Tatton Asset Management turns in robust set of results

Tatton Asset Management (TAM) reported robust growth across its key metrics in its full-year results on Tuesday, meeting market expectations.

The AIM-traded company reported a 10.1% increase in group revenue for the 12 months ended 31 March, reaching £32.33m, which it pout down to the success of its strategies and the effective management of its investment portfolio.

Adjusted operating profit rose 12.9% to £16.4m, and its adjusted operating profit margin stood at 50.7%, compared to 49.5% in the prior year.

Additionally, adjusted fully diluted earnings per share experienced positive growth of 10.7%, reaching 20.61p.

The company announced a 17.6% increase in its final dividend, raising it to 10.0p per share from 8.5p in 2022.

That brought the full-year dividend to 14.5p, up from 12.5p in the prior year.

TAM said it was maintaining a strong liquidity position, with net cash amounting to £26.49m, compared to £21.71m at the end of the 2022 financial year.

The firm’s balance sheet also showed a substantial improvement, with net assets rising 34.6% to £41.78m, from £31.04m a year earlier.

“This is the 10th anniversary year for Tatton and I am delighted with the progress we have continued to make throughout that decade,” said chief executive officer Paul Hogarth.

“While it has been a difficult and volatile year for many asset managers and businesses, we have continued to execute our strategy and build on our strengths, leveraging our wide distribution capability, deep industry expertise, robust long-term investment performance and talented team across the whole business.

“As we look forward, we are mindful that we remain in uncertain times, both from an economic and geo-political standpoint.”

Hogarth said that while the company was not unaffected by those conditions, despite the uncertainty it was optimistic about its prospects.

“Assets on platform continue to grow and our MPS proposition is becoming increasingly attractive to IFAs and their clients.

“With our long-term consistent investment track record rewarding and enhancing client outcomes, wide distribution footprint and competitive market position we are well placed to capitalise on these conditions and achieve our goal of delivering long-term, sustainable growth for all our stakeholders.”

At 1300 BST, shares in Tatton Asset Management were up 1.21% at 460p.

Reporting by Josh White for Sharecast.com.