Tatton Asset Management (TAM) H2 2025 earnings summary

Executive summary

• Achieved record net flows of GBP 3.7 billion in FUM for the year, with continued strong inflows post year-end of GBP 600 million.

• Achieved record revenue of £45.3m, up 23.1% year-over-year, with adjusted operating profit rising 23.9% to £22.9m and a margin of 50.6%.

• Assets under management and influence (AUM/I) reached £21.8bn, up 24.0% year-over-year, with organic net inflows of £3.7bn.

• Expanded IFA supporting firms to 1,110, reflecting a broadening distribution network.

• Maintained high asset retention at 98.86% and continued to lead the UK DFM MPS market.

Financial highlights

• Group revenue grew 23% year-over-year, with adjusted operating profit up 24%.

• Adjusted PBT increased 27% to just under GBP 24 million.

• Adjusted fully diluted EPS rose 25.1% to 28.7p; basic EPS up to 26.4p from 21.4p year-over-year.

• Tatton division contributed 86% of revenue, with 26% revenue growth and 28% adjusted operating profit growth.

• Paradigm division delivered 6% revenue growth and 3% adjusted operating profit growth, with mortgage completions up 8.1% to £14.2bn.

Outlook and guidance

• Anticipates monthly flows of GBP 200–250 million, with first 10 weeks averaging GBP 265 million.

• AUM expected to remain stable as new flows offset the loss of the Perspective contract.

• Tatton margin projected at 20–21 basis points; Paradigm to maintain single-digit growth.

• Cost increases expected between 10–12%, with adjusted operating margin above 50%.

• Confident in reaching GBP 30 billion AUM target through organic growth despite Perspective loss.