Andrada Mining acquisition elevates the miner to emerging mid-tier status. Watch the video here.
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Started: EquityDevelopmen, 20 Jun 2024 16:08
Last post: EquityDevelopmen, 20 Jun 2024 16:08
Tatton Asset Management (AIM: TAM) ran viewers through highlights of the Full Year period to 31st March 2024, which included strong, double-digit growth across revenue and adjusted operating profit, driven by record levels of AUM and net inflows.
Management outlined their new growth target to achieve £30 billion in Assets under Influence by the end of the financial year 2029. The team also provided a detailed financial review, an in-depth summary of investment performance and answered questions from viewers.
Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer) presented from the company.
The presentation has been divided into chapters for ease of viewing, as below:
0:00:14 Key Highlights
0:04:22 Financial Performance
0:12:49 Strategic Update
0:23:36 Investment Management Update
0:34:40 Summary
0:36:19 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/tatton-asset-management-fyresults-investorpresentation-19june2024
Started: EquityDevelopmen, 18 Jun 2024 07:33
Last post: EquityDevelopmen, 18 Jun 2024 07:33
It has been a huge few years for Tatton. The three-year growth target of moving from £9bn AUM on 31 Mar 21 to £15bn Assets Under Influence (AUI) by 31 Mar 24 was comfortably exceeded, with AUI closing 17% above target at £17.6bn – a 96% gain over three years.
Yet FY24 was without doubt the most impressive. AUM jumped +30% over the year purely from organic growth, with net flows of +£2.3bn (record net inflows for Tatton and a net flow rate far higher than all peers - page 4), and a tailwind from investment performance of +£1.5bn.
Tatton has exceeded our previous forecasts for FY24. It has set an ambitious new 5-year plan to reach £30bn AUI by end-FY29. And it has had an exceptionally strong start to FY25, with net inflows of £0.9bn in Q1-25 up to 14 Jun (matching the total inflows of H1-24), bringing AUI to £18.6bn.
We therefore increase our FY25 forecasts as detailed below, as well as our fundamental valuation which rises from 620p to 640p per share.
Link to research note: https://www.equitydevelopment.co.uk/research/fy24-forecasts-exceeded-very-strong-start-to-fy25
Started: EquityDevelopmen, 31 May 2024 11:18
Last post: EquityDevelopmen, 31 May 2024 11:18
Tatton Asset Management (AIM: TAM), the investment management and IFA support services Group, will be conducting a presentation covering its Full Year results for the year ended 31 March 2024.
The event will be hosted by Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer).
The online presentation will take place at 1.30pm on Wednesday 19th June, and is open to all existing and potential shareholders.
Questions can be submitted during the presentation to be addressed at the end.
Link to register: https://www.equitydevelopment.co.uk/news-and-events/tattonam-investor-presentation-19june2024
Started: EquityDevelopmen, 16 Apr 2024 07:39
Last post: EquityDevelopmen, 16 Apr 2024 07:39
AUM jumped £3.8bn or +30% in FY24, reaching £16.6bn on 31 Mar 24, 12% above our previous forecast of £14.7bn. Including 50%-owned 8AM Global, Assets Under Influence hit £17.6bn. Investment performance provided a tailwind, adding £1.5bn to AUM. But our key takeaway from Tatton’s hugely impressive last few years, is that it has designed and implemented a superior offering in platform-MPS with net flows consistently far higher than peers. That leadership looks even more pronounced in H2-24 with net flows of £1.4bn v £0.9bn in H1.
Forecasts increase on the jump in AUM, although Tatton has flagged that flows were elevated in H2 and unlikely to continue at quite the same level. Our fundamental value rises to 620p per share (prev. 580p). We will re-visit forecasts in June with final results and when Tatton presents an updated strategic growth target. We also flag growing trading volumes/interest in TAM shares.
New research report: https://www.equitydevelopment.co.uk/research/aum-up-30-in-fy24-record-flows-forecasts-raised
Started: EquityDevelopmen, 23 Nov 2023 16:20
Last post: EquityDevelopmen, 23 Nov 2023 16:20
Tatton Asset Management (AIM: TAM) ran viewers through highlights of the period to 30th September which included strong net inflows and growth in revenues & profits, with adjusted operating margin hitting 50.7% - far above any comparables.
