Tatton will be featured and analysed on the Mello Monday Show tonight
Programme
6pm Interview with Stephen English, Stellar Asset Management
6:30pm “Where are the markets going in 2025” Fund Manager panel featuring Judith MacKenzie, Downing, Rosemary Banyard, Downing, Gervais Williams, Premier Miton and Stephen English, Stellar Asset Management
7:15pm Educational Presentation
7:30pm Mello BASH (Buy, Avoid, Sell, Hold) panel featuring Mark Simpson (Brave Bison), Damian Cannon (Tatton Asset Management) and Kevin Taylor (AJ Bell) |
Investor Presentation video recording now available (HY Results) - November 2024
Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer) of Tatton Asset Management hosted an Investor Presentation covering Interim Results for the six months ended 30 September 2024.
The team covered highlights of the period, which included strong growth in revenues, adjusted operating profit and EPS, an increased dividend and a 13.3% rise in Assets Under Management/Influence to £19.9bn. Management provided a detailed overview of Financial performance and a Strategic update on their 5-year roadmap for growth. An in-depth summary of investment performance was followed by a wide-ranging Question & Answer session.
The full video has been divided into chapters, as below:
0:00:00 Introduction
0:00:17 Key Highlights
0:03:56 Financial Performance
0:13:48 Strategic Update
0:24:27 Investment Management Update
0:32:51 Questions & Answers
Link to full video: |
TAM – Tatton Asset Management
4*
Tatton Asset Management posted strong interims this morning. Assets Under Management/Influence increased 34.9% to £19.948bn up from Sep 2023 £14.784bn a year ago. AUM/I at 31 March 2024 were £17.604bn, an annualised increase of 26.6% for the HY period. Organic net inflows were £1.832bn (Sep 2023: £0.910bn), an annualised increase of 22.1% of opening AUM...from WealthOracle
wealthoracle.co.uk/detailed-result-full/TAM/972 |
 "H1 revenue +24%, profit +23%, forecasts upgraded"
New research report from Equity Development available here:
AUM jumped 14% over H1-25 (to 30 Sep 24) from £16.6bn to £18.9bn. Net inflows added £1,832m (22% p.a. inflow rate, far higher than all peers, see page 4), and investment returns £534m (3.2% over 6m). Including 50%-owned 8AM Global, Assets-Under-Management/Influence totalled £19.9bn. In the six weeks post-results, AUM/AUI increased another 4% to £20.6bn in early-Nov.
This is an exceptionally strong start to the next leg of Tatton’s growth journey. In June ‘24 it set a target of reaching £30bn AUI by end-FY29, an 11% CAGR.
Our previous forecasts assumed average net flows of c£150m per month. That was clearly overly-conservative. Monthly net flows actually averaged £305m over H1-25, far higher than £192m in FY24 and £150m in FY23. We upgrade forecasts assuming net flows of £200m per month for H2-25, as per Tatton guidance, reducing to c£170m per month after that (October net flows: £265m), also as guided.
This change materially increases our FY25 revenue and profit forecasts and our longer-term forecasts (see page 18). In turn, our fundamental valuation increases from 640p per share to 715p.
But with such a superior offering compared to peers in platform MPS (page 5), and structural market tailwinds (page 15), there is certainly potential for Tatton to grow faster than our current forecast and for our fundamental valuation to rise again. |
"Bumper H1-25, AUM up 14% driven by inflows" - new research note available here:
Tatton has recorded an exceptionally strong start to the next leg of its growth journey: in June ’24 it set a target of reaching £30bn of Assets-Under-Management or Influence (AUI) by end-FY29, an 11% CAGR. But H1-25 (to 30 Sep 24) saw AUM jump 14% in just six months from £16.6bn to £18.9bn. Net inflows contributed £1,832m (22% p.a. inflow rate), and investment returns £534m (3.2% over 6m), in line with the MSCI PIMFA Private Investors Balanced Index. Including the AUM of 50%-owned 8AM Global, AUI totalled £19.9bn on 30 Sep 24.
