112) (26) (27)
Changes in:
Trade and other receivables (1,620) 74 (1,241)
Trade and other payables (660) (807) 2,741
Cash generated from operations 10,270 10,233 24,641
24. Alternative performance measures
The Group has identified and defined certain measures that it uses to
understand and manage its performance. The measures are not defined under IFRS
and are not considered to be a substitute for or superior to IFRS measures,
but management believe that these Alternative Performance Measures ("APMs")
provide stakeholders with additional helpful information and enable an
alternative comparison of performance over time. The APMs should not be viewed
in isolation, but as supplementary information. APMs may not be comparable
with similarly titled measures presented by other companies. The APMs are used
by the Board and management to analyse the business and financial performance,
track the Group's progress, and help develop long-term strategic plans. Some
APMs, where noted in the table, are used as key management incentive metrics.
The APMs provide additional information to investors and other external
shareholders, to provide additional understanding of the Group's results of
operations as supplemental measures of performance.
APM Closest equivalent measure Reconciling items to their statutory measure Definition and purpose
Adjusted operating profit Operating profit Items in note (a) below The reconciliation between operating profit and adjusted operating profit can
be seen on the face of the Consolidated Statement of Total Comprehensive
Income. See note 5 for the value of the adjusting items. This is a key
management incentive metric.
Adjusted operating profit margin Operating profit margin Items in note (a) below Adjusted operating profit divided by revenue to report the margin delivered.
Progression in the adjusted operating margin is an indicator of the Group's
operating efficiency. See note 5 for the value of the adjusting items.
Cash generated from operations before exceptional items Cash generated from operations Cash flows from exceptional items Cash generated from operations is adjusted to exclude cash flows from
exceptional items. The reconciliation between cash generated from operations
and cash generated from operations before exceptional items can be seen on the
Statement of Cash Flows, when relevant. This is a measure of the cash
generation and working capital efficiency of the Group's operations and is a
key management performance measure.
Adjusted earnings per share - basic Earnings per share - basic Items in note (b) below Profit after tax attributable to shareholders of the Company is adjusted to
exclude separately disclosed items, as detailed in note 8, and is divided by
the same denominator as basic EPS; this being the weighted average number of
ordinary shares in issue. Adjusted EPS - basic is presented to reflect the
impact of the separately disclosed items included in adjusted operating
profit.
Adjusted earnings per share - fully diluted Earnings per share - diluted Items in note (b) below Profit after tax is adjusted to exclude separately disclosed items, as
detailed in note 8, and is divided by the total number of dilutive shares,
assuming that all contingently issuable shares will fully vest. The
reconciliation and calculation of Adjusted EPS - diluted is shown in note 8.
Adjusted EPS - fully diluted is presented to reflect the impact of the
separately disclosed items included in adjusted operating profit and to
include all shares that are contingently issuable, assuming that share options
fully vest. This is a key management incentive metric.
Tatton - assets under management ("AUM") and net inflows None Not applicable AUM is representative of the customer assets and is a measure of the value of
the customer base. Movements in this base are an indication of performance in
the year and growth of the business to generate revenue going forward. Net
inflows measure the net of inflows and outflows of customer assets in the
year. Net inflows are a key management incentive metric.
Tatton - assets under influence ("AUI") None Not applicable AUI is representative of the customer assets that are not directly managed by
Tatton but over which we hold influence, due to our shareholding in the
company in which they are managed, and is a measure of the value of the
customer base. Movements in this base are an indication of our participation
in the joint venture and its growth, in order to generate Tatton's share of
profits going forward.
Tatton firms None Not applicable Alternative growth measure to revenue; provides an operational view of growth
in the Tatton division.
Paradigm - Consulting members, Mortgages lending and member firms None Not applicable Alternative growth measure to revenue; provides an operational view of growth
in the Paradigm division, which is supported by two main service lines:
Consulting and Mortgages.
(a) Reconciling items include: Exceptional items, share-based payments,
changes in the fair value of contingent consideration, amortisation of
acquisition-related intangibles, and operating loss relating to
non-controlling interest.
(b) Reconciling items include: Exceptional items, share-based payments,
changes in the fair value of contingent consideration, amortisation of
acquisition-related items, unwinding of discount on contingent consideration,
and the tax thereon.
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Copyright 2019 Regulatory News Service, all rights reservedRecent news on Tatton Asset Management
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