Management provided a financial review and outlined the significant growth potential going forward. With strong tailwinds they detailed the opportunities and challenges around M&A with price expectations remaining high, while highlighting their organic growth in market share. An in-depth summary of investment performance was followed by questions from viewers.
Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer) presented from the company.
The presentation has been divided into chapters for ease of viewing:
0:00:03 Overview of Tatton AM
0:02:01 Key Highlights
0:05:20 Financial Performance
0:13:15 Strategic Update
0:27:46 Investment Management Update
0:37:45 Summary
0:37:53 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/tatton-asset-management-interim-results-investor-presentation-22-november-2023
Started: EquityDevelopmen, 16 Nov 2023 07:54
Last post: PBryant, 16 Nov 2023 10:41
And in the Tatton analyst presentation this morning, company confirms it has hit its £15bn assets under management/influence target early- in March 2021 (when AUM was £9bn) it set out to reach a £15bn target by March 2024
AUM grew 8% over H1-24 (to 30 Sep 23) from £12.7bn to £13.7bn. Net inflows totalled +£910m (7% of opening AUM), an inflow rate far above most peers, with some experiencing substantial outflows (see page 2). Investment performance contributed +£100m to AUM. Encouragingly, Tatton reports that the level of net inflows of H1 has continued into H2.
Revenue was up 10% y-o-y from £15.9m in H1-23 to £17.5m; adjusted operating profit (AOP) increased 11% from £8.0m to £8.9m; and AOP margin hit 50.7%, from an already-impressive 50.1% in H1-23. These margins are far above any comparable business (see page 7).
We highlight the significant growth potential going forward (detailed on pages 9-12): Tatton is in a growing market with significant tailwinds; it has a market-leading proposition and is gaining market share; it has a huge opportunity to grow AUM even without winning new clients (by increasing average AUM per client); and it can accelerate growth through strategic partnerships and acquisitions.
Our fundamental valuation is 580p per share, 18% above the current share price. We also flag that since the end of the bull market (end of 2021), investment/wealth managers and platforms have ‘de-rated’ significantly, with the median PER of a tracked peer group declining 47% from 27.6 to 14.6. We believe there is potential for a significant sector re-rating (see page 16).
Link to report: https://www.equitydevelopment.co.uk/research/sector-leading-net-flows-double-digit-profit-growth
Started: EquityDevelopmen, 2 Nov 2023 14:54
Last post: EquityDevelopmen, 2 Nov 2023 14:54
Tatton Asset Management (AIM: TAM), the investment management and IFA support services Group, will be conducting a presentation covering its Interim Results for the six months ended 30 September 2023.
The event will be hosted by Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer).
The online presentation will take place at 2.00pm on Wednesday 22nd November, and is open to all existing and potential shareholders.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Link to register: https://www.equitydevelopment.co.uk/news-and-events/tattonam-investor-presentation-22november2023
Started: MartMcM, 19 Oct 2023 15:08
Last post: MartMcM, 19 Oct 2023 15:08
Tatton Asset Management plc issued a trading update for the for the six months ended 30 September 2023 this morning. The Group is performing well and results are in line with the Board's expectations for the Period, with continued growth in both revenue and profits driven by strong net inflows. Total net inflows in the Period were £0.910bn, marginally ahead of both the final six months of the prior financial year (H2 23: £0.887bn) and the same Period last year (H1 23: £0.907bn), total AUM at the end of the Period was £13.720bn (30 September 2022: £11.343bn), an annual increase of 21.0% or £2.377bn. Including 8AM Global Limited assets of £1.064bn, AUM/AUI increased over the last twelve months by 19.8% or £2.441bn to £14.784bn (30 September 2022: £12.343bn). Valuation is unhelpful with forward PE ratio over 20x and PS ratio near 8.6x. Share price also lacks momentum. Monitor for now...
...from WealthOracle
wealthoracle.co.uk/detailed-result-full/TAM/824
Started: EquityDevelopmen, 19 Oct 2023 08:41
Last post: EquityDevelopmen, 19 Oct 2023 08:41
AUM grew 8% over H1-24 (to 30 Sep 23) from £12.7bn to £13.7bn. Net inflows totalled £910m (7% of opening AUM), showing remarkable strength and consistency (H1-23: £907m, H2-23: £887m). This is even more impressive given the difficult economic and market environment which has hurt the growth of most sector peers, with some experiencing substantial outflows. Market and investment performance contributed £100m to AUM over the half-year.