With so much uncertainty around the UK budget (due 30 Oct 24), which could have implications for investors’ capital allocations and financial markets, we feel it prudent to wait a few weeks before updating forecasts, until Tatton’s interim results on 13 Nov. But we certainly see potential for a substantial upgrade if growth continues anywhere close to the current rate. Our June 24 note details our current valuation of 640p per share & Tatton’s growth opportunities in more detail. |
Hmm what caused the sell off |
https://www.tipranks.com/news/company-announcements/tatton-asset-management-agm-to-address-dividend-issues#google_vignette what's this about |
Video recording now available - Investor Presentation video (FY Results - June 2024)
Tatton Asset Management (AIM: TAM) ran viewers through highlights of the Full Year period to 31st March 2024, which included strong, double-digit growth across revenue and adjusted operating profit, driven by record levels of AUM and net inflows.
Management outlined their new growth target to achieve £30 billion in Assets under Influence by the end of the financial year 2029. The team also provided a detailed financial review, an in-depth summary of investment performance and answered questions from viewers.
Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer) presented from the company.
The presentation has been divided into chapters for ease of viewing, as below:
0:00:14 Key Highlights
0:04:22 Financial Performance
0:12:49 Strategic Update
0:23:36 Investment Management Update
0:34:40 Summary
0:36:19 Questions & Answers
Link to video: |
"FY24 forecasts exceeded, very strong start to FY25"
It has been a huge few years for Tatton. The three-year growth target of moving from £9bn AUM on 31 Mar 21 to £15bn Assets Under Influence (AUI) by 31 Mar 24 was comfortably exceeded, with AUI closing 17% above target at £17.6bn – a 96% gain over three years.
Yet FY24 was without doubt the most impressive. AUM jumped +30% over the year purely from organic growth, with net flows of +£2.3bn (record net inflows for Tatton and a net flow rate far higher than all peers - page 4), and a tailwind from investment performance of +£1.5bn.
Tatton has exceeded our previous forecasts for FY24. It has set an ambitious new 5-year plan to reach £30bn AUI by end-FY29. And it has had an exceptionally strong start to FY25, with net inflows of £0.9bn in Q1-25 up to 14 Jun (matching the total inflows of H1-24), bringing AUI to £18.6bn.
We therefore increase our FY25 forecasts as detailed below, as well as our fundamental valuation which rises from 620p to 640p per share.
Link to research note: |
"AUM up 30% in FY24, record flows, forecasts raised"
AUM jumped £3.8bn or +30% in FY24, reaching £16.6bn on 31 Mar 24, 12% above our previous forecast of £14.7bn. Including 50%-owned 8AM Global, Assets Under Influence hit £17.6bn. Investment performance provided a tailwind, adding £1.5bn to AUM. But our key takeaway from Tatton’s hugely impressive last few years, is that it has designed and implemented a superior offering in platform-MPS with net flows consistently far higher than peers. That leadership looks even more pronounced in H2-24 with net flows of £1.4bn v £0.9bn in H1.
Forecasts increase on the jump in AUM, although Tatton has flagged that flows were elevated in H2 and unlikely to continue at quite the same level. Our fundamental value rises to 620p per share (prev. 580p). We will re-visit forecasts in June with final results and when Tatton presents an updated strategic growth target. We also flag growing trading volumes/interest in TAM shares.
New research report: |
Yep, 3.3% of his total holding at the time |
Hogarth sold £1.8m last week |
Took a small amount on that drop, results read well. |
"Sector-leading net flows, double-digit profit growth"
AUM grew 8% over H1-24 (to 30 Sep 23) from £12.7bn to £13.7bn. Net inflows totalled +£910m (7% of opening AUM), an inflow rate far above most peers, with some experiencing substantial outflows (see page 2). Investment performance contributed +£100m to AUM. Encouragingly, Tatton reports that the level of net inflows of H1 has continued into H2.
Revenue was up 10% y-o-y from £15.9m in H1-23 to £17.5m; adjusted operating profit (AOP) increased 11% from £8.0m to £8.9m; and AOP margin hit 50.7%, from an already-impressive 50.1% in H1-23. These margins are far above any comparable business (see page 7).
We highlight the significant growth potential going forward (detailed on pages 9-12): Tatton is in a growing market with significant tailwinds; it has a market-leading proposition and is gaining market share; it has a huge opportunity to grow AUM even without winning new clients (by increasing average AUM per client); and it can accelerate growth through strategic partnerships and acquisitions.
Our fundamental valuation is 580p per share, 18% above the current share price. We also flag that since the end of the bull market (end of 2021), investment/wealth managers and platforms have ‘de-rated’ significantly, with the median PER of a tracked peer group declining 47% from 27.6 to 14.6. We believe there is potential for a significant sector re-rating (see page 16).
