Tatton Asset Management expects FY results to beat analyst forecasts

Investment manager Tatton Asset Management expects its results for the twelve months ended 31 March to be ahead of all analysts' forecasts.

Tatton said on Tuesday that its Tatton Investment arm had further improved its performance in the second half of the year, with net inflows of £427.0m, an increase of 30% on the first six months of the year, while total inflows for the year were £755,0m, or 11.3% of opening assets under management.

Tatton ended the year with an AUM of £9.0bn, an increase of £2.3 billion or 35.2% for the year.

The AIM-listed group's Paradigm unit was also said to have "performed well", with consulting member firms increasing from 394 to 407 and mortgage firms increasing 4.4% to 1,612.

Paradigm Mortgages saw an increase in market activity in the second half of the year, driven by the stimulus of the government's stamp duty holiday and an improved lending environment, leading to a marked 20% increase in gross lending during the second half of the year to £6.0bn - making an annual total £11.0bn.

Tatton said its performance demonstrated the resilience of its business model and added that the firm remains in "a healthy financial position", with a strong balance sheet and £16.9m of net cash.

Chief executive Paul Hogarth said: "I am pleased to report that TAM continued to make very good progress this last financial year, building on a positive first-half performance and delivering an even stronger second half of the year.

"Our strong performance proves the resilience of our business model which is supported by a high degree of annual recurring revenues and cash flow generation creating a strong balance sheet which is the bedrock of all good businesses. As we enter the new financial year, we carry forward good momentum and expect to make further progress in the execution of our strategy."

As of 0910 BST, Tatton shares were up 8.47% at 410.0p.