‘Assets under influence’ (AUI), which includes the AUM of 8AM Global Limited (£1.1bn) in which Tatton owns a 50% stake, also grew 7% to £14.8bn. This brings the group within touching distance of its medium-term strategic AUI target of £15bn which it set out to achieve by March 2024.
Over H1-24, 51% of our forecast full-year AUM growth has been achieved (flows ahead, markets weaker) and we have left our forecasts unchanged, as well as our fundamental valuation of 580p, which is 22% above the current share price. We also flag that sector valuations have declined extremely sharply, and there is potential for a significant sector re-rating (see page 3).
New research report with audio summary: https://www.equitydevelopment.co.uk/research/growth-rate-head-and-shoulders-above-peers-again
Started: EquityDevelopmen, 20 Jun 2023 16:21
Last post: EquityDevelopmen, 20 Jun 2023 16:21
Tatton Asset Management (AIM: TAM), the investment management and IFA support services Group, conducted a presentation covering its Full Year results for the period to 31st March 2023.
Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer) ran investors through key highlights of the period, which included strong growth in Assets Under Management and significant organic net inflows (+£1.8 billion). Management discussed their clearly-defined growth strategy, and took viewers through a detailed Investment & Fund update. The team also answered a series of questions from investors.
The whole video presentation is available below and has been divided into chapters:
0:00:58 Key highlights (financial & operational)
0:05:37 Financial performance
0:11:34 Strategic update
0:24:35 Investment and fund update & Summary
0:29:35 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/tatton-asset-management-investor-presentation-fy-results-june-2023
Started: EquityDevelopmen, 13 Jun 2023 10:09
Last post: EquityDevelopmen, 13 Jun 2023 10:09
Detailed new research report from Equity Development (with audio summary) here: https://www.equitydevelopment.co.uk/research/forecasts-exceeded-in-fy23-strong-start-to-fy24
In FY23, Tatton (once again) grew much faster than peers. AUM was up 12% y-o-y excluding acquisitions (peer group median: 0%) to £12.7bn on 31 Mar 23 (31 Mar 22: £11.3bn). Assets Under Influence (AUI) reached £13.8bn (including 8AM Global: 50% stake acquired in Aug 22). In just over two months post year-end, AUI has grown another 3% to £14.3bn.
The bulk of growth in FY23 came from exceptionally strong net flows of +£1.8bn (FY22: +£1.3bn); 16% of opening AUM (FY22: 14%) compared to a peer group median of 4% (FY22: 6%). Tatton’s ability to attract and retain assets has been far above peers for some time now. It has clearly designed, and is delivering, an outstanding proposition to clients.
Tatton has exceeded our previous revenue and profitability forecasts for FY23 and we think its differentiated offering within a market sweet-spot (on-platform Model Portfolio Services growth rate: c25% p.a.) will fuel continued strong growth. We increase our FY24 forecasts: revenue from £35.0m to £35.9m; adjusted operating profit from £17.9m to £18.2m. Our fundamental valuation rises from 560p to 580p.
Started: EquityDevelopmen, 18 May 2023 10:32
Last post: EquityDevelopmen, 18 May 2023 10:32
Tatton Asset Management (AIM: TAM), the investment management and IFA support services Group, will be conducting a presentation covering its Full Year results for the period to 31st March 2023.
The event will be hosted by Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer).
The online presentation will take place at 11.30am on Thursday 15th June, and is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
You can sign up to register here: https://www.equitydevelopment.co.uk/news-and-events/tatton-am-fy-results-investor-presentation-15june2023
Started: EquityDevelopmen, 18 Apr 2023 08:49
Last post: EquityDevelopmen, 18 Apr 2023 08:49
FY23 AUM closed on £12.7bn (on 31 Mar 23), +12% y-o-y on a like-for-like basis (31 Mar 22: £11.3bn), and well ahead of our previous forecast of £12.2bn. Adding 8AM Global’s assets brings Assets Under Influence up to £13.8bn (Tatton acquired 50% of 8AM in Aug 22).
