TIDMTAM
RNS Number : 2632K
Tatton Asset Management PLC
21 April 2020
Tatton Asset Management plc
("TAM Plc" or the 'Group')
Trading statement for 12 months ended 31 March 2020
Tatton Asset Management plc (AIM: TAM), the on-platform
discretionary fund management (DFM) and IFA support services
business, is pleased to announce the following trading update ahead
of its Final Results for the year ended 31 March 2020 ("FY20" or
the "Period"), which are scheduled to be released on Tuesday 16
June 2020.
The Group has delivered a third consecutive year of growth in
revenue, adjusted operating profits* and assets under management
("AUM"), in a period dominated by the complex political and market
backdrop of Brexit and ending with a global health crisis.
The Board expects FY20 results to be in line with analysts'
forecasts.
Highlights
Tatton Investment Management has performed strongly with net
inflows in the year of GBP1.129bn or 18.6% of opening AUM, an
average of GBP94.1m per month. Net inflows in the second half of
the year totalled GBP688m, an increase of 56.0% on the first six
months of the year. Net inflows in March were GBP86m and while only
marginally behind the monthly average were affected by the
consequences of the COVID-19 pandemic.
The year ended with AUM of GBP6.651bn (31 March 2019:
GBP6.068bn, 30 September 2019: GBP6.981bn) an increase of GBP583m
or 9.6% for the year having reached a peak of GBP7.758bn on 21
February 2020. The closing balance of AUM was impacted by a
negative market performance of 14.3% towards the end of the
financial year due to market falls related to the COVID-19
pandemic.
Total GBPm
---------------------------------------- -----------
Opening AUM 1 Apr 2019 6,068
Net flows 1,129
Acquisitions (Sinfonia) 135
Annual market & investment performance (681)
---------------------------------------- -----------
Closing AUM 31 Mar 2020 6,651
Paradigm has performed well and delivered a year of good growth.
Mortgage Services (the Group's mortgage distribution and support
services business) maintained the momentum in the second half of
the year and continued to grow well. Member firms increased 10.9%
to 1,544 at the end of the year with associated gross lending from
completions increasing 17.5% to GBP9.86bn (31 March 2019:
GBP8.39bn). Paradigm Consulting (the Group's IFA support business)
increased the number of member firms to 394 (31 March 2019: 390, 30
September: 385).
COVID-19 Update
The Group responded swiftly to the Covid-19 outbreak and
efficiently implemented comprehensive business continuity plans
when it was necessary to pivot to remote working, seamlessly
replicating our processes and systems, safe guarding the health and
safety of our employees and ensuring that the business continues to
service our clients as normal. The Group will not be taking
advantage of any Government support scheme, which the Board
believes are intended for businesses which have been significantly
more affected than TAM plc.
The full implications of the impact of COVID-19 on the financial
performance of the Group in the future remain uncertain. As we
progress over the next two months, the Board believes that it will
be in a much better place to provide a comprehensive update to the
market, with guidance given when we release our full year results
in June.
Dividend policy unchanged
The Board remains committed to its dividend policy and prudently
allocates its earned profit between returns to shareholders,
supporting the capital base and further investment to support the
future growth of the business.
Cash
The Group remains in a healthy financial position and with a
strong balance sheet and GBP12.8m of net cash.
Paul Hogarth, Founder and CEO of Tatton Asset Management plc,
said:
"On behalf of TAM PLC, in common with other businesses, I would
like to take the opportunity to acknowledge the fantastic work of
the NHS, Care and front line key workers, and thank them all for
their outstanding commitment to saving lives and supporting the
country in these difficult times.
I would also like to offer my thanks to each and every one of
our employees who have responded magnificently to the challenges
that we are all now facing. Key to this has been the constant
communication and support to our client base, ensuring all our IFAs
and their clients remain fully informed of developing events.
Against a very complex backdrop, we are pleased to report
further positive progress for the Group. Despite the challenges of
this trading period, we have continued to perform strongly, and
delivered on the commitments we set out at our IPO in July
2017.
The sustained growth of Tatton's AUM has been supported by
consistent investment performance and strong net inflows, which
have been the pillars of our success. Underpinning this is our DFM
proposition which remains the most competitive in the market, has
no minimum investment value and delivers a standard of service to
all levels of investors irrespective of portfolio size which, in
other providers is normally reserved only for wealthier clients. It
is in these uncertain times that having access to a DFM to manage
your investments has never been more important and we are proud to
play our part in this process.
Paradigm continues to benefit from the amalgamation of
Consulting and Mortgages announced at our Half Year Results on
11(th) November 2019, with the Consulting membership base growing
modestly and new mortgage firms delivering record levels of
associated gross lending.
Whilst we are currently experiencing a period of uncertainty as
a result of the impact of Covid-19, our balance sheet and ambition
remain strong and the Group is well positioned to execute its
stated strategy of growth both organically and via acquisition in
the long-term."
*Adjusted for exceptional items, share based payments and
amortisation
Enquiries:
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
N+1 Singer - Joint Broker
Peter Steel (Corporate Finance) +44 (0) 20 7496 3061
Rachel Hayes (Corporate Broking) +44 (0) 20 7496 3189
Belvedere Communications - Financial
PR
John West
Cat Valentine
Llew Angus + 44 (0) 20 3687 2754
Trade Media Enquiries
Roddi Vaughan-Thomas +44 (0) 20 7139 1452
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END
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April 21, 2020 02:00 ET (06:00 GMT)
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