Discretionary fund manager Tatton Asset Management expect to use the £10.6m of cash it raised via an initial public offering (IPO) on the stock market in July 2017 for acquisitions.
Company chief executive Paul Hogarth said “the money, and maybe a little more than that, will be used for acquisitions. It is certainly something we want to be part of, though we haven’t decided yet in what way.”
The company attracted inflows of £80m a month in the year to 31 March 2018. Mr Hogarth said it is particularly pleasing for him that these inflows came as a result both of existing clients placing more money with the firm and the total number of financial advisers now using the service having grown to 340.
Mr Hogarth said the trend is for advisers to outsource investment management to a firm such as his to a discretionary fund manager due to time constraints.
As a result the company, which floated on the stock exchange in July 2017, managed £4.9bn of assets at the end of the financial year, a rise of 25.6 per cent, compared to the previous year of £3.9bn.
The company posted an operating profit of £6.5m, an increase of 44 per cent on the £4.5m achieved the previous year.
In a statement to the stockmarket this morning (27 June) said it can grow without investing heavily in fixed costs, which should help margins grow in future.
Mr Hogarth said: “I am delighted to report our maiden results since our successful IPO in July last year.
"We have continued the strong growth we announced at the half year, delivering a valuable 25.6 per cent increase in discretionary assets under management and a strong underlying performance across each of our three businesses.
"Post the year-end, we have surpassed a significant milestone - £5bn of discretionary AUM – which is a considerable achievement for the team.”
David.Thorpe@ft.com