But most impressively, the bulk of growth came from exceptionally strong net flows of +£1.8bn (16% of opening AUM and +40% y-o-y), with momentum through the year (H1: +£907m; H2: +£887m). Tatton’s ability to attract and retain assets has been far above peers in recent years. It clearly has a strong strategic positioning and is gaining market share.
Our FY23 rev. forecast rises to £31.1m from £30.6m (FY24: £35.0m from £34.0m) and our FY23 adj. operating profit to £15.8m from £15.1m (FY24: £17.9m from £17.8m). We also highlight that Tatton is ahead of its medium-term growth plan. Our core value rises from 500p to 560p per share.
New research note with audio summary: https://www.equitydevelopment.co.uk/research/organic-growth-train-rumbles-on-with-inflows-40
Started: EquityDevelopmen, 25 Nov 2022 13:37
Last post: EquityDevelopmen, 25 Nov 2022 13:37
Tatton Asset Management (AIM: TAM), the investment management and IFA support services Group, conducted a presentation covering its Interim Results for the six months to 30th September.
Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer) and Lothar Mentel (Chief Investment Officer) took investors through the key highlights and financial performance of the period, which included best-in-class growth and record net inflows. The team provided detail on Strategy as well as an Investment and Fund update, and answered investor questions.
The video has been divided into chapters for ease of viewing:
0:00:03 Introduction
0:01:24 Key highlights
0:05:20 Financial performance
0:12:10 Strategic update
0:26:09 Investment and Fund update
0:35:02 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/tatton-am-investor-presentation-nov2022
Started: EquityDevelopmen, 23 Nov 2022 07:27
Last post: EquityDevelopmen, 23 Nov 2022 07:27
In our 18 October note, we stated how impressed we were with Tatton’s strong net inflows during H1-23 (to 30 Sep 22), an extremely testing economic period. These totalled +£907m (H1-22: £652m), an annualised rate of 16% of opening AUM, just offsetting a negative investment performance of -£905m (-8.0% of opening AUM compared to the MSCI PIMFA Private Investor Balanced Index fall of -9.6%), leaving AUM at £11.3bn (£12.3 bn including c£1.0bn of ‘assets under influence’ from the acquisition of 50% of 8AM Global, growing to £12.9bn in the post-results period).
With more peers releasing trading updates since that note, Tatton’s performance now looks even more impressive than first thought. It was the ONLY company in our peer group that grew AUM, with all comparable peers recording AUM declines (between 5% and 11%).
We highlight the significant growth potential beyond their three-year plan: Tatton is in a growing market with significant tailwinds; it has a market-leading proposition and is gaining market share; it has a huge opportunity to grow AUM even without winning new clients (by increasing average AUM per client); and it can accelerate growth through strategic partnerships and acquisitions.
Our core value is 500p per share, 14% above the current share price. This increases from 460p on better-than-expected interims and a fall in the 10-year Gilt rate, the risk-free rate in our DCF valuation.
Note and audio summary (free & accessible) here: https://www.equitydevelopment.co.uk/research/best-in-class-growth-in-very-difficult-markets
Started: EquityDevelopmen, 2 Nov 2022 09:58
Last post: EquityDevelopmen, 2 Nov 2022 09:58
Sign up to register here: https://www.equitydevelopment.co.uk/news-and-events/tattonam-interim-results-investor-presentation-november2022
Tatton Asset Management (AIM: TAM), the investment management and IFA support services Group, will be conducting a presentation covering its Interim Results for the period to 30th September 2022. The presentation will be hosted by Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer).
The event will take place at 11.30am on Wednesday 23rd November.
The online presentation is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Started: EquityDevelopmen, 18 Oct 2022 08:53
Last post: EquityDevelopmen, 18 Oct 2022 08:53
Link to full new research note from Equity Development: https://www.equitydevelopment.co.uk/research/exceptionally-strong-half-year-of-net-inflows
Even in more ‘normal’ economic times, Tatton’s net inflows over H1-23 (to 30 Sep 22) would have been impressive. But given the weak economic and market environments, it is an exceptional performance. Net inflows totalled £907m (annualised rate of 16% of opening AUM), averaging £150m per month. This is a sharp increase (+39%) over H1-22 which saw £652m of net inflows (annualised rate of 14.5% of opening AUM), averaging £100m per month.
