Investment firm achieves impressive annual performance despite ‘uncertain times’

Paul Hogarth

Wilmslow-based investment management and IFA support services group, Tatton Asset Management, announced a strong annual performance, in line with expectations, it said today.

In the year to March 31, 2022, the business recorded a 25.7% increase in revenues, which reached £29.356m.

The pre-tax profit was £11.275m, up from £7.303m the previous year. The board has also recommended a full year dividend of 12.5p per share, up from 11p last year, while it said the business has a strong financial liquidity position, with net cash of £21.710m, compared with £16.934m in 2021, and a strong balance sheet, after net assets increased 27.3% to £31.044m, against £24.446m in the prior year.

Assets Under Management (AUM) increased £2.35bn or 26.2% to £11.341bn and the current AUM figure, at June 2022, was approximately £11.183bn.

Organic net inflows were £1.277bn (2021: £0.755bn), an increase of 14.2% of opening AUM with an average run rate of £106m per month.

Tatton Asset Management executed the acquisition of £650m Verbatim funds in September 2021 and a five-year strategic distribution partnership with Fintel, providing access to 3,800 firms and more than 6,000 users.

The recent acquisition of 8AM Global, subject to regulatory approval, adds a further £0.8bn of assets.

Tatton’s Ethical portfolios increased 84.1% to £812m AUM (2021: £441m), and its non-Managed Portfolio Services (MPS) propositions now account for circa £1.2bn of AUM.

Its IFA firms increased by 11.7% to 746 (2021: 668) and the number of accounts increased 23.9% to 89,780 (2021: 72,450).

Paradigm Mortgages completions were up by 16.0% to £13.15bn (2021: £11.34bn), while Paradigm Mortgages member firms increased by 3.8% to 1,674 members (2021: 1,612). Paradigm Consulting increased its members by 3.4% to 421 (2021: 407).

Tatton chief executive, Paul Hogarth, said: “I am delighted to report on yet another successful year for the group, as we continue to execute our stated strategy and deliver strong organic and acquisitive growth for FY22.

“The geo-political and financial market volatility of the past year has highlighted that both our divisions are resilient and robust businesses with an attractive outlook as they continue to benefit from a consistent and sustainable business platform.

“Client outcomes remain, and will always be, our key focus. This was the ‘raison d’être’ for the creation of Tatton back in 2013 and remains at the heart of our DNA as a business.”

He added: “Since inception, we have built a strong track record of delivering value and consistent investment returns at a market leading cost, through the IFA community and exclusively on platform. We continue to go from strength to strength, as we build on the strong organic net inflows, which have been further enhanced by the recent acquisitions. Paradigm is also well positioned to make further progress and support group ambitions.

“As we look forward to FY23, our strategic emphasis will be to consolidate and build on the gains we have made to date whilst further developing the business to drive growth and long term value creation. We continue to focus on and take a disciplined approach to executing our strategy and I remain excited about the opportunities that exist for the group.

“While we remain conscious that these are uncertain times, both from an economic and geo-political standpoint, we are well positioned to make further progress in the year ahead and better equipped than most to deal with any prevailing market headwinds.”

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