Tatton Asset Management confident after year of growth

18th Jun 2024 09:03

(Sharecast News) - Tatton Asset Management reported growth across key financial metrics in its final results on Tuesday, with group revenue rising 13.9% to £36.81m.

The AIM-traded firm said its adjusted operating profit increased 12.9% for the 12 months ended 31 March to £18.51m, reflecting a strong profit margin of 50.3%.

Profit before tax also saw an increase, reaching £16.75m, compared to £15.99m in 2023.

Adjusted fully diluted earnings per share climbed 11.2% to 22.91p, as the company declared a final dividend of 8p, culminating in a total dividend for the year of 16.0p, a 10.3% increase year-on-year.

TAM said it maintained a robust financial liquidity position, with net cash of £24.8m and net assets rising to £43.3m.

Operationally, TAM achieved a 26.9% increase in assets under management and influence, reaching £17.6bn by the end of the 2024 financial year.

That growth surpassed the company's ambitious three-year 'Roadmap to Growth' strategy target of £15bn, with the current total as of June standing at £18.56bn.

Organic net inflows were reported at £2.3bn, up 18.1% on the year, with an average monthly run rate of £192m.

The number of Tatton's independent financial adviser (IFA) firms increased 12.2% to 975, while client accounts grew 17.9% to 126,150.

Paradigm Mortgages, part of the group, saw a 9.7% reduction in mortgage completions to £13.1bn, still outperforming the wider market which experienced a 29% decline.

The number of mortgage member firms increased 9.4% to 1,916.

Looking ahead, TAM set a new growth target of £30bn in assets under management and influence by the end of the 2029 financial year.

The company reported net inflows of £0.9bn in the first quarter of the new year, mirroring the inflows of the entire first half of 2024.

"We are very optimistic about our growth trajectory and the opportunities that lie ahead," said chief executive officer Paul Hogarth.

"Our goal is to exceed our £30bn assets under management and influence target, enhance our market position, and continue to support and champion the IFA community."

Hogarth said the firm's focus would remain on maintaining organic growth, improving operational efficiency, and fulfilling its commitments to stakeholders.

"We are confident that our strategic approach, coupled with our dedication to excellence, will lead to continued success and solidify our position as a leading asset management firm in the UK."

At 0844 BST, shares in Tatton Asset Management were up 2% at 612p.

Reporting by Josh White for Sharecast.com.