Falls in financial markets, however, offset most of these AUM gains. The MSCI PIMFA Private Investor Balanced Index fell 9.6% over the period with market movements and investment performance being responsible for a £905m reduction in Tatton’s AUM (-8.0% of opening AUM). AUM closed the half-year marginally up at £11.343bn (31 Mar 22: £11.341bn).
While net inflows are ahead of our forecasts by some margin (previous estimate £1.3bn for the full FY23), market falls lead us to reduce our end-FY23 AUM forecast from £13.0bn to £12.2bn (Tatton has also flagged that H1 inflows were boosted by several ‘wins’ with H2 net inflows likely to be lower than H1). This, coupled with the jump in UK Gilt yields (the risk-free rate in our DCF valuation), reduces our fundamental value from 540p to 460p, still 30% above the current share price.
We also highlight that while only a limited data set is available, it seems that Tatton’s H1 performance of net inflows exceeding negative investment performance (i.e., a net increase in AUM) appears to be a standout performance among London-listed asset and wealth management peers (see page 2). We will revisit this comparison when interim results are released in November.
Started: EquityDevelopmen, 17 Aug 2022 13:13
Last post: EquityDevelopmen, 17 Aug 2022 13:13
50% of 8AM now bought byTatton AM which looks a solid strategic fit. It also impressively reports strong net inflows over first 4 months.
Equity Dev updates forecasts and its fair value/share rises to 540p, read note here:
https://www.equitydevelopment.co.uk/research/stake-in-8am-acquired-net-inflows-solid
Started: EquityDevelopmen, 21 Jun 2022 12:16
Last post: EquityDevelopmen, 21 Jun 2022 12:16
*** FY Results investor presentation (June 2022) ***
Tatton Asset Management (AIM: TAM), the investment management and IFA support services Group, conducted a presentation for investors with Q&A covering their Full Year results for the period to 31st March 2022.
Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer) took a more detailed look at pricing within a maturing MPS market, how their competitors are responding to the opportunity of growing inflows, and how Tatton’s offering and performance record insulates its price point.
The management team discussed the opportunity for acquisitions, as well as how the 8AM acquisition is bedding in, and how the Fintel and Tenet deals continue to contribute to growth in AUM. They also took questions from investors.
The full video is available here, divided into chapters:
0:00:03 Introduction & key period highlights
0:03:30 Financial performance
0:12:39 Strategic update
0:26:28 Investment & Fund update
0:33:22 Summary
0:34:22 Questions & Answers
Link to full video: https://www.equitydevelopment.co.uk/research/tatton-am-fy-investor-presentation-june2022
Started: EquityDevelopmen, 15 Jun 2022 10:13
Last post: EquityDevelopmen, 15 Jun 2022 10:13
"A sector leader in both growth and profitability"
Despite sharp market falls in Q4 of FY22 (Jan-Mar 22), AUM grew 26% y-o-y to £11.3bn (FY21: £9.0bn), with £1.3bn of net inflows (14.2% of opening AUM compared to a sector median of just 4.3%). Revenue grew 26% from £23.4m in FY21 to £29.4m, adjusted operating profit 27% from £11.4m to £14.5m, and adjusted operating margin increased from 48.8% to 49.5% (compared to a sector median of 32%), providing further evidence of operational gearing.
Net cash increased 28% from £16.9m to £21.7m, even though £6.6m was paid in dividends and £3.0m for the first tranche of the Verbatim funds acquisition. Tatton has declared a full-year dividend of 12.5p, 14% up on the 11p distributed in FY21, giving a yield of 3.0%
Our fundamental value is 530p per share. That is c. 27% above the current share price, but down slightly on our previous value of 560p per share - due mainly to an increased discount rate (which is in turn due to the recent jump in UK 10-year Gilt yields which we have used as our risk-free rate).
Link to full research report: https://www.equitydevelopment.co.uk/research/a-sector-leader-in-both-growth-and-profitability
Started: Share_1122, 13 Jun 2022 01:08
Last post: Share_1122, 13 Jun 2022 01:08
maybe something to look forward to on Tuesday !! ( Results /possibly News ) .... on a bearish Market Day.
