Tatton Asset Management plc (LON:TAM), the investment management and IFA support services group, has announced its audited final results for the year ended 31 March 2021.
● Group revenue increased 9.3% to £23.4m (Mar 2020: £21.4m)
● Adjusted operating profit1 up 25.6% to £11.4m (Mar 2020: £9.1m)
● Adjusted operating profit1 margin 48.8% (Mar 2020: 42.5%)
● Adjusted fully diluted EPS2 increased 22.8% to 14.74p (Mar 2020: 12.00p)
● Profit before tax £7.3m (2020: £10.3m)
● Final dividend up 17.2% to 7.5p (Mar 2020: 6.4p), full year dividend of 11.0p (Mar 2020: 9.6p)
● Strong financial liquidity position, with net cash of £16.9m
● New banking facility, giving access to up to £30 million of funds
1 Operating profit before exceptional items, share-based payment charges and amortisation of acquired intangibles
2 Adjusted fully diluted earnings per share is calculated by dividing the adjusted operating profit less cash interest and less tax on operating activities by the weighted average number of ordinary shares in issue during the year plus potentially dilutive ordinary shares.
● Assets Under Management (AUM) increased 35.2% to £9.0 billion (31 Mar 2020: £6.7 billion), an increase of £2.3 billion for the 12 month period. Current AUM at 15 June 2021 c.£9.5bn
● Organic net inflows were £755 million, an increase of 11.4% of AUM with H2 £427m, 30% increase on H1. Current average run rate of £100m per month, back to pre-COVID levels
● Tatton increased the number of IFA firms by 12.3% to 668 (31 Mar 2020: 595) and the number of accounts increased 9.6% to 72,450 (31 Mar 2020: 66,100)
● Tatton’s Ethical Portfolios increased 141% to £441m (2020: £121m)
● Demonstrating the power of strategic partnering, Tatton’s long-term business partnership with Tenet continues to develop well with 104 IFA firms (31 Mar 2020: 81 IFA firms) and AUM reaching £541m (31 Mar 2020: £226m)
● Paradigm Mortgages increased its Gross Lending by 15.0% to £11.34bn (2020: £9.86bn), and member firms by 4.4% to 1,612 members (31 March 2020: 1,544 members)
● Paradigm Consulting increased its members by 3.3% to 407 (31 Mar 2020: 394)
Paul Hogarth, Tatton Asset Management Chief Executive Officer, commented:
“This has been a significant year for the Group, a year that has seen unprecedented change and one in which I am pleased to report we have continued to grow and prosper. We are proud to have played a very positive role in supporting all our clients in what has been a very tough environment, but one which we have navigated successfully.
Tatton has a long track record of putting the client first and our success has been built on the core values of putting the IFA at the heart of our business. This year this philosophy has been critical and our ability to adapt to their changing needs has paid dividends.
I am pleased to report the Group has now reached a milestone of £9.0bn of AUM, an increase of over £5bn in under four years from the point the business listed in July 2017. Impressively, the vast majority of this £5bn growth has been achieved organically.
As we enter the new financial year we do so with a degree of optimism. The industry is tuned into the new environment and while we look to return to more face-to-face interaction, there is no doubt we will continue to utilise the alternative solutions of online interaction and home working and essentially adopt a hybrid model to best leverage the use of time and resources. At the time of writing, activity and IFA engagement have been stable and this has been reflected in the new net inflows in the final quarter of the financial year under review. This momentum has also carried forward into the start of the new financial year.
Our ambition remains focused on continuing to deliver organic growth in AUM, supported by acquisition opportunities and strategic partnerships. We remain confident the Group will continue to make progress and we look forward to reporting on this as the year unfolds.”