Tatton Asset Management (TAM) investor relations material

Executive summary

• Achieved strong profitable growth with double-digit increases in revenue, profit, and AUM/I, supported by a rise in profit margin from 50.6% to 52.3%.

• Maintained market leadership in the UK DFM MPS segment, with high asset retention and expanding adviser relationships.

• Full-year dividend increased by 42.1% to GBP 0.27, reflecting confidence in ongoing cash generation and a progressive dividend policy.

• Shareholder returns remain robust, with GBP 64.5 million returned to shareholders and a dividend policy targeting 70% of earnings.

• Assets under management (AUM/I) reached GBP 26.5 billion, with underlying inflows of GBP 2.8 billion and monthly flows trending at GBP 200-250 million.

Financial highlights

• Group revenue rose 20.1% year-over-year to GBP 54.4 million; adjusted operating profit up 24.1% to GBP 28.5 million.

• Adjusted profit margin improved to 52.3%.

• Fully adjusted diluted EPS up 22.3% to 35.1p; annual dividend up 42.1% to 27.0p.

• Cash balance at GBP 33.9 million; net finance income exceeded GBP 1.1 million, all from balance sheet cash.

• Cash from operations was 120% of operating profit; net assets at GBP 55 million.

Outlook and guidance

• FY 2027 guidance for net flows remains at GBP 200-250 million per month, with AUM/I to grow in line with inflows.

• Revenue yield expected to increase to 22 bps as Perspective outflows wash through.

• Group adjusted operating profit margin expected at 53.0%; underlying cost increase guided at 10-12% for the coming year.

• Progressive dividend policy maintained at 70% of adjusted earnings, with a 1/3, 2/3 split.