Tatton Asset Management (TAM) H1 2025 earnings summary

Executive summary

• Achieved record organic net inflows of £2.3bn YTD and £1.832bn in H1 2024, with AUM/I rising 34.9% year-over-year to £19.948bn at 30 Sep 2024, reflecting strong momentum and continued growth.

• Group revenue up 23.7% to £21.7m and adjusted operating profit up 22.8% to £10.9m, with margins above 50%.

• Interim dividend increased 18.8% to 9.5p per share, with a payout ratio of 70% of adjusted earnings, reflecting robust cash generation and confidence in future growth.

• Over 1,038 IFA businesses now contribute weekly, with client accounts up 10.4% to 139,330 and increasing numbers providing over £1m per week.

• Maintained a leading position in the UK DFM MPS market, supported by a scalable, capital-light business model and high recurring revenues.

Financial highlights

• Revenue and adjusted operating profit both grew by 23.7% year-over-year in H1, with adjusted operating profit margin stable at 50.3%.

• Adjusted fully diluted EPS increased 30% to 13.67p; basic EPS rose to 13.03p from 8.97p.

• Net cash position at period end was £26.9m, with capital resources at 265% of regulatory requirements.

• Net finance income from balance sheet cash reached nearly £500k for H1, expected to approach £1m for the full year.

• Operating cash conversion at 94%, with strong liquidity and regulatory capital headroom.

Outlook and guidance

• Guidance for net inflows of £200m per month for H2, maintaining prudent expectations.

• On track to reach £30bn AUM/I by FY29, regardless of Perspective contract outcome.

• Paradigm H2 performance anticipated to be consistent with H1; continued investment in people to support growth.

• Anticipate group margin to rise to high 50s as Tatton grows faster than Paradigm.

• Cost growth expected at 10–12% medium term, with no foreseeable cost cliff.