Tatton Asset Management Share Discussion Threads

[topvest] 21/6/2022 20:39

Good presentation I thought.

[freedomexpress747] 16/6/2022 11:20

Pleased to note that for the second year in a row, the report writers of the IFA industry via Professional Paraplanner Magazine have voted Tatton Best Outsourced Investment firm. Very valuable niche here.

[edmonda] 15/6/2022 07:28

#TAM Despite sharp market falls in Q4 of FY22 (Jan-Mar 22), AUM grew 26% y-o-y to £11.3bn (FY21: £9.0bn), with £1.3bn of net inflows (14.2% of opening AUM compared to a sector median of just 4.3%). Revenue grew 26% from £23.4m in FY21 to £29.4m, adjusted operating profit 27% from £11.4m to £14.5m, and adjusted operating margin increased from 48.8% to 49.5% (compared to a sector median of 32%), providing further evidence of operational gearing.

Net cash increased 28% from £16.9m to £21.7m, even though £6.6m was paid in dividends and £3.0m for the first tranche of the Verbatim funds acquisition. Tatton has declared a full-year dividend of 12.5p, 14% up on the 11p distributed in FY21, giving a yield of 3.0%

Our fundamental value is 530p per share. That is c. 27% above the current share price, but down slightly on our previous value of 560p per share - due mainly to an increased discount rate (which is in turn due to the recent jump in UK 10-year Gilt yields which we have used as our risk-free rate).

[tudes100] 21/4/2022 01:37

I'm not sure I agree that TAM is not cheap currently. We're now in FY23, FY forecast is 21.1p EPS but with the acquisition announced yesterday forecasts will be getting increased to close to 22p. This puts them on a fc PE of 19x which given their track record is excellent value imo.

[freedomexpress747] 20/4/2022 15:44

This is not a cheap stock to buy.However, it occupies an almost unique position within the advice industry in that offers a very low cost scaleable discretionary management portfolios across most industry investment platforms. Its portfolios and performances have been excellent. Whilst on paper, others could copy its business model the barriers to entry are significant. It has a very good sustainable business model, which others can only envy.

[edmonda] 20/4/2022 07:53

#TAM AUM ended FY22 (31 Mar 22) on £11.3bn, +26% y-o-y (31 Mar 21: £9.0bn), in line with our previous forecasts. But more impressive, from a longer-term strategic perspective, is the fact that ‘organic’ net inflows of +£1.28bn exceeded our forecasts to make up for an investment performance which was hit by the market turbulence of Q4 (Jan-Mar 22). In fact, net inflows in H2 almost matched H1 (£625m vs £652m).

Tatton has also entered into an agreement to acquire 50% of 8AM Global Limited (8AM), for c£7.0m (£3.5m payable on completion, funded through the issue of new shares, plus two performance-adjusted payments after 12 & 24m). Tatton will have an option to acquire a further 50%. This appears to be a solid strategic fit and in line with Tatton’s acquisition strategy.

Our bullish view on Tatton’s fundamentals remains unchanged, as do our forecasts, other than a small adjustment to FY22 AUM to match the actual closing value. We maintain our fundamental value of 560p per share1 which is around 30% above the TAM share price following its recent fall, although we highlight the fall is not unique to TAM, with ‘growth shares’ generally hard-hit in 2022.

[km18] 11/3/2022 14:29

...from last year...

Tatton Asset Management issued a trading update for the 6 months to September this morning. 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. Total AUM increased by 20.0% or £1.797 billion to £10.787 billion with organic growth contributing 12.8%. Tatton net inflows were £0.652 billion, increasing 98.8% compared to the same period last year. In addition, strong investment performance increased AUM by over 5.0% adding £0.495 billion. Share price has already risen 150% in the post-Covid rally, valuation is not cheap. But the business is growing solidly, is scalable and should deliver very strong EPS growth in coming years. It may not get any cheaper. BUY....

...from WealthOracleAM

[edmonda] 17/11/2021 07:54

#TAM In October, we upgraded our forecasts and fair value based on higher-than-expected AUM at the end of H1 (£10.8bn on 30 Sep, +38% y-o-y), with net inflows being particularly strong (£652m, 99% up on H1 21), and a growth outlook boosted (primarily) by a new distribution agreement concluded with Fintel plc - which provides access to 3,800 intermediary firms.

Tatton’s interims confirm our projected strong H1 performance. Short-term growth momentum continues with AUM reaching £11.2bn on 12 Nov. And progress on the Tenet partnership (incepted 2019) show a ‘snowball’ growth effect kicking in, which reinforces the medium-term potential of the Fintel deal, and supports our forecasts.

In March 21 (AUM: £9.0bn), Tatton outlined a plan to reach £15bn AUM in three years. It targeted £1bn of organic net inflows per year and had a healthy M&A pipeline. Today, with such strong inflow momentum, and in particular the huge potential of the Fintel distribution deal, we think it could hit the target without further acquisitions. On this basis, our fair value is 560p per share.

This value has potential to increase if further value enhancing acquisitions are executed and/or if organic growth exceeds expectations. In addition, given its growth prospects, we don’t consider Tatton’s forward PE (adjusted) of 29 to be particularly demanding.

