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Tatton profits rise by £2m after acqusition

Tatton profits rise by £2m after acqusition

Tatton Asset Management's pre-tax profit rose by nearly £2m in the six months to September 30, after a string of acquisitions and new partnerships.

The firm saw a profit of £4.8m, up from £3m in the same period last year.

Revenues rose 26 per cent to £13.8m, up from £11m last year.

In September, the group announced its acquisition of the Verbatim funds from Fintel, SimplyBiz's parent company, for £5.8m.

The acquisition added £650m of Verbatim funds to Tatton's offering.

The firm said it set a roadmap for growth at the end of last year, which included increasing its assets under management from £9bn to £15bn over the next three years.

For the first six months of this plan, the firm’s AUM reached £10.8bn.

Paul Hogarth, chief executive of Tatton, said he was delighted to report the “solid” first interim results.

“Trading momentum has continued since the last market update and post period end and, as a result, we now anticipate that trading for the current financial year will be ahead of the board’s previous expectations.

“The IFA remains at the heart of our business, and our breadth of services, propositions and engagement ensures we maintain existing client relationships while enhancing our ability to attract new firms. 

“Accordingly, as we look forward, we are confident we will continue to make progress and take advantage of the opportunities ahead.”

Net inflows for the six months were £650m, a 99 per cent rise from the £328m seen in the same period last year. 

The group has net cash of £14.7m, and will pay a 4p per share dividend.

In November last year the firm secured a £30m acquisition war chest as it confirmed numerous deal discussions.

The firm's consulting arm, Paradigm Consulting, saw revenue grow by 26 per cent to £3m, compared to the same period in 2020, and its members increased from 407 to 418.

In August, AJ Bell Investcentre added Tatton to its panel of discretionary fund managers in response to “significant demand” from financial advisers. 

sally.hickey@ft.com