This article first appeared on GuruFocus .
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Funds Under Management (FUM):GBP27.1 billion, with GBP1.7 billion of new flows over the six-month period.
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Revenue Growth:Increased by 19%.
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Operating Profit Growth:Increased by 20%.
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Profit Margin:Group margin increased to 51%, Tatton margin at 64%.
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Adjusted Earnings Per Share:Increased by 17%.
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Interim Dividend:Increased to 12p for the first half.
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Net Assets:GBP55.9 million.
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Cash on Balance Sheet:GBP34 million, net debt free.
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Paradigm Revenue Growth:Increased by 6%.
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Paradigm Operating Profit Growth:Increased by 6%.
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Mortgage Lending:Increased to GBP8.6 billion year-on-year.
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Number of Supporting IFA Firms:Increased to 1,170.
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Average Account Size:GBP154,000 per account holder.
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Annual Cost Increase Guidance:10% to 12% going forward.
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Capital Adequacy Headroom:GBP22 million above requirement.
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Release Date: November 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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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.
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The company achieved a 19% increase in revenue and a 20% increase in operating profit, with margins rising to 51%.
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The interim dividend increased to 12p for the first half, reflecting a strong financial position.
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Tatton's MPS offerings have shown strong momentum, with six of their portfolios ranking in the top 10 most recommended by De Facto.
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The company maintains a strong balance sheet with GBP34 million in cash and no net debt, providing flexibility for future growth.
Negative Points
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The upcoming loss of the Perspective relationship in January 2026 will result in a reduction of GBP3.5 billion in AUM.
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There is a competitive landscape with over 220 MPS providers, which could impact market share and pricing strategies.
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The company faces potential challenges from macroeconomic factors, such as market volatility and changes in tax policies.
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Paradigm, a part of the business, is becoming subscale, contributing only 7% to overall profitability, which may require strategic decisions regarding its future.
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The company is not currently listed on major platforms like Hargreaves Lansdown and AJ Bell for direct-to-consumer business, limiting potential market reach.
Q & A Highlights
Q: Could you discuss the challenges of integrating other MPS providers onto your platform? And can you elaborate on what additional aspects the duty review might cover? A: Lothar Mentel, Chief Investment Officer, clarified that Tatton is not a platform but a pure DFM MPS provider, operating on 19 different platforms. The regulator's focus is likely on fairness of pricing, which is not a concern for Tatton as they maintain consistent pricing across services.
Q: Why is Tatton not on Hargreaves Lansdown and AJ Bell? A: Paul Hogarth, CEO, explained that Tatton is IFA-only and does not take consumer money directly. They are on AJ Bell's platform for B2B transactions but not for direct-to-consumer services.
Q: Can you provide more detail regarding the AUM target with or without Perspective? A: Paul Hogarth confirmed that the contract with Perspective is ending, but Tatton is confident in reaching the GBP30 billion AUM target through organic growth, even without Perspective's assets.
Q: Given the declining number of smaller IFA firms, will Tatton focus on larger IFA firms for growth? A: Paul Hogarth stated that Tatton is content with focusing on small and medium-sized IFA firms, noting that new firms are emerging, and consolidation is beneficial for the industry.
Q: Do you see momentum continuing in the MPS space, and what factors might slow progress? A: Paul Hogarth expressed confidence in maintaining market share and momentum in the MPS space, emphasizing Tatton's strong position and consistent investment returns.
Q: Are the Board concerned that Tatton's market share will fall? A: Paul Hogarth assured that the Board is not concerned about losing market share, as Tatton is seen as a leader and continues to be a preferred choice for IFAs.
Q: What are Tatton's plans for management succession when key executives retire? A: Paul Hogarth mentioned that there are no immediate plans for retirement, and the company has a strong management team in place, with succession planning being a distant future consideration.
Q: What are your thoughts on moving from AIM to a full listing? A: Paul Hogarth indicated that Tatton aims to move to the main market in 18 months to two years, once the market cap reaches around GBP700 million, and is preparing for this transition.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