[edmonda] 19/10/2021 07:27

AUM reached £10.8bn on 30 Sep 21, an increase of 20% in H1 (31 Mar 21: £9.0bn) and up 38% y-o-y (30 Sep 20: £7.8bn). We knew the acquisition of Verbatim funds had boosted H1 AUM by £650m, but net inflows were also stronger than expected, at £652m (99% up on H1 21: £328m).

Average monthly net inflows have recovered strongly since the Feb-Mar 20 Covid crash (when net inflows dipped across the asset management sector), doubling from £55m (six months to 30 Sep 20) to £109m (six months to Sep 21). Tatton has in fact been one of the top performers in the sector when it comes to net inflows, and we see further potential for inflows to accelerate, especially as the new Fintel distribution deal (announced in Sep 21) - which provides access to an additional 3,800 intermediary firms - gathers momentum.

On the back of higher-than-expected total AUM and net inflows, the potential to further boost inflows through the new Fintel distribution deal, and the value-enhancing price paid for the Verbatim funds, we revise our core value from 410p per share to 560p per share. Our revenue forecast for FY 22 increases from £26.3m to £28.1m and adjusted operating profit forecast from £12.8m to £13.7m.

[edmonda] 15/9/2021 07:54

Tatton has made no secret it is hunting for suitable strategic acquisitions and partnerships to complement its smooth-running organic growth strategy. When year-end results (to 31 Mar 21) were announced, we highlighted that it was well positioned to put its significant ‘war chest’ - net cash of £16.9m and a £30m credit facility - to work, and that finding reasonably valued opportunities was likely. Today, Tatton has announced a deal that perfectly fits this strategy: a fund-portfolio acquisition coupled with a long-term strategic distribution partnership.

[edmonda] 17/6/2021 10:39

Investor Webinar recording now available!

We hosted the management team at Tatton AM for an investor webinar presentation and Q&A on 16th June - they discussed their full year numbers, the potential for acquisitions given their cash pile, and the pace at which IFAs are again acquiring new clients and adopting DFM post the pandemic lull.

Watch recording here:

[edmonda] 15/6/2021 07:47

#TAM Tatton’s FY21 results highlight strong momentum in the business. Current AUM inflows have returned to pre-Covid levels and now average £100m per month, with the £9.0bn AUM milestone reached on 31 Mar (subsequently surpassed, reaching £9.5bn on 15 June). That translated to 35% AUM growth for FY21 (AUM 31 Mar 20: 6.7bn).

Tatton hasn’t gone unnoticed by investors. Its market cap has now surpassed £1/4bn, up around 70% y-o-y. However, its valuation compared to peers is still not demanding.

While it is a top-quartile performer when it comes to AUM inflows (as a % of opening AUM), its price-earnings ratio of 27* is below the peer median of 32, and far below its highest rated peers which have PE ratios well north of 40. If it continues to deliver, Tatton will surely appear on more and more investors’ radar screens going forward.

[edmonda] 11/5/2021 20:33

Tatton Asset Management – Full Year Results investor presentation with Q&A will take place on Wed 16 June at 11.30am. Paul Hogarth (CEO), Paul Edwards (CFO), and Lothar Mentel (CIO) will conduct a live presentation covering their results to the FY ended 31 March, and the event is open to all existing and potential shareholders:

[edmonda] 20/4/2021 11:03

Research note and 1 min analyst audio synopsis on the trading update.

[hybrasil] 20/4/2021 07:46

Good old John lee.
What a super trading statement

[chateaumusar] 23/1/2021 19:10

600 and the three bears

[davidosh] 22/1/2021 01:59

There will be a presentation by Tatton A.M at the Mello evening show on Monday 25th January. There are a number of quality presentations including Lord Lee on takeovers and how P.Is miss out. There will be three companies presenting and this will be the first time Tatton have presented at Mello.



You may also enjoy the MelloBASH (Buy, Avoid, Sell or Hold) which is unique to Mello and allows a panel of analysts, professional investors and fund managers to give their measured and researched thoughts on a number of listed companies

If you would like a half price ticket to join the other 600 investors then just enter the code MMTADVFN50 when purchasing your ticket

[johndoe23] 29/10/2020 16:07

Looks like back to 250-255p

[energeticbacker] 20/10/2020 11:51

Covered by Investor's Champion in the latets update
"Great update, but whose assets are they?
While their platform derived AuM are very low cost to support, the underlying client remains under the control of the introducing adviser, with TIM simply an outsourced provider of DFM services.....
Investor's Champion offers valuation thoughts in today's update

[edmonda] 20/10/2020 07:35

The most pleasing aspect of Tatton’s trading update for the six months ending 30 Sep 2020 (H1 2021) was how robust its fundamental offering to clients (financial advisers) has proven to be in highly uncertain market conditions. It continued to attract strong net inflows into its asset management business while also growing its base of IFA consulting and mortgage services clients.

The prospect of beating our previous FY21 forecasts looks promising. Longer-term growth prospects also look strong. We do, however, remain wary of the potential impact of further large market dips. For now, we maintain our fundamental valuation of 300p per share but see room for significant upside on that mark if Tatton continues to deliver.