Tatton Asset Management’s pre-tax profit jumps 37.3% to £16.027 million
Key Facts
Tatton Asset Management reported a 37.3% increase in pre-tax profit to £16.027 million for the six months ended September 30, 2026, the first half of fiscal 2027. The company said in its unaudited interim report that group revenue rose 24.8% to £32.071 million, compared with £25.691 million in the corresponding period. Adjusted fully diluted earnings per share also rose 35.0% to 21.62 pence, from 16.02 pence. The company attributed revenue and profit growth to asset expansion and net inflows. The results also showed that net organic flows fell below both the comparable period’s level and the range management had expected for the period.
Total assets under management and influence rose 15.5% during the period to £27.968 billion on September 30, from £24.216 billion on March 31, 2026. The increase of £3.752 billion, the company said, comprised £2.415 billion from investment performance, £1.004 billion in net organic flows and an increase of £0.333 billion in assets under influence at 8AM Global. Chief Executive Paul Hogarth said assets stood at approximately £28.0 billion and net investment performance added £2.4 billion. He added that net flows exceeded £1.0 billion, equivalent to annualized growth of 8.8% of opening-period assets. The figures show investment performance was the largest single component of asset growth over the six months.
Net organic flows were £1.004 billion, compared with £1.352 billion on a like-for-like basis in the first half of fiscal 2026. The flows represented 8.8% of opening-period assets on an annualized basis, the company said. Average flows were £167 million a month, compared with an average of £225 million in the corresponding period. Management said this average was below its forecast range of £200 million to £250 million a month. It attributed the gap to increased consolidation among financial advisory firms in the second quarter, explaining that underlying flows remained within the expected range when the effect of consolidation was excluded.
The company expanded its client base during the six months, with the number of independent financial advisory firms working with it rising 6.3% to 1,295 on September 30, from 1,218 on March 31, 2026. The number of client accounts increased 4.1% to 164,350, compared with 157,850 at the end of March. Management said demand for outsourced investment management services reflected advisers’ shift toward outsourcing portfolio management and focusing on financial planning and client relationships. Against the industry backdrop, the company said the U.K. discretionary managed portfolio market grew 19.7% in the year ended June 2026, reaching £241 billion. It added that its market share remained at 12% that month.
Tatton declared an interim dividend of 11.0 pence a share for fiscal 2027, down from 12.0 pence a share in the previous year. The shares will trade ex-dividend on November 19, 2026, and the record date for eligible shareholders is November 20. The dividend is scheduled to be paid on December 11, 2026. The company had net cash of £35.084 million at the end of September, compared with £34.050 million on the corresponding date in 2025. The reduction in the interim dividend accompanied the reported growth in revenue and profit during the period.
The company said assets under management and influence stood at £28.411 billion on November 6, 2026, after the reporting period ended. That compares with its target of reaching £30 billion by the end of fiscal 2029. Management also said the company was entering the second half with confidence, noting that revenue and profit growth and an improved margin reflected the scalability of its model. Management linked demand for its services to advisers’ trend of outsourcing portfolio management. The stated target puts the asset growth trajectory at the forefront of the company’s indicators for the period ahead.