Tatton Asset Management PLC Trading Update and Notice of Results (4450P)

TIDMTAM

RNS Number : 4450P

Tatton Asset Management PLC

19 October 2021

For release: 07.00, 19 October 2021

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Tatton Asset Management plc

("TAM plc" or the "Group")

AIM: TAM

Trading Update and Notice of Results

Tatton Asset Management plc (AIM: TAM), the investment management and IFA support services business, is today providing an unaudited period end update on the Group's performance for the six months ended 30 September 2021 (the "Period"). The unaudited results for the Period will be announced on Wednesday, 17 November 2021.

The Group delivered strong growth across all its key metrics during the Period, including revenue, profits and assets under management ("AUM") and the Group is trading in line with expectations.

TAM continues to execute its strategy successfully, growing AUM both organically and through acquisition in the Period. Total AUM increased by 20.0% or GBP1.797 billion to GBP10.787 billion (Mar 2021: GBP8.990 billion) in the Period with organic growth contributing 12.8%.

Tatton net inflows were GBP0.652 billion, increasing 98.8% compared to the same period last year (Sep 2020: GBP0.328 billion). In addition, strong investment performance increased AUM by over 5.0% adding GBP0.495 billion and the recent Verbatim acquisition contributed a further GBP0.650 billion.

 
                                    Total GBPbn 
----------------------------------  ----------- 
Opening AUM 1 April 2021                  8.990 
Net inflows                               0.652 
Market and investment performance         0.495 
Acquisition of Verbatim funds             0.650 
Closing AUM 30 September 2021            10.787

Paradigm, the Group's IFA support services business, also continued to grow, with Mortgage firms increasing to 1,646 (31 March 2021: 1,612) and Consulting member firms increasing to 418 (31 March 2021: 407). Paradigm Mortgages saw an increase in market activity in the Period driven by the stimulus of the UK Government's stamp duty holiday coupled with an improved lending environment. As a result, mortgage completions increased to GBP6.5 billion (30 September 2020: GBP5.0 billion), an increase of 30.0%.

Paul Hogarth, Founder and CEO of Tatton Asset Management plc, said:

"We continued to make excellent progress in the first six months of this financial year delivering very good growth across all parts of our business. We are delighted to have reached GBP10.8 billion of AUM at the end of September. This has been delivered through a combination of strong organic growth of 12.8% and the acquisition of Verbatim funds, announced towards the end of the Period, which added a further GBP0.7 billion to the total.

"Following the recent acquisition of the Verbatim fund range and strategic partnership with Fintel, we remain excited about the future opportunity for the Group. We are pleased with the start we have made and look forward to developing stronger relationships with the firms over the rest of this year and beyond. Alongside this, Paradigm continues to perform well as we continue to attract new firms to our services, with the value of mortgage completions during the Period reaching record levels.

"As we look forward to the rest of the year, we are confident of making further progress and delivering 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 Capital - Nomad and Broker 
  Martin Green (Corporate Finance) 
  Dan Bate (Corporate Finance and 
  QE)                                                  +44 (0) 20 3829 5000 
 
  Singer Capital Markets - Joint Broker 
  Peter Steel, Rachel Hayes, Amanda 
  Gray (Investment Banking) 
                                                       +44 (0) 20 7496 3000 
Belvedere Communications - Financial 
 PR                                                     +44 (0) 7407 023147 
 John West / Llew Angus (media)                        + 44 (0) 7715 769078 
 Cat Valentine / Keeley Clarke (investors)         tattonpr@belvederepr.com 
 
  Trade Media Enquiries 
  Roddi Vaughan Thomas (Head of Communications)        +44 (0) 7469 854 011

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

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October 19, 2021 02:00 ET (06:00 GMT)

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