Started: EquityDevelopmen, 30 May 2022 13:53
Last post: EquityDevelopmen, 30 May 2022 13:53
Tatton Asset Management (AIM: TAM), the investment management and IFA support services Group, will be conducting a presentation covering its Full Year results for the period to 30th March 2022.
The presentation will be hosted by Paul Hogarth (Chief Executive Officer), Paul Edwards (Chief Financial Officer), and Lothar Mentel (Chief Investment Officer).
The event will take place at 11.30am on Monday 20th June.
The online presentation is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Sign up to register here: https://www.equitydevelopment.co.uk/news-and-events/tatton-am-fy-results-investor-presentation-20june
Started: EquityDevelopmen, 20 Apr 2022 08:54
Last post: EquityDevelopmen, 20 Apr 2022 08:54
#TAM AUM ended FY22 (31 Mar 22) on £11.3bn, +26% y-o-y (31 Mar 21: £9.0bn), in line with our previous forecasts. But more impressive, from a longer-term strategic perspective, is the fact that ‘organic’ net inflows of +£1.28bn exceeded our forecasts to make up for an investment performance which was hit by the market turbulence of Q4 (Jan-Mar 22). In fact, net inflows in H2 almost matched H1 (£625m vs £652m).
Tatton has also entered into an agreement to acquire 50% of 8AM Global Limited (8AM), for c£7.0m (£3.5m payable on completion, funded through the issue of new shares, plus two performance-adjusted payments after 12 & 24m). Tatton will have an option to acquire a further 50%. This appears to be a solid strategic fit and in line with Tatton’s acquisition strategy.
Our bullish view on Tatton’s fundamentals remains unchanged, as do our forecasts, other than a small adjustment to FY22 AUM to match the actual closing value. We maintain our fundamental value of 560p per share1 which is around 30% above the TAM share price following its recent fall, although we highlight the fall is not unique to TAM, with ‘growth shares’ generally hard-hit in 2022.
https://www.equitydevelopment.co.uk/research/strong-flows-in-impressive-fy22.-new-acquisition-for-fy23
Started: EquityDevelopmen, 19 Nov 2021 09:55
Last post: EquityDevelopmen, 19 Nov 2021 09:55
Tatton Asset Management, the investment management and IFA support services Group, conducted an investor presentation covering its Interim Results for the period to 30th September 2021.
Paul Hogarth (CEO), Paul Edwards (CFO), and Lothar Mentel (CIO) took investors through key highlights of their financial and operational results, including the recent progress on the Fintel deal, the strength and health of the IFA sector, and the continued operational gearing which benefits the bottom line. They also reviewed investment performance and talked through the moat they have developed which means they are more than just a low cost provider.
You can watch the full video here: https://www.equitydevelopment.co.uk/research/tatton-am-interims-investor-presentation-nov2021
Started: EquityDevelopmen, 17 Nov 2021 07:54
Last post: EquityDevelopmen, 17 Nov 2021 07:54
In October, we upgraded our forecasts and fair value based on higher-than-expected AUM at the end of H1 (£10.8bn on 30 Sep, +38% y-o-y), with net inflows being particularly strong (£652m, 99% up on H1 21), and a growth outlook boosted (primarily) by a new distribution agreement concluded with Fintel plc - which provides access to 3,800 intermediary firms.
Tatton’s interims confirm our projected strong H1 performance. Short-term growth momentum continues with AUM reaching £11.2bn on 12 Nov. And progress on the Tenet partnership (incepted 2019) show a ‘snowball’ growth effect kicking in, which reinforces the medium-term potential of the Fintel deal, and supports our forecasts.
In March 21 (AUM: £9.0bn), Tatton outlined a plan to reach £15bn AUM in three years. It targeted £1bn of organic net inflows per year and had a healthy M&A pipeline. Today, with such strong inflow momentum, and in particular the huge potential of the Fintel distribution deal, we think it could hit the target without further acquisitions. On this basis, our fair value is 560p per share.
This value has potential to increase if further value enhancing acquisitions are executed and/or if organic growth exceeds expectations. In addition, given its growth prospects, we don’t consider Tatton’s forward PE (adjusted) of 29 to be particularly demanding.
https://www.equitydevelopment.co.uk/research/impressive-interims-support-recent-upgrade