Tatton Asset Management said on 18 June it has set a new growth target of £30bn AUM/I by the year ended 31 March 2029.
The investment management and IFA support group highlighted in its audited final results for the year ended 31 March 2024 (FY24) “strong, double-digit growth across revenue and adjusted operating profit, at the top end of market consensus, driven by record levels of AUM and net inflows”.
Group revenue increased 13.9% to £36.807m (2023: £32.327m) while adjusted operating profit was up 12.9% to £18.514m (2023: £16.402m) with adjusted operating profit margin at 50.3% (2023: 50.7%)
Profit before tax was £16.75m (2023: £15.996m), net cash stood at £24.8m (2023: £26.5m) while net assets increased to £43.3m (2023: £41.8m).
AUM/I increased 26.9% to £17.604bn (2023: £13.871bn). Current AUM/I at June 2024 c.£18.564bn (AUM c.£17.516bn)
Organic net inflows were £2.303bn (2023: £1.794bn), an increase of 18.1% of opening AUM with an average run rate of £192m per month.
The Group exceeded its three-year ‘Roadmap to Growth’ strategy, which set an ambitious target of £15.0bn AUM/AUI by 31 March 2024, achieving an additional £2.6bn or 17.4% above target.
Tatton’s IFA firms increased by 12.2% to 975 (2023: 869) and the number of client accounts increased 17.9% to 126,150 (2023: 107,010)
Paradigm Mortgages grew market share, participating in mortgage completions totalling £13.1bn (2023: £14.5bn), a 9.7% reduction year on year compared to a 29% year-on-year fall in the gross mortgage market.
Paul Hogarth, chief executive officer, said: “This has been another exceptional year for the Group. We achieved a substantial increase in net inflows, totalling £2.3 billion, with a particularly strong finish in the second half, especially in the last quarter. This performance underscores the organic growth potential in our market, culminating in an end-of-year AUM/I of £17.6 billion—26.9% higher than at the start of the year and 17.4% above our three-year target of £15 billion.
“As promised, we have set a new milestone for the future: we aim to grow our AUM/I to £30 billion by the end of the financial year 2029. I am pleased to report that we have made an encouraging start towards this goal, achieving net inflows of approximately £0.9 billion in Q1 FY25. To put this in perspective, £0.9 billion was the same level of net inflows we achieved in the first half of FY24, the year under review. Whilst this is a very positive start, it is important to note that several large new mandates have boosted net inflows. We are delighted with this, but we do anticipate a return to a more normalised run rate for the remainder of the year.”
He added: “Looking ahead, we are very optimistic about our growth trajectory and the opportunities that lie ahead. Our goal is to exceed our £30 billion AUM/I target, enhance our market position, and continue to support and champion the IFA community. Our focus will remain on maintaining organic growth, improving operational efficiency, and fulfilling our commitments to our stakeholders. We are confident that our strategic approach, coupled with our dedication to excellence, will lead to continued success and solidify our position as a leading asset management firm in the UK.”
