Tatton Asset Management (TAM) H2 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance, with group revenue up 13.9% to £36.8m and adjusted operating profit up 12.9% to £18.5m compared to the prior year.

• Assets under management/influence (AUM/AUI) rose 26.9% year-over-year to £17.6bn, with record organic net inflows of £2.3bn, representing 18.1% of opening AUM.

• Fully adjusted diluted EPS increased 11.2% to 22.91p, and the total year dividend grew 10.3% to 16.0p.

• Strategic focus remains on organic growth, expanding IFA relationships, and disciplined M&A to support AUM growth.

Financial highlights

• Group revenue increased 13.9% to £36.8m and adjusted operating profit rose 12.9% to £18.5m year-over-year.

• Adjusted operating margin remained robust at 50.3% (prior year: 50.7%).

• Adjusted profit before tax up 19.1% to £18.8m; profit for the year was £12.9m.

• Cash at year-end was £24.8m, with strong cash generation from operations (£16.9m).

• Return on capital employed held steady at 42%.

Outlook and guidance

• FY25 net inflows expected to normalize to £150m–£200m per month; June 2024 AUM/I reached £18.6bn.

• Adjusted operating profit margin anticipated to remain strong, with 1–2% annual increase expected.

• Inflationary environment expected to persist at 3–5%, with ongoing investment in sales, distribution, and service resources.

• New five-year target set to reach £30bn AUM/I by FY29, driven by organic net inflows and potential M&A.