Tatton Asset Management announces audited final results for the year ending 31 March 2024

TAM plc announces its audited final results for the year ended 31 March 2024 (“FY24”), which show strong, double-digit growth across revenue and adjusted operating profit, at the top end of market consensus, driven by record levels of AUM and net inflows.

FINANCIAL HIGHLIGHTS

  • Group revenue increased 13.9% to £36.807m (2023: £32.327m)
  • Adjusted operating profit1 up 12.9% to £18.514m (2023: £16.402m)
  • Adjusted operating profit1 margin 50.3% (2023: 50.7%)
  • Profit before tax £16.751m (2023: £15.996m)
  • Adjusted fully diluted EPS2
    increased 11.2% to 22.91p (2023: 20.61p)
  • Final dividend of 8.0p (2023: 10.0p), giving a total dividend for the year of 16.0p (2023: 14.5p) – up
    10.3%
  • Strong financial liquidity position, with net cash of £24.8m (2023: £26.5m)
  • Strong balance sheet – net assets increased to £43.3m (2023: £41.8m)

OPERATIONAL HIGHLIGHTS

 
 
  • AUM/I3
    increased 26.9% to £17.604bn (2023: £13.871bn). Current AUM/I3 at June 2024 c.£18.564bn
    (AUM3
    c.£17.516bn)
  • AUM3
    increased 30.0% to £16.551bn (2023: £12.735bn)
  • Organic net inflows were £2.303bn (2023: £1.794bn), an increase of 18.1% of opening AUM with an
    average run rate of £192m per month
  • The Group exceeded its three-year ‘Roadmap to Growth’ strategy, which set an ambitious target of
    £15.0bn AUM/AUI3 by 31 March 2024, achieving an additional £2.6bn or 17.4% above target
  • Tatton’s IFA firms increased by 12.2% to 975 (2023: 869) and the number of client accounts
    increased 17.9% to 126,150 (2023: 107,010)
  • Paradigm Mortgages grew market share, participating in mortgage completions totalling £13.1
    billion (2023: £14.5 billion), a 9.7% reduction year on year compared to a 29% year-on-year fall in the
    gross mortgage market
  • Mortgage member firms increased 9.4% in the year to 1,916 members (2023: 1,751 members)

OUTLOOK

  • New growth target set at £30 billion AUM/I3 by the end of the financial year 2029
  • Net AUM/I3
    inflows of £0.9 billion in Q1 FY25, matching inflows in the whole of H1 in the year under
    review, with more normalised run rate expected for the remainder of FY25
  • The Board looks to the year ahead and beyond with confidence

1.) Operating profit before exceptional items, share-based payment charges, amortisation of acquired intangibles, changes in fair value of contingent consideration and operating loss relating to non-controlling interest.

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.

 
 

3.) “AUM” is Assets under management. “AUM/I” is Asset under management and influence.

Paul Hogarth, Chief Executive Officer, commented:

“This has been another exceptional year for the Group. We achieved a substantial increase in net inflows, totalling £2.3 billion, with a particularly strong finish in the second half, especially in the last quarter. This performance underscores the organic growth potential in our market, culminating in an end-of-year AUM/I of £17.6 billion—26.9% higher than at the start of the year and 17.4% above our three-year target of £15 billion.

 
 

“As promised, we have set a new milestone for the future: we aim to grow our AUM/I to £30 billion by the end of the financial year 2029. I am pleased to report that we have made an encouraging start towards this goal, achieving net inflows of approximately £0.9 billion in Q1 FY25. To put this in perspective, £0.9 billion was the same level of net inflows we achieved in the first half of FY24, the year under review.

“Whilst this is a very positive start, it is important to note that several large new mandates have boosted net inflows. We are delighted with this, but we do anticipate a return to a more normalised run rate for the remainder of the year.”

Commenting on the outlook, he added:

 
 

”Looking ahead, we are very optimistic about our growth trajectory and the opportunities that lie ahead. Our goal is to exceed our £30 billion AUM/I target, enhance our market position, and continue to support and champion the IFA community. Our focus will remain on maintaining organic growth, improving operational efficiency, and fulfilling our commitments to our 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.”

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