TAM Tatton Asset Management Plc

TIDMTAM

RNS Number : 4923W

Tatton Asset Management PLC

18 April 2023

18 April 2023

Tatton Asset Management PLC

("TAM," the "Group" or the "Company")

TRADING UPDATE AND NOTICE OF FINAL RESULTS

Tatton Asset Management plc (AIM: TAM), the on-platform discretionary fund management (DFM) and IFA support services Group, today announces the following unaudited trading update for the year ended 31 March 2023 ("FY23", the "Period" or the "Year"), which shows strong growth in line with the Board's expectations. The Group's audited Final Results are scheduled to be released on 13 June 2023.

TRADING UPDATE

Record organic net inflows of 15.8% in a challenging environment have contributed to a strong performance in FY23 and the Board is confident that the financial results for the Year will be in line with consensus market expectations.

Highlights

Assets under management ("AUM/AUI") increased by 22.3% in the Year to GBP13.871 billion (2022: GBP11.341 billion).

Tatton Investment Management delivered another strong year of growth with the number of active firms increasing 16.5% to 869 (2022: 746), supporting record organic net inflows for the year of GBP1.794 billion (2022: GBP1.277 billion), an increase of 15.8% of the AUM at the start of the year. Net inflows in the second half of the year were GBP0.887 billion, an average of GBP148 million per month maintaining the strong performance delivered in the first half of the year of GBP0.907 billion. These record inflows of GBP1.794 billion represent a 40.5% increase on the prior year net inflows. AUM/AUI was further increased through the acquisition of 50% of the share capital of 8AM Global Limited in August 2022, contributing assets under influence ("AUI") of GBP1.136 billion, which is an increase from the GBP1.0 billion at acquisition. Market performance over the year reduced AUM/AUI by 3.5% or GBP0.400 billion.

 
                                         GBPbn 
-----------------------------------   -------- 
 Opening AUM 1 April 2022               11.341 
 Organic net flows                       1.794 
 Market and investment performance     (0.400) 
------------------------------------  -------- 
 Total AUM 31 March 2023                12.735 
 Acquisition 50% 8AM Global (AUI)        1.136 
------------------------------------  -------- 
 Total AUM / AUI 31 March 2023          13.871 
------------------------------------  -------- 
 
 

Paradigm has performed well with Consulting member firms increasing to 431 (2022: 421) and Mortgage firms increasing to 1,751 (2022: 1,674). Paradigm Mortgages involvement in completions in the second half of the year remained strong at GBP7.2bn, despite rising interest rates and continued global uncertainty. This resulted in a record year for completions which totalled GBP14.5 billion (2022: GBP13.2 billion), a 9.8% increase on the prior year.

The Group ended the year with cash on the balance sheet of GBP26.5m.

Paul Hogarth, Chief Executive Officer, commented:

"I am delighted with the performance this year as the Group delivered another year of strong growth in what has been a difficult and volatile market environment for most asset managers. Against this backdrop we have increased our AUM/AUI over the year by 22.3% to GBP13.9 billion, close to our GBP15 billion target by the end of FY24 and with still a year to go.

"This year we are celebrating the tenth anniversary of the creation of Tatton and during that period we have been at the forefront of the MPS market and continued to champion the IFA. We have consistently grown, adding new firms and AUM annually, resulting in this year being our strongest ever and I now believe the MPS market has reached a point where it has truly come of age. In addition to the GBP1.1bn of AUI acquired with 8AM in August, Tatton Investment Management delivered record organic net inflows of GBP1.8 billion a 40.5% increase on the prior year and a 71.5% increase over the average of the last five years (five-year average: GBP1.046 billion). It was even more pleasing that we carried the first half momentum into the second half of the year, ensuring we maintained consistent flows throughout the year as a whole. The market drivers remain unchanged and we will continue to invest to strengthen the team in order to take advantage of the sizeable opportunity for further organic growth in the years ahead.

"Paradigm has also delivered a good year with involvement in record mortgage completions of GBP14.5 billion despite a much more difficult market in the second half of the year.

"We look forward with confidence as we make further progress and continue to deliver against our strategic objectives."

For further information please contact:

 
Tatton Asset Management plc 
 Paul Hogarth (Chief Executive Officer) 
 Paul Edwards (Chief Financial Officer) 
 Lothar Mentel (Chief Investment Officer)                 +44 (0) 161 486 3441 
 
  Zeus - Nominated Adviser and Broker 
  Martin Green/Dan Bate (Investment Banking)              +44 (0) 20 3829 5000 
 
  Singer Capital Markets - Joint Broker 
  Peter Steel, Oliver Platts (Investment Banking)         +44 (0) 20 7496 3000 
 
Belvedere Communications - Financial PR 
 John West / Llew Angus (media)                            +44 (0) 7407 023147 
 Cat Valentine / Keeley Clarke (investors)                 +44 (0) 7715 769078 
                                                      tattonpr@belvederepr.com 
 
  Trade Media Enquiries 
  Roddi Vaughan Thomas (Head of Communications)          + 44 (0) 20 7139 1452 
 

For more information, please visit: www.tattonassetmanagement.com

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April 18, 2023 02:00 ET (06:00 GMT)

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