Tatton Asset Management plc

https://www.tattonassetmanagement.com/ TICKER: TAM     EXCHANGE: AIM

Tatton Asset Management was founded in 2007 and provides three services to smaller, UK-based Independent Financial Advisers: discretionary asset management; regulatory and compliance consulting and outsourcing; and mortgage and protection insurance aggregation. 

LATEST REPORTS

 
Growth, profitability, opportunity
Published: Nov 19 2019

Tatton, the UK’s largest provider of on-platform discretionary fund management services to IFAs, has released its interim results for the six months to 30 September 2019 and showed successful delivery against nearly all key metrics. We believe the prospects to rapidly scale up AUM and boost profits because of the (already proven) opportunity for operational leverage justify a fair value of 300p / share. 
We believe the business is set to maintain its growth and profit trajectory because:
  • There is a powerful market trend of IFAs moving more and more of their client assets onto discretionary fund management (DFM) platforms (a £48bn market , up from £5bn in 2011), avoiding the regulatory and risk burden of selecting investments for end-clients themselves;
  • Tatton has carved out a market-leading proposition in this space, especially with respect to the two most important criteria advisers use to select a DFM: fees and investment performance;
  • It has tried-and-tested methods of winning new clients and capturing a higher share of their AUM;
  • Operational leverage should see margins improve further as the business scales;
  • The adviser support services business complements the asset management business well and provides deep IFA market insights.
To watch an interview with Paul Hogarth, CEO, click here: https://equitydevelopment.co.uk/webinars/?d=%3D%3DwN1YjM
 
Half year results interview with CEO, Paul Hogarth
Published: Nov 18 2019

Paul Hogarth, CEO, discusses TAM rise in AUM, their DFM service which is providing a solution to compliance burdened IFAs, and the consolidation of their IFA mortgage and consultancy business.
 
Scale-up train on track
Published: Oct 17 2019

Tatton’s trading statement for the half-year ending 30 September 2019 confirmed continued momentum in AUM growth, which increased to £7.0bn, up 14.8% over the half-year (from £6.1bn on 31 March 19) and 23% year-on-year. 
The group’s first acquisition since its 2017 listing (a strategy made explicit at that time) has also been announced, which contributed £135m of the £0.9bn AUM increase. Organic AUM growth was 12.5%. 
We see significant opportunity for the asset management side of the business to scale quickly and be the primary driver of strong future earnings growth as operational leverage kicks in.

ARCHIVE