Investment firm hits record assets under management on ‘solid’ performance
Tatton Asset Management said it has delivered a “solid” set of interim results, including record assets under management (AUM) of £10.8bn.
The Wilmslow-based investment management and IFA support services group revealed figures for the six months to September 30, that showed revenues of £13.847m, up from £10.956m. The £4.787m pre-tax profit was an improvement on last year’s £3.074m figure.
The board has recommended an interim dividend of 4.0p per share, an increase of 14.3% on the previous period interim dividend.
Tatton remains debt free with closing net cash at the end of the first half period of £14.7m, up from £13.3m in 2020.
AUM increased £1.8bn or 20% to £10.8bn, compared with £9bn at March 2021. Current AUM, at November 12, was approximately £11.2bn.
During the period the firm completed the acquisition of £650m Verbatim funds and a five-year strategic distribution partnership with Fintel, providing access to 3,800 firms and more than 6,000 users.
Tatton’s non-MPS propositions account for more than £1.2bn of AUM as at the end of the interim period. Its IFA firms increased by 12.7% to 703 (Sep 2020: 624) and the number of accounts increased 19.1% to 81,600 (Sep 2020: 68,500).
It said Tenet continues to develop well, with AUM reaching £740m, up from £541m in March.
Paradigm mortgage completions were up by 31.6% to £6.6bn (Sep 2020: £5.0bn) and Paradigm Mortgages member firms increased by 3.5% to 1,646 members (Sep 2020: 1,591 members). Paradigm Consulting increased its members by 3.5% to 418 (Sep 2020: 404).
The group said trading momentum has continued since the last market update and post-period end and, as a result, Tatton now anticipates that trading for the current financial year will be ahead of the board’s previous expectations.
Chief executive, Paul Hogarth, said: “I am delighted to report that the group has delivered a solid first half result, delivering against our strategic objectives and maintaining strong growth across all our key metrics of AUM, revenue and profits.
“During the period, Tatton exceeded the milestone of £10bn AUM from pure organic growth, while also expanding our distribution footprint by entering into new long term strategic partnerships and we were thrilled to have reached £10.8bn at the end of September 2021.
“Paradigm also delivered a record level of mortgage completions of £6.6bn in the six month period. Trading momentum has continued since the last market update and post-period end and, as a result, we now anticipate that trading for the current financial year will be ahead of the board’s previous expectations.”
He added: “The IFA (independent financial advisor) remains at the heart of our business, and our breadth of services, propositions and engagement ensures we maintain existing client relationships while enhancing our ability to attract new firms.
“Accordingly, as we look forward, we are confident we will continue to make progress and take advantage of the opportunities ahead.”