Newly-listed firm on high despite £1.6m IPO costs
Costs of £1.6m incurred for its summer-time IPO have put dent in the maiden results of newly-listed discretionary fund manager Tatton Asset Management.
The Wilmslow, Cheshire company went public in July with an £87.2m float and in the six months to September 30 it enjoyed a 15% increase in assets under management to £4.44bn.
Group revenue went up 31% to £7.3m (H1 2016: £5.6m). However, reported pre-tax profit was down to £0.54m (H1 2016: £1.86) as a result of the costs arising from the delivery of the IPO.
It reported a strong financial position, with net cash of £10.5m (1H16: £0.1 million) and regulatory capital resources in significant surplus to requirements.
The croup has three operating subsidiaries – Tatton Capital Limited, Paradigm Partners Ltd and Paradigm Mortgage Services.
Chairman Roger Cornick said: “All three divisions have delivered growth in revenues, as a result of which Adjusted EBIT, at £3.1m, has increased by 56% in comparison to the first half of the previous year.”
Chief executive Paul Hogarth added: “Our IPO in July 2017 has been very well received by client firms supported by the group.
“A key metric for our growth is discretionary funds under management, which I am delighted to report has risen by 33% over the last 12 months to £4.44 bn.
“We are seeing unprecedented demand for a low-cost DFM (discretionary fund management) service to the mass affluent market place served by the IFA sector, which the Group is ideally placed to capitalise on.”
“Our unparalleled offer is challenging the existing off-platform, traditional incumbents, by providing the mass-affluent with the kind of investment portfolio management usually the preserve of the very wealthy. This is a game changer and has set us on a firm path of growth.”