Link to report: |
Tatton Asset Management plc issued a trading update for the for the six months ended 30 September 2023 this morning. The Group is performing well and results are in line with the Board's expectations for the Period, with continued growth in both revenue and profits driven by strong net inflows. Total net inflows in the Period were £0.910bn, marginally ahead of both the final six months of the prior financial year (H2 23: £0.887bn) and the same Period last year (H1 23: £0.907bn), total AUM at the end of the Period was £13.720bn (30 September 2022: £11.343bn), an annual increase of 21.0% or £2.377bn. Including 8AM Global Limited assets of £1.064bn, AUM/AUI increased over the last twelve months by 19.8% or £2.441bn to £14.784bn (30 September 2022: £12.343bn). Valuation is unhelpful with forward PE ratio over 20x and PS ratio near 8.6x. Share price also lacks momentum. Monitor for now...
...from WealthOracle |
"Growth rate head-and-shoulders above peers (again)"
AUM grew 8% over H1-24 (to 30 Sep 23) from £12.7bn to £13.7bn. Net inflows totalled £910m (7% of opening AUM), showing remarkable strength and consistency (H1-23: £907m, H2-23: £887m). This is even more impressive given the difficult economic and market environment which has hurt the growth of most sector peers, with some experiencing substantial outflows. Market and investment performance contributed £100m to AUM over the half-year.
‘Assets under influence’ (AUI), which includes the AUM of 8AM Global Limited (£1.1bn) in which Tatton owns a 50% stake, also grew 7% to £14.8bn. This brings the group within touching distance of its medium-term strategic AUI target of £15bn which it set out to achieve by March 2024.
Over H1-24, 51% of our forecast full-year AUM growth has been achieved (flows ahead, markets weaker) and we have left our forecasts unchanged, as well as our fundamental valuation of 580p, which is 22% above the current share price. We also flag that sector valuations have declined extremely sharply, and there is potential for a significant sector re-rating (see page 3).
New research report with audio summary: |
"Forecasts exceeded in FY23, strong start to FY24"
Detailed new research report from Equity Development (with audio summary) here:
In FY23, Tatton (once again) grew much faster than peers. AUM was up 12% y-o-y excluding acquisitions (peer group median: 0%) to £12.7bn on 31 Mar 23 (31 Mar 22: £11.3bn). Assets Under Influence (AUI) reached £13.8bn (including 8AM Global: 50% stake acquired in Aug 22). In just over two months post year-end, AUI has grown another 3% to £14.3bn.
The bulk of growth in FY23 came from exceptionally strong net flows of +£1.8bn (FY22: +£1.3bn); 16% of opening AUM (FY22: 14%) compared to a peer group median of 4% (FY22: 6%). Tatton’s ability to attract and retain assets has been far above peers for some time now. It has clearly designed, and is delivering, an outstanding proposition to clients.
Tatton has exceeded our previous revenue and profitability forecasts for FY23 and we think its differentiated offering within a market sweet-spot (on-platform Model Portfolio Services growth rate: c25% p.a.) will fuel continued strong growth. We increase our FY24 forecasts: revenue from £35.0m to £35.9m; adjusted operating profit from £17.9m to £18.2m. Our fundamental valuation rises from 560p to 580p. |
https://www.thebusinessdesk.com/northwest/news/2115927-tatton-asset-management-excels-and-vows-to-increase-market-share-further |
"Organic growth train rumbles on with inflows +40%"
FY23 AUM closed on £12.7bn (on 31 Mar 23), +12% y-o-y on a like-for-like basis (31 Mar 22: £11.3bn), and well ahead of our previous forecast of £12.2bn. Adding 8AM Global’s assets brings Assets Under Influence up to £13.8bn (Tatton acquired 50% of 8AM in Aug 22).
But most impressively, the bulk of growth came from exceptionally strong net flows of +£1.8bn (16% of opening AUM and +40% y-o-y), with momentum through the year (H1: +£907m; H2: +£887m). Tatton’s ability to attract and retain assets has been far above peers in recent years. It clearly has a strong strategic positioning and is gaining market share.
Our FY23 rev. forecast rises to £31.1m from £30.6m (FY24: £35.0m from £34.0m) and our FY23 adj. operating profit to £15.8m from £15.1m (FY24: £17.9m from £17.8m). We also highlight that Tatton is ahead of its medium-term growth plan. Our core value rises from 500p to 560p per share.
New research note with audio summary: |
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