Wealth manager maintains impressive net inflow record in solid first half

Paul Hogarth, founder and chief executive of Tatton Asset Management

Tatton Asset Management, the Wilmslow-based investment management and IFA support services group, has maintained its impressive average of £150m net inflows per month over the past 18 months, it revealed in its unaudited results for the six months to September 30, 2023, today.

Group revenue increased 9.9% to £17.506m, and its pre-tax profits rose from £6.624m last year to £7.693m.

It boasts a strong financial liquidity position, with net cash of £24.222m, compared with £26.494m in March this year, and a strong balance sheet with net assets £40.336m.

The group has increased the interim dividend by 77.8% to 8p per share, up from 4.5p last year.

Assets Under Management/Influence (AUM/I) increased 19.8% to £14.784bn, while organic net inflows were £0.910bn (Sep 2022: £0.907bn), an annualised increase of 13.1% of opening AUM/I with an average run rate of £152m per month.

Tatton’s IFA firms increased by 5.2% to 914 (Mar 2023: 869) and the number of accounts increased 7.1% to 114,650 (Mar 2023: 107,010).

Paradigm Mortgages completions reduced by 5.5% to £6.9bn (Sep 2022: £7.3bn), while Paradigm Mortgages member firms increased to 1,798 members (Mar 2023: 1,751 members). Paradigm Consulting members increased to 437 (Mar 2023: 431).

Chief executive, Paul Hogarth, said: “The group has delivered a solid first half result, successfully meeting our strategic objectives and maintaining strong organic growth of revenue and profits.

“While volatile markets continued to be a challenge, our Assets Under Management/Influence still reached £14.8bn and we expect to exceed our £15bn ‘Roadmap to Growth’ strategy by March 2024.”

He added: “I am delighted with the performance of Tatton, which has continued to perform strongly by consistently delivering an average of £150m net inflows per month over the last 18 months. This level of net inflow has continued into the second half, reinforcing the attractiveness of the MPS proposition and highlighting our ability to maintain consistent performance even in difficult macroeconomic conditions.

“Paradigm has also delivered a resilient performance in the period, despite a subdued housing market which has led to a changing mix of mortgage lending. We anticipate that this trend will continue throughout the second half of the year, with expectations for Paradigm to maintain its resilient performance.

“We look forward to making further progress over the rest of the year, while remaining acutely aware of the continuing macroeconomic turbulence and market volatility. The board remains confident in the future prospects of the group.”

Click here to sign up to receive our new South West business news...