Tatton Asset Management excels, and vows to increase market share further
Revenues, profits and dividends have risen at Tatton Asset Management, the Wilmslow-based investment management and IFA support services group.
Publishing its annual results to March 31, 2023, today, it revealed a 10% jump in turnover of £32.327m, pre-tax profits of £15.996m, up from £11.275m the previous year, and a 17.6% boost to the final dividend for shareholders, of 10p per share, taking the total dividend to 14.5p, up from 12.5p in 2022.
The business also revealed it has a strong financial liquidity position, with net cash of £26.494m (2022: £21.710m), and a strong balance sheet – net assets increased 34.6% to £41.781m (2022: £31.044m).
Assets under management (AUM) increased 12.3% to £12.735bn (2022: £11.341bn), and the current AUM at June 2023 was circa £13.204bn (AUM/AUI: c.£14.325bn)
Organic net inflows were £1.794bn (2022: £1.277bn), an increase of 15.8% of opening AUM with an average run rate of £150m per month.
Tatton’s non-managed portfolio services (MPS) propositions now account for c.£1.2bn of AUM, while its IFA firms increased by 16.5% to 869 (2022: 746) and the number of accounts increased 19.2% to 107,010 (2022: 89,780).
Paradigm Mortgages completions were up by 10.3% to £14.50bn (2022: £13.15bn). Paradigm Mortgages member firms increased to 1,751 members (2022: 1,674 members). Paradigm Consulting increased its members to 431 (2022: 421).
Chairman, Roger Cornick, believes the company can continue its momentum and increase market share going forward. He said: “While the general economic outlook for the year ahead looks no better than the period under review, both nationally and internationally, there are factors that promote some optimism.
“Momentum is a very useful ally, and we have confidence in being able to increase our market share in what is widely recognised as a growing sector of the asset management world.
“By remaining focused on our stated strategy over the past year, we have been able to grow the business significantly, and sustaining this focus, while remaining alert to other opportunities, should enable us to report further progress at the end of the 12 month trading period in front of us.”
Chief executive, Paul Hogarth, said: “This is the 10th anniversary year for Tatton and I am delighted with the progress we have continued to make throughout that decade. It is fitting that in this 10th anniversary year, we have raised the bar further, delivering our best performance to date with record net inflows of £1.8bn, AUM/AUI of £13.9bn and involvement in lending through Paradigm of £14.5bn.
“While it has been a difficult and volatile year for many asset managers and businesses, we have continued to execute our strategy and build on our strengths, leveraging our wide distribution capability, deep industry expertise, robust long term investment performance and talented team across the whole business.”
He added: “As we look forward, we are mindful that we remain in uncertain times, both from an economic and geo-political standpoint. While not unaffected by these conditions, despite this uncertainty we are optimistic about the group’s prospects.
“Assets on platform continue to grow and our MPS proposition is becoming increasingly attractive to IFAs and their clients. With our long term consistent investment track record rewarding and enhancing client outcomes, wide distribution footprint and competitive market position we are well placed to capitalise on these conditions and achieve our goal of delivering long term, sustainable growth for all our stakeholders.”
