Half Year 2026 Tatton Asset Management PLC Earnings Call Transcript
Key Points
- Tatton Asset Management PLC (LSE:TAM) reported a significant increase in funds under management, with GBP1.7 billion of new flows over a six-month period, contributing to a total of GBP27.1 billion.
- The company achieved a 19% increase in revenue and a 20% increase in operating profit, with margins rising to 51%.
- The interim dividend increased to 12p for the first half, reflecting a strong financial position.
- Tatton's MPS offerings have shown strong momentum, with six of their portfolios ranking in the top 10 most recommended by De Facto.
- The company maintains a strong balance sheet with GBP34 million in cash and no net debt, providing flexibility for future growth.
- The upcoming loss of the Perspective relationship in January 2026 will result in a reduction of GBP3.5 billion in AUM.
- There is a competitive landscape with over 220 MPS providers, which could impact market share and pricing strategies.
- The company faces potential challenges from macroeconomic factors, such as market volatility and changes in tax policies.
- Paradigm, a part of the business, is becoming subscale, contributing only 7% to overall profitability, which may require strategic decisions regarding its future.
- The company is not currently listed on major platforms like Hargreaves Lansdown and AJ Bell for direct-to-consumer business, limiting potential market reach.
Good morning. Yes, if I could just run you through slide 8, if we could start off there. I'll take you through the sort of the operational highlights and some of the financial highlights as well. Absolutely tremendous six months, could not be happier with what we've achieved over that period. In pa rticular, obviously, you're seeing the funds under management increase, and we had GBP1.7 billion of new flows over that six-month period.
I'm happy to say that, that flow rate has continued post that half year-end. So October has been good. November has been good so far, and we're at GBP27.1 billion in total, so GBP2.1 billion year-to-date on flows. What we put that down to is the growing momentum in MPS. MPS is absolutely only present in the IFA world.
You cannot pick up any press from Citywire or FT Adviser or whatever, not see MPS being front and central and also too on the website as well on all websites, wherever you go, MPS is everywhere. So growing momentum. We're doing incredibly well, I think, in
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