Tatton Asset Management has achieved organic net inflows of £1.8bn in its latest set of half yearly results – a 101% increase compared to the same time frame last year. This marks a 22.1% annualised increase since opening AUM at the start of the period with an average run rate of £305m per month. Year-to-date net inflows stood at £2.2bn to November this year.
Assets under management and influence increased by 34.9% compared to the same period last year, from £14.8bn to £19.9bn. Over the six months, this meant AUM grew by 26.6%. AUM as at November stands at £20.6bn.
Tatton’s IFA firms increased in number from 975 to 1,038 over the six-month period, marking a 6.5% rise. The number of accounts being managed increased by 10.4% on an annualised basis, from 126,150 at the end of March, to 139,330 at the end of September.
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In terms of the underlying business, group revenue rose by 23.7% to £21.7m, compared to £17.5m over the same time frame last year – a 23.7% increase.
Tatton’s adjusted operating profit was up 22.8% to £10.9m while its profit margin stood at 50.3%. Compared to the same time frame last year, this marked a 22.8% in terms of profit, but a 40 basis-point decrease in terms of margin.
Net cash on the company’s balance sheet grew by 8.4% over the six-month period, from £24.8m to £26.9m.
Paul Hogarth (pictured), chief executive officer of Tatton Asset Management, said: “Our record organic net inflows driven by our strong proposition, consistent investment performance and market leading service have underpinned our performance in this period. We continue to deliver against our strategic objectives, positioning the business for long-term growth on an organic basis and we remain well positioned to execute our New Roadmap to Growth target of £30bn AUM/I by March 2029.
“Looking to the future, the IFA sector remains in good health and we will continue to seek further opportunities to support the IFA community through creating a more holistic approach to our long-term relationships. More widely, assets on platform continue to grow but importantly, the Model Portfolio Service proposition continues to be a strategic growth driver within the wealth management sector, all of which help to support our long term growth ambitions.”
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He added: “Macro and geopolitical uncertainty remains; however, I am confident that Tatton’s strong foundations will support our continued consistent growth. While our net inflows in this period have been exceptional, we expect them to return to more normal levels of £200m per month as we move into the second half of the year.
“The board is confident in the future prospects of the group, and we remain on track to meet the board’s expectations for the full